In Portugal, a decline is observed in online gaming activities following years of sustained growth momentum.
The online gaming market in Portugal is currently experiencing a phase of plateauing and consolidation after nearly three years of uninterrupted growth. In Q1 2025, the market experienced its first quarter-on-quarter revenue decline, dropping 12% from the record €323 million in Q4 2024 to €284.7 million. Despite this dip, the market still shows a healthy 9% year-on-year increase, indicating that the overall momentum remains positive but may be stabilizing after rapid expansion.
In 2024, online games generated €1.11 billion in gross revenue, with online casinos accounting for 60% of total revenue, amounting to €169.7 million, and online sports betting accounting for 40%, with €114.9 million. The latest news includes a drop in online games in Portugal after years of rapid growth, with total gross revenue in the first quarter of 2025 being €284.7 million, a decrease from €323 million in the last quarter of 2024.
The Regulatory and Inspection Service for Games (SRIJ) released these data, which also revealed that there were 4.8 million active accounts in the first quarter of 2025, a 7% increase compared to the previous quarter. Since the regulation of the activity in 2015, the number of licensed operators has reached 30, with 13 for sports betting and 17 for online casinos.
### Current Challenges
The decline following a record-setting 2024 suggests the market might be reaching saturation or maturity, heightening competitive pressure among operators. Maintaining player engagement is increasingly challenging as growth slows. The drop in online casino revenue by 8.1% quarter-on-quarter and sports betting revenue by 16.9% quarter-on-quarter reflects fluctuations possibly tied to seasonal factors and consumer behavior. Educating consumers about responsible gambling and new product features is essential to sustain activity.
Another challenge is the regulatory environment and European compliance. Portugal’s online gaming market is regulated by the Serviço de Regulação e Inspeção de Jogos (SRIJ), which ensures compliance with national and European gambling regulations. Adjusting to evolving European policies on consumer protection, anti-money laundering, and advertising restrictions remains a critical challenge, especially as the market consolidates and competition intensifies.
### Future Trends
The recent revenue dip signals that the Portuguese online gambling market may be entering a phase of consolidation after rapid growth. Operators may focus on optimizing existing players rather than aggressive market expansion. To differentiate in a mature market, operators are likely to invest in innovative gaming experiences, including integration with esports, live dealer games, and personalized platforms leveraging AI and data analytics to improve player retention.
Following European regulatory trends, there will likely be a stronger emphasis on responsible gambling tools, transparency, and player education to build trust and long-term engagement. With European regulations evolving towards harmonization, Portuguese operators might explore expansion opportunities or partnerships across other regulated European markets, balancing compliance with competitive growth.
It's crucial for the government and regulators to strengthen enforcement mechanisms and increase consumer education to ensure bets are placed only on authorized platforms. Stricter regulations on advertising, betting limits, and gambling addiction prevention may modify user behavior and the sector's financial results. The presence of unlicensed operators in the Portuguese market remains a concern, and addressing this issue will be essential for maintaining the market's integrity and growth potential.
Portugal collected €82.7 million in taxes on online games in the first quarter of 2025, demonstrating the sector's continued importance to the country's economy. Despite the challenges, the sector still faces several challenges, but the future will likely focus on innovation, consumer protection, and strategic consolidation to maintain overall positive momentum.
Sports betting continues to be a significant contributor to the online gaming market, accounting for 40% of total revenue in 2024. The recent decline in the market might put more emphasis on sports betting operators to maintain player engagement and innovate to differentiate in a mature market, potentially investing in esports, live dealer games, and AI-based personalized platforms.
The regulatory environment in Europe, including compliance with consumer protection, anti-money laundering, and advertising restrictions, poses a challenge for operators as the market consolidates and competition intensifies. To stay competitive, sports betting operators may explore opportunities or partnerships in other regulated European markets.
