All types of gambling activities are permitted in Portugal at the moment, but their development is subject to a strict authorization, concession, or licensing regime. These are based on gaming type and the environment in which it is offered (land-based or online). Our experts in company formation in Portugal can help you during the entire process of opening a gambling business.
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How to open a gambling business in Portugal?
From a legal perspective, opening a gambling business in Portugal involves two distinct stages: company establishment and obtaining the required licenses. A company can be established in two main legal forms of operation:
- Lda (Limitada) – private limited liability company (sociedade por quotas), in which the minimum value of each “quota” is 1 EUR;
- S.A. (Sociedade Anonima) – public limited company/ joint-stock company, in which the minimum capital is 50,000 EUR;
During the establishment phase, the entrepreneur will need, among other things, a tax identification number (NIF – Numero de Identificacao Fiscal) and the registration of the company in the commercial register. The time needed to open a company can vary based on individual conditions, but the procedure can be streamlined with the support of our company formation specialists in Portugal. They will accompany you in every step of the procedure and overcome any difficulties you may encounter when dealing with such an activity.
In addition to the general steps necessary to open a company in Portugal, in order to run a gambling activity, it is mandatory to obtain a license for operation.
What is the state of play of gaming activities in Portugal?
The gambling industry in this country is thought to be very promising for investors, but the Portuguese regulatory framework is not “relaxed” in a juridical sense when compared to other European jurisdictions.
Practically, Portugal applies a model of controlled regulation, with limited access to the market and strict technical, financial, and conformity requirements, including obligations on consumer protection, for prevention of money laundering (AML – Anti-Money Laundering), and, where appropriate, combating the financing of terrorism (CFT – Counter-Terrorism Financing).
Which authorities are responsible for regulating gambling?
In Portugal, gambling activities are regulated by the Gambling Regulation and Inspection Service (SRIJ – Serviço de Regulação e Inspeção de Jogos), which operates within Tourism of Portugal, the national public institution in charge of Portuguese tourism policies. This authority monitors, inspects, and regulates land-based games of chance (casino games, bingo, slot machines, and poker) and online gambling (these are games of chance, pari-mutuel and fixed-odds horse racing bets, and so on).
In addition, the Gambling Regulation and Inspection Service (SRIJ) issues licenses for online gambling and bets, monitors gambling operators, and publishes the list of licensed operators. In the online environment, licenses can be obtained for fixed-odds sports betting, online bingo, and certain types of online casino games. SRIJ is also the public entity that applies sanctions to operators who do not comply with the legal provisions regulating the gambling activities.
Social games, which are run by the state (lotteries, land-based pari-mutuel horse betting, and others), are operated by the Lisbon Holy House of Mercy (SCML – Santa Casa da Misericórdia de Lisboa), through its specialized Games Department.
What licenses are required for gambling activities in Portugal?
There are two types of licenses that any gambling operator should have, depending on the kind of activity they choose – land-based or online gambling.
When it comes to casinos and bingo halls, land-based gambling operators have to attend a public tender procedure in order to obtain a license.
In practical terms, exploitation of casino games and bingo is not possible through a simple standard administrative license, but through a title granted based on legal provisions and the applicable public documentation. Moreover, the licenses are concessions for legally defined geographical areas.
Several licenses (eg, for casino games, bingo, slot machines, and poker) can be obtained; however, a single license covers only a certain geographic area. The validity of each license is limited and regulated.
When it comes to online casinos, pari-mutuel or sports bets, the licenses are issued directly by the Regulation and Inspection Service (SRIJ), with a validity of approximately 3 years from the date of issuance.
What are the eligibility criteria for the gambling license in this jurisdiction?
To be eligible for a land-based gambling license in Portugal, the operator has to:
- Be a legal entity in the EU/EEA, usually in the form of a private limited liability company or a public limited company;
- Be compliant with the administrative norms with regard to taxation, anti-money laundering, and counter-terrorism financing, including KYC (Know-Your-Customer), transaction monitoring, and responsible gaming measures.
Legal entities that are not registered in Portugal must have a branch or a fiscal representation in the country, too, in order to be able to obtain this type of license.
For foreign operators, the aspect of local presence must be verified on a case-by-case basis depending on the activity segment, licensing documentation, and type of concession or license sought.
What limitations are placed on customers of gambling activities in Portugal?
Land-based gambling activities in Portugal, namely games of chance (casinos and bingo halls), have to respect the following restrictions placed on their customers:
- The minimum age for entering these facilities and playing is fixed at a minimum of 18 years (legal requirement);
- The limitation and prohibition on certain individuals from attending the gambling activities is based on the fact that these individuals have positions of responsibility in public authorities;
- The limitation and prohibition for entering these facilities and playing for individuals who are self-excluded or banned from gambling by the authorities or by a court decision;
- The limitation and prohibition of persons who are employed by casinos from taking part in the game;
- Other limitations.
In addition to these rules, the Portuguese system also emphasizes responsible gaming measures, including online self-exclusion and access control to licensed operators.
If you need further details on the gambling laws and regulations in Portugal, or for help in setting up a company in Portugal, please get in touch with us.