Gross revenue from online gaming in Portugal has fallen for the first time in almost three years. The decline occurred in the first quarter of 2025, compared to the previous quarter, with the market showing signs of stabilization after consistent growth.
Data published by the Gambling Regulation and Inspection Service (GIO) showed gross online gaming revenue of €284.7 million ($335.4 million) in the quarter. That figure represents a 9% increase on the previous year, driven by sports betting margins, which were 23% in the quarter.
The growth phase of online games loses momentum
However, the total was below the record €323 million recorded in Q4 2024. It is the first time the market has reported a quarterly decline since Q2 2022. At that time, at 12%, it was the largest percentage drop compared to a previous quarter since 2018.
Gross revenue from online casinos accounted for 60% of the total, at €169.7 million, up 6% year-on-year. However, there was an 8% decrease compared to the previous quarter.
Gross revenue from online sports betting also saw a modest increase, with €114.9 million (+14%) compared to the same period last year. However, this total was down 17% from the previous quarter, marking the largest quarterly drop in the sector since 2022.
Maturing market
Ricardo Domingues, chairman of the board of directors of the Portuguese Online Gaming and Betting Association (APAJO), the sector’s trade union, said that signs of market slowdown are “natural in a maturing market. We are facing these changes calmly and our main concern continues to be to absorb demand in the face of the threat from illegal operators,” he said.
Despite the decline in gross revenue, the number of active online gaming accounts in Portugal increased by 7% compared to the previous quarter, to 4.8 million.
Portugal’s government collected €82.7 million in taxes on online gambling in the quarter, which APAJO said was in line with the government’s target for its Environmental Fund.
10 years of operation
Portugal’s regulated online gaming market has existed for over a decade. Online gaming was first enacted into law in the country in April 2015.
Since then, the market has grown to 30 licensees, 13 in online sports betting and 17 in online casinos.
Last year, the market generated gross revenue of €1.11 billion, a considerable increase from the €845 million recorded in 2023.