Market may be too rich for small operators
On February 26, the Portuguese Council of Ministers approved legislation to regulate online poker.
“The bill will proceed with the regulation of online gambling in line with the recommendations issued by the European Commission on this matter and the international best practices,” the government said in a press release. Portugal’s former state monopoly was perceived as technically going against the EU’s freedom-of-trade rule.
According to Pokernews.com, the regulatory structure, to be authorized by President Aníbal Cavaco Silva, will oversee online poker, online casino and online betting, and hopefully reap new fiscal revenues of approximately €25 million (US$27.5 million).
Once signed into law by the president, the regulations will launch a new license-based market similar to those in Spain, Italy and France. Authorities say the first licenses?which will be renewable and valid for three years?could be issued during the third quarter of 2015.
The Turismo de Portugal will be in charge of enforcing the regulations through a newly established gambling commission.
As PokerNews Portugal reports, games of luck and chance, gambling games, and horse racing betting will be taxed at between 15 percent and 30 percent of gross gaming revenue, based on revenues generated; casino and poker operators will pay 15 percent tax if they generate less than €5 million a year, with a 3 percent increase for every additional €1 million.
Sports betting also will taxed on a sliding scale, from 8 percent to 16 percent. As for the landscape of the market, there is considerable tax disparity between the types of online gambling.
The legislation also includes measures to ensure the integrity of online gaming, ensure player security, protect player funds and combat offenses including underage and problem gambling and money laundering.
Operators must post a bond of €500,000 (US$555,600) in order to apply for a Portuguese online gaming license. They can accept deposits and process withdrawals through any EU-regulated credit institution in the European Union.
In addition, player pools will not be segregated and players will not be taxed on their winnings, reported Pokernewsreport.com. That news “was particularly well-received by recreational players,” according to the website. But for diehard players and pros, “the likelihood of reduced rewards and benefits is going to affect their ROI, and many are considering moving out of the country or shifting their allegiance to offshore sites.”
Because the buy-in for operators is expensive, the regulated market may be limited to larger operators, including the Santa Casa de Misericordia de Lisboa, the state-run monopoly, as well as PokerStars and 888Poker. Ladbrokes, which recently pulled out of the Portuguese market, may return once the regulations are in place.
