Portugal’s online gambling sector witnessed dynamic shifts in the second quarter of the year, marked by notable increases in Gross Gaming Revenue (GGR) alongside some concerning declines in certain segments.
Surge in GGR Driven by Games of Chance:
Portugal experienced a significant double-digit increase in Gross Gaming Revenue (GGR) during the second quarter, amounting to €21.5 million. This growth was primarily fueled by a remarkable 42% rise attributed to games of chance, underscoring shifting consumer preferences and behaviors within the online gambling landscape.
Contrasting Trends:
Despite the overall year-on-year revenue growth, the second quarter witnessed a notable setback, with GGR dropping by almost 8% sequentially from €158.6 million. This decline was primarily attributed to a substantial decrease in sports betting activity, shedding light on the sector’s vulnerability to fluctuations in specific gambling verticals.
Fluctuations in Player Registrations:
The quarter-on-quarter analysis revealed a 23% decrease in new player registrations, reflecting a transient dip in consumer engagement. However, when juxtaposed with the previous year’s figures, registrations surged by 9%, indicating a resilient long-term trajectory amidst short-term fluctuations.
Demographic Insights:
As of June 30, 2022, players aged between 25 and 44 dominated the registered player base, constituting approximately 60% of all participants. This demographic insight underscores the importance of targeted marketing strategies tailored to specific age cohorts within Portugal’s online gambling market.
Voluntary Self-Exclusion Trends:
Notably, there was a significant uptick in voluntary self-exclusion during Q2, with nearly 23,000 more individuals opting to ban themselves from gambling compared to the previous quarter—a notable 8% increase. This trend underscores a growing awareness of responsible gambling practices and the effectiveness of self-regulatory measures within the industry.
Regulatory Measures:
The Serviço de Regulação Inspeção de Jogos (SRIJ) remained proactive in its regulatory endeavors, issuing 58 notifications for closure and blocking 34 Internet Service Providers (ISPs) to combat illegal gambling activities. Additionally, the SRIJ took measures to curtail unauthorized online gambling advertising, demonstrating its commitment to maintaining a regulated and transparent gambling environment.
Tax Revenue Generation:
Portugal’s ‘Special Tax on Online Gaming’ (IEJO) yielded €44.9 million in revenue during the second quarter, marking a significant increase of approximately €6.1 million compared to the same period last year. This surge in tax collection underscores the financial contribution of the online gambling sector to Portugal’s economy amidst evolving regulatory landscapes.
The second quarter of 2022 presented a mixed bag of opportunities and challenges for Portugal’s online gambling sector. While witnessing substantial revenue growth and demographic insights, the industry also grappled with fluctuations in player engagement and regulatory concerns. Moving forward, a balance between fostering market growth and implementing robust regulatory frameworks will be imperative to ensure the sustainable development of Portugal’s online gambling landscape.