“The main concern of the Portuguese government was to put an end to a nonexistent legal framework for online gambling”

Why has the Portuguese government decided to lift the ban on online gambling this year?

The Portuguese government was fully aware of the existence of an unregulated market of online gambling in Portugal, therefore its major concern was to put an end to a nonexistent legal framework for online gambling in Portugal, situation that enhanced the illegal market. So, once the ineffectiveness of the existing ban was recognized, the regulation issued sought to establish the conditions on which gambling online could be carried out and who could engage in it.         

The main purpose was to approve a comprehensive, competitive and attractive legislation that would bring to the legal market, players and operators, who act in the illegal market without any  protection. At this moment it was possible to achieve the best consensus in this matter, not only at the political level but also into the Portuguese society, because it was clear for all  that we would deal better with the problems that online gambling and betting could arise if we had a legal framework that allows us to control, regulate and enforce the law whenever is needed in name of the interests - private and public - we want to  protect.  

A rapid glimpse within the legal framework allows us to enumerate some of those advantages:

                  § Guarantees a better protection to players and specially to minors and those who are more vulnerable

                  § Allows an adequate control of the conditions of the operating and engagement on online gambling in order to ensure security and public order, preventing excessive and unregulated gambling and addictive behavior

                  § Favors moderate, non-compulsive and responsible gaming

                  § Prevents online gambling related to criminal behavior

                  § Avoids fraud and money laundering practices

In order to achieve all those goals, the approved regime establishes that the right to exploit online gambling and betting can be granted by issuing a license, excluded any forms of exclusives, and without any limitation of number. The legal framework already approved also covers a broad spectrum of games affording competitiveness to the Portuguese market.

What will be the role of the Serviço de Regulação e Inspeção de Jogos in this brand new market?

The Serviço de Regulação e Inspeção de Jogos (SRIJ) will be the regulator of this new market, monitoring, inspecting and regulating this activity. SRIJ will be responsible for the issuance of licenses, controlling the activity of the operators and imposing penalties and administrative offences.

Is the iGaming market competing against traditional forms of gambling? Are they two separate businesses?

The online market is a separated one with a different target and therefore with distinct clients, so it is our conviction that it will be no influence in the offline gambling sector.

The new regulation came into force on Sunday 28 June. How has the market responded?

The market and the potential operators have shown a great interest. Several entities have revealed serious interest in applying for a license and are gathering the necessary documentation for that purpose. Potential operators and gamblers have actively participated in the public discussions regarding the drafts on the secondary legislation.

What are the main advantages of the new tax regime?

We see the approved regime as balanced one, because it is adequate to each type of game, considering its specific characteristics. Furthermore, the revenues of the online gambling activity subject to IEJO (special tax on online gambling) shall not be liable to IRC (corporate income tax), IS (stamp duty) or VAT and this tax regime is only applicable to the operators.

How will you protect the punter from potential scams and compulsive gambling?

The operators shall draw up a plan and adopt measures which ensure responsible gambling, providing the necessary information for the players to make an informed choice, fostering moderate, non-compulsive and responsible gambling behavior, providing warnings against excessive online gambling and about the player’s rights on self-exclusion.

What are your thoughts on the exit of Wiliam Hill and PokerStars?

According to the legal framework only licensed operators may operate in Portugal. Therefore all of those that are operating in Portugal without a portuguese license must cease its activity. SRIJ is pleased with all actions taken by the entities that voluntarily and in good faith cease any illegal activity in Portugal.