Portugal’s Online Gambling Market in Q1 2025 Witnesses Slowdown

Portugal has experienced a notable shift as it enters 2025. After a period of remarkable growth, recent data indicates that the market may be reaching a plateau.

The online gambling market has been on an upward trajectory since its regulation in 2015. The introduction of a legal framework allowed for the establishment of various operators, leading to a competitive environment. As of Q1 2025, the market has seen significant developments, with gross revenue figures reflecting both growth and a potential slowdown.

In the first quarter of 2025, the gross revenue from online gambling reached approximately €284.7 million (around $335.4 million). This figure represents a 9% increase compared to the same quarter in the previous year. However, it marks a decline from the record €323 million achieved in Q4 2024. This quarter-on-quarter decrease is particularly noteworthy, as it is the first such drop since Q2 2022.

Breakdown of Revenue Sources

The revenue composition reveals interesting insights into consumer behaviour:

• Online Casino Revenue: Contributing 60% of the total, online casinos generated €169.7 million, reflecting a 6% year-on-year increase but an 8% decrease from the previous quarter.
• Sports Betting Revenue: Online sports betting saw a modest rise, with revenues totalling €114.9 million, up 14% year-on-year. However, this figure represents a 17% decline from Q4 2024, indicating a significant shift in betting patterns.

The chairman of the Portuguese Online Betting and Gambling Association (APAJO), Ricardo Domingues, said that the signs of deceleration are a natural progression in a maturing market. As the industry stabilizes, fluctuations in revenue are expected. The focus now shifts to managing demand and addressing competition from illegal operators, which remains a pressing concern.

With over a decade of operation, the market has expanded to include 30 licensed operators, comprising 13 for sports betting and 17 for online casinos. The government has also benefited from this growth, collecting €82.7 million in taxes from online gambling activities in Q1 2025.

Despite the revenue decline, the number of active online gambling accounts in Portugal increased by 7% from the previous quarter, reaching 4.8 million.