Portugal has decided that it will not allow online poker sites operating in the country to pool players from other jurisdictions.
The move was seen as a surprise, since other European markets which have made similar moves, such as neighboring Spain and France, have seen online poker play decline. The Portuguese Gambling Act also does not mention the exclusion, which is called ring-fencing.
The act came into effect in June and Portuguese officials hope to $28 million per year in taxes from allowing international operators to run games in the country’s online market. Online casino and poker revenue will be taxed between 15 percent and 30 percent depending on an operator’s annual income.
That high tax rate has already led to several online sites including William Hill, Ladbrokes, PokerStars and Full Tilt to say they will not participate in the Portuguese market.
No sites are operating in the country, however, as a licensing process is still underway.
Discontent had already been sown among potential operators because of the high tax rates established by the new licensing regime, which are considered to be overly complicated and punitive.
