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Why Banning Online Gambling in Portugal May Not Protect Players

Consumer complaints rise over frozen funds. Banning betting may drive players to illegal sites, risking safety and cutting tax revenue.

Smartphone displaying online betting interface in dimly lit environment

Portugal’s Online Gambling Debate Focuses on Consumer Harm and Illicit Markets

Nearly half of all consumer complaints about online betting platforms in Portugal involve players unable to withdraw their winnings, according to DECO PROteste. The issue goes beyond delayed payments — users also report opaque bonus terms, sudden account closures, poor transparency in bet settlements, and failures in self-exclusion tools designed to curb addiction.

Half of all consumer complaints relate to frozen funds, highlighting a systemic breakdown in trust between players and licensed operators. Magda Canas, spokesperson for DECO PROteste, stressed that protection cannot rely on individuals recognizing risk alone, especially when digital platforms flood users with targeted promotions 24/7.

Why Illegal Sites Thrive

Despite a regulated market in place for over a decade, between 40% and 50% of Portuguese gamblers still use unlicensed platforms, according to industry research by Aximage commissioned by APAJO. Three in four of these users say they turn to illegal sites because they offer games, odds, and features unavailable on licensed platforms.

Ricardo Domingues, president of APAJO, argues that banning legal betting would not reduce demand — it would only drive it underground. "The most serious impact will always be on consumer safety," he said. On unregulated sites, users face unchecked risks: stolen personal data, lost deposits, no recourse for disputes, and exposure to minors. The Brazilian example, he noted, offers a cautionary tale: after President Lula announced a ban in September 2026, searches for "VPN" to bypass restrictions surged.

The Hidden Cost of a Ban

Legal online gambling generated €328.2 million in gross revenue during the second quarter of 2026, up 1.4% from the prior period. Of this, 61.9% came from casino-style games, and 38.1% from sports betting. The tax revenue tied to this activity — including the Special Online Gambling Tax (IEJO) — reached €353 million in 2025, a 5.4% increase from the year before.

A total ban would cut off state income, hurt media and sports partnerships, and threaten thousands of jobs in marketing, tech support, and customer service. More critically, it would remove oversight from a market where 77 criminal referrals were made to the Public Prosecutor’s Office in 2026, including six in the second quarter alone.

Autoexclusion Gets a Boost — But Is It Enough?

In April 2026, the Service of Regulation and Inspection of Games (SRIJ) launched a unified national platform allowing users to block themselves from all licensed operators with a single action. This replaced fragmented systems across companies and is now accessible via mobile or web.

Yet the system only works on legal sites — it offers no protection against illegal platforms, which remain unreachable by regulators. APAJO acknowledges the need for further improvements, including real-time spending limits, automated risk alerts, and faster reactivation procedures for self-excluded users.

"We presented our proposal in April 2025," said Domingues. "The central platform is a step forward — but we’re still pushing for deeper integration of responsible gambling tools within operator systems."

Influencers, Ads, and the Blur Between Content and Promotion

YouTube influencer Wuant ignited national debate by publicly criticizing peers — including close contacts — for promoting betting brands without clear disclosure. The incident exposed how commercial messaging often disguises itself as entertainment, particularly among young, socially active audiences.

DECO PROteste demands that all influencer partnerships be explicitly labeled as paid promotions, with mandatory risk warnings such as: "Gambling can lead to financial and emotional harm." It also calls for stricter rules blocking ads targeting users under 25.

APAJO supports these limits, insisting only licensed operators should be promoted. "Responsibility isn’t optional," says Domingues. "It’s the foundation of a market that lasts."

Who’s Betting? Who’s at Risk?

Of 4.9 million active accounts on licensed platforms in Q2 2026, over 76% of users were under 45. Young adults aged 18 to 24 accounted for 36.2% of all new registrations — raising urgent questions about targeted marketing.

While no data tracks underage use on illegal sites, the high number of new young sign-ups on legal platforms suggests a growing vulnerability. The government continues to prioritize crackdowns on illicit operators, while the party Livre warns the scale of problem gambling has reached public health emergency levels.

A Shared Path Forward

Both consumer advocates and industry representatives agree: outright prohibition is not the answer. Instead, they urge a multi-pronged approach:

• Strengthen advertising controls, especially on social media

• Expand real-time monitoring of high-risk betting patterns

• Improve access to psychological support for compulsive gamblers

• Increase transparency and enforcement against unlicensed operators

Those concerned about their own habits can access free, anonymous support via line 1414, a national helpline operated by the National Health Service for addictive behaviors. It runs 24/7 and handles over 10,000 calls annually.

The challenge in Portugal isn’t stopping betting — it’s ensuring that if people choose to play, they’re protected, informed, and not left to face the risks alone.

Tomás Ferreira
Author

Tomás Ferreira

Business & Economy Editor

Writes about markets, startups, and the digital forces reshaping Portugal's economy. Believes good financial journalism should make complex topics feel approachable without cutting corners.