RGA back to drawing board with Portuguese online gambling proposal

Whilst the RGA has welcomed the initiative of the Portuguese government in deciding to regulate the online gambling market, it believes that taxes on stakes of 8-16% for online sports betting will dissuade the vast majority of online operators from applying for licences and investing in Portugal. 

The RGA argues that whilst online sports betting operators who decide to operate under a licence will have to live with such punitive taxes, Santa Casa, the monopoly operator of offline sports betting, will face only half the tax burden on its offline sports betting offer with the RGA calling on the Portuguese government to rethink its approach to the taxation of the online sports betting market.

Clive Hawkswood, CEO of the RGA said: “Whilst the RGA and its members welcome the Portuguese initiative in seeking to regulate the online gambling sector, our members are extremely concerned about the unworkable tax rates that are proposed in the draft law which is presently being considered. 

The extent of the disparity in tax burden between licensed online sports betting operators and the offline monopoly operator Santa Casa could be as much as 50% in favour of Santa Casa. Such a differential has the potential to create a situation of substantial illegal state aid being granted to Santa Casa by the Portuguese government whilst also destroying any hope for fair competition in a future regulated online sports betting government. 

The RGA would welcome the opportunity to engage in a constructive dialogue with the Portuguese government to ensure a level playing field for all online sports betting operators seeking to obtain licenses.”