???? Portuguese White Market: Q1 2024 Review

The first quarter of 2024 was a significant period for online gambling in Portugal. The country achieved record revenues in this sector, which is an important indicator of its success. According to data from the regulatory body Servi?o de Regula??o e Inspe??o de Jogos (SRIJ), total revenue from online sports betting and gambling amounted to €260.9 million, up 14.8% from the previous quarter. This figure marked the seventh consecutive quarter with record revenue, indicating steady market growth and development.

Revenue Distribution

One of the key changes in the revenue structure was the distribution between sports betting and gambling. In the first quarter of 2024, sports betting accounted for 38.6% of total revenue, while gambling accounted for 61.4%. This distribution demonstrates the growing interest in gambling, which is becoming the main source of revenue in the sector.

Revenue breakdown:

- Sports betting: €100.6 million

- Gambling: €160.3 million

This growth in gambling is driven by an expanded offering and improved user experience. Operators are introducing new games, technologies, and bonus programs that attract new users and retain existing ones.

Revenue Growth

Compared to the same period last year, total revenue increased by €33.6 million. This significant increase shows that the market continues to expand and attract more players. An important growth factor was the increase in the number of registered players. In the first quarter, the number of registered players reached 4.3 million, up 15.6% compared to the previous year. There was also a significant increase in the number of new players: in the first quarter, their number grew by 304,100 people, up 28% compared to the same period last year.

This growth can be explained by several factors:

1. Improved accessibility and convenience of online gambling. Operators continue to enhance their platforms, making them more user-friendly and accessible. This includes improving mobile apps, optimizing websites, and enhancing customer service quality.

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2. Expansion of marketing campaigns. Operators actively use advertising campaigns to attract new players. This includes online advertising, television ads, and social media promotion, as well as sponsoring sports events and teams.

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3. Introduction of new products and services. Operators continue to introduce new games and services to meet growing demand and offer players variety. This includes new types of gambling such as virtual sports and esports.

Tax Revenues

Revenue growth was also reflected in tax revenues. Taxes collected from online gambling in Portugal reached €86.2 million in the first quarter of 2024, up 36.6% compared to the same quarter in 2023. This significant increase highlights the importance of online gambling for the country's economic stability and development.

Tax revenues make a significant contribution to the state budget and funding of various social programs. It is important to note that the increase in tax revenues also reflects effective regulation and compliance by operators. Regulators continue to ensure transparency and fairness in the market, contributing to its sustainable development.

Sports Betting

Online sports betting revenue also showed significant growth. In the first quarter of 2024, sports betting revenue increased by 17% to €100.6 million on total bets of €574.0 million. The online sports betting margin for the period was 17.5%.

Popular sports for betting:

- Football: 72%

- Tennis: 14%

- Other sports: 14%

These data show that football remains the dominant sport for betting in Portugal. The popularity of football is due to its broad reach and high frequency of matches, providing players with more betting opportunities. Tennis also holds a significant market share, thanks to its popularity and regular tournaments.

Popularity of Esports

According to SRIJ data, football continues to be the most popular sport for betting, accounting for 72% of all bets in the first quarter. Tennis ranked second with 14% of bets, and other sports also accounted for 14% of bets. This statistics reflect the stable preferences of Portuguese players and their commitment to major sports.

The growth in revenue and tax collections from online gambling has a significant impact on the Portuguese economy. Increased tax revenues contribute to funding government programs and social initiatives. Moreover, the increase in the number of registered and new players indicates market expansion, contributing to job creation and the development of related industries such as marketing, IT, and financial services.

Role of Regulation

Regulation plays a key role in ensuring the sustainable development of online gambling in Portugal. Servi?o de Regula??o e Inspe??o de Jogos (SRIJ) is responsible for overseeing and regulating the market, ensuring that operators comply with laws and regulations. Effective regulation promotes transparency and fairness in the market, protecting the interests of both players and operators.

Key aspects of regulation include:

1. Licensing of operators. All operators offering online gambling in Portugal must obtain a license from SRIJ. This ensures that operators comply with all necessary laws and regulations, providing safe and fair gaming.

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2. Supervision of operators' activities. SRIJ actively monitors the activities of operators, reviewing their financial statements, marketing campaigns, and compliance with rules. Regular checks and audits help identify and prevent potential violations.

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3. Protection of players' interests. The regulator pays special attention to protecting players' interests, ensuring their safety and protection from fraud. This includes the creation of responsible gaming programs, support for players with gambling problems, and ensuring the transparency of game conditions.

Development Prospects

The Portuguese online gambling market shows steady growth and development. Increasing revenues, the number of players, and tax collections confirm the importance of this sector for the country's economy. In conditions of continued growth and record revenues, it is important to continue supporting and developing this industry, ensuring transparent and fair conditions for all market participants.

Key areas for further market development include:

1. Expansion of the offering. Operators should continue to introduce new games and services to meet growing demand and offer players variety. This includes developing new types of gambling, improving existing products, and implementing innovative technologies.

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2. Improvement of user experience. Operators should pay attention to improving user experience, making platforms more convenient and accessible for players. This includes improving mobile apps, optimizing websites, and enhancing customer service quality.

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3. Marketing strategies. Operators should actively use marketing strategies to attract new players and retain existing ones. This includes advertising campaigns, sponsorship of sports events, and using social media to promote their services.

4. Responsible gaming. It is important to continue developing and supporting responsible gaming programs, ensuring the protection of players from gambling-related problems. This includes creating educational programs, providing support for players, and collaborating with organizations dealing with gambling issues.

Conclusion

Portugal continues to strengthen its position as one of the leading online gambling markets in Europe, offering players diverse and exciting opportunities for gambling and sports betting. Record revenues, increasing the number of players, and tax collections confirm the importance of this sector for the country's economy. In conditions of continued growth, it is important to continue supporting and developing this industry, ensuring transparent and fair conditions for all market participants. Regulation plays a key role in ensuring the sustainable development of online gambling, protecting the interests of both players and operators.

The Portuguese online gambling market shows steady growth and development. Increasing revenues, the number of players, and tax collections confirm the importance of this sector for the country's economy. In conditions of continued growth and record revenues, it is important to continue supporting and developing this industry, ensuring transparent and fair conditions for all market participants.

Portugal continues to strengthen its position as one of the leading online gambling markets in Europe, offering players diverse and exciting opportunities for gambling and sports betting. Record revenues, increasing the number of players, and tax collections confirm the importance of this sector for the country's economy.