It seems like the lack of a unified taxation system in online gambling products has made the Portuguese to opt for international sites as opposed to the local licensed ones, according to a recent statement of The European Gaming and Betting Association (EGBA). The Association’s point was backed by a study made by the Universidade NOVA de Lisboa together with Qdata. What the study concluded to was that 75% of online gamblers chose to play on offshore sites in 2018, as opposed to the ones licensed in Portugal. That percentage signalled a 10% increase compared to 2017 stats.
According to the Portuguese gambling regulation system as it stands now, sports wagers online are taxed 8%-16%, whereas online casinos are taxed on GGR (15%-30%). The EGBA believes a flat GGR tax on both casinos and betting sites would be the best option here and would ensure that players do not resort to international sites, as local sites would be able to offer better odds. The Association added that the regulatory system is already in place to allow operators that want to acquire a license to do so. The only thing missing is a unified tax system that will attract more operators to go legal and get a license.
Investigations regarding the gambling taxation system and whether it contributes to players resorting to unlicensed sites had been funded by the government to an independent company back in 2016. These investigations have gone through many delays though and are still ongoing waiting for a final evaluation to be delivered.