Gambling is doing well in Portugal, and the iGaming market is clearly in an upward trajectory. Today, we take a look at what has made it possible for Portugal to enjoy an almost unceasing interest in its gaming industry, and specifically online casinos, over the past several years.
Today, we take a look at what has been happening in the country over the past years to decide if we can realistically call the iGaming sector “strong.”
Strong Numbers in Q3
While iGaming in most countries in the region is coming under heavy regulation, Portugal has kept both a tough stance on gambling while at the same time improving regulatory oversight. At first, many stakeholders and lobbyists feared that overregulating the industry would hit a brick wall because the regulation was supposed to stifle innovation and interest.
None of this has transpired, as the latest results indicate. In Q3, 2020, Portugal’s online gambling industry posted a strong ?84.2 million in total revenue, or a 55.6% increase year-over-year. Clearly, online gambling has been boosted by the pandemic, which has proven a helpful factor for some businesses, but certainly came with its economic ramifications for the country.
Yet, the entertainment industry, and specifically the sectors that do business online, has remained fairly unscathed by the issue. If anything, it has led to much better results across the board. Some have feared that increased interest in online gambling would mean a higher incidence of gambling addiction.
However, in places like Portugal, the strict regulatory measures guarantee that it’s not as easy for consumers to play excessively. Portugal’s revenue climbed steadily from games of chance in the third quarter, granted, but there have been no reports to suggest that this has come at the expense of players.
Finding themselves with more time on their hands, many consumers have turned to a favourite hobby. In fact, some 156,000 people registered to participate in online gambling products in Q3, a significant spike from a quarter before when only 62,000 people joined online gambling.
Not a Temporary Thing
While some of the recent successes in the industry can be attributed to the pandemic, not all is because of the shutdown. Casinos Online have been developing quickly in the context of tough regulation, which the government has chosen to keep in place to ensure consumer protection.
Even before the pandemic started, Portugal saw strong results. The first half of 2020 was marked by another landmark increase in results, which was driven by consumers, and specifically online. Online gaming once again posted strong results, with the industry earning ?139 million from operations.
The question is if that is going to be sustainable growth. Chances are that once lockdown measures are off, online gaming will decline to pre-pandemic levels, adjusting for its organic growth, it was going to achieve.
While growth and the temporary leg-up is welcome, regulators and lawmakers, as well as operators, will do well to address an issue that may rear its head further down the road ? gambling addiction.
Addressing Concerns about Excessive Gambling
While there have been no reports that gambling addiction has increased in Portugal, it’s still too early to tell. Gambling establishments may be enjoying the hefty revenue they are pulling in, but to guarantee sustainability, stakeholders will have to go the extra mile and see to it that regulatory standards are kept through and through.
Regulation is not very likely to tighten in Portugal as it already has a working framework that focuses on the safety of individual players. Yet, it’s good to keep in mind that the increased online gambling activity will lead to more pressure on stakeholders to make sure their offer does not allow vulnerable customers to access gaming products.
The Outlook
Overall, the iGaming outlook in Portugal is optimistic. 2020 was a year of unchecked growth, but as the world tries to return back to normal, many things will have to change. iGaming results in 2021 will probably remain strong, with the country heading for more realistic numbers in 2022 and beyond.
Despite some of the challenges and risks of the past year, there have been numerous partnerships as well. The interest in gaming is at all-times high, and the additional tax money that has been secured thanks to online gambling is welcome by the government, which can use it to offset some of the financial consequences of the pandemic.
Yet, stakeholders should be aware that Portugal may yet tighten the fiscal conditions a little more. After all, there seems to be no shortage of candidates to enter the market.
