Portugal’s government has put forward a short-term solution that sees casino license extensions in three main gaming areas, which in turn allows current operators to maintain their casinos until the country sorts out a public tender issue that has been put on hold.

Portugal confirmed short-term casino contracts because the country was still waiting to complete new tenders. The extension reached casinos in the Algarve, Espinho, and Póvoa de Varzim. Current operators could run up to 120 days starting 1 January 2026 or until new companies enter. In the case at hand, Decree-Law No. 139-D/2025 was issued. The Council of Ministers gave their ok to it on the 29th of December 2025 and the Council of Ministers’ Presidency made the announcement. Government officials put forth a special provision. They tried to keep casino operations steady while the tender process approached the final stage. Officials stated they aimed to stop shutdowns across the transition period.

Reasons for the Extension

Casino contracts originally aimed to finish in 2023. They extended two years because COVID-19 caused casino closures and major problems, so the date reached 31 December 2025. More delays came in 2025. Tender progress stopped on 11 March because the parliament dissolved. National elections happened on 18 May 2025. The government had prepared new tenders earlier that year, but entered caretaker conditions.

Caretaker governments lacked the power to approve major tenders, so the process paused. This shifted on 5 June 2025 when the XXV Constitutional Government started. The new government continued concession tasks. It launched tenders in July for new 15-year contracts in the same three areas. Officials said more time was necessary to follow legal steps like qualification, submissions, and bid review. They explained extensions protected casino activity while the required formalities progressed. Portugal also moved to update player engagement with gambling. Mobile and digital casino platforms gained share as customers selected seamless online access across regulated markets.

Public Tenders Now Underway

The tenders were launched as restricted procedures with international publicity and pre-qualification. 5 casino licences sat in this cycle: three in the Algarve, one in Espinho, and one in Póvoa de Varzim. The qualification stage closed on 29 December 2025. Several strong candidates secured places, including:

• Current casino operators.
• Cirsa from Spain backed by US fund Blackstone.
• Spanish group Comar.
• French company Lucien Barrière.
• Canadian group Mercan.

Different deadline rules operated. For Espinho and Póvoa de Varzim, proposal deadlines have already ended. For the Algarve, submissions stayed open until 4 January 2026. After submissions close, proposals may open the next day.

Estoril Sol Leaves Póvoa de Varzim Bid

The extensions applied to all areas, but Póvoa de Varzim already saw a major change. The Estoril Sol group, Portugal’s largest casino company, confirmed it did not send a bid to keep that casino. In a filing to the Portuguese Securities Market Commission, the company said it did not submit a proposal. Estoril Sol will keep operating only under the temporary 120-day period. Meanwhile, the government reviews what appears to be a single proposal. Newspaper Expresso reported on 30 December that only Lucien Barrière submitted a bid. That group runs 32 casinos in France, Egypt, and the Ivory Coast.

Competition Still Active in Espinho and Algarve

Expresso also reported that Solverde is the only bidder for Espinho. This likely puts Solverde in a strong position to retain its licence. The most contested licence is in the Algarve. It covers casinos in Praia da Rocha, Vilamoura, and Portimão, currently held by Solverde. Bidding closed on 4 January. Estoril Sol continues to run its main casinos in Lisbon and Estoril after winning new concessions in 2023. According to its first half 2025 financial report, Póvoa de Varzim earned €17.5 million (US$20.4 million). This is much lower than the €35.6 million (US$41.4 million) earned in Lisbon, making it the group’s smallest operation.

Short-Term Fix, No Impact on Outcomes

The government stated that extensions do not change the results of the tender. They do not adjust any contract terms. The temporary measure only protects public interest. All rules stay the same. Final decisions and awards are expected after 31 December 2025, when existing contracts end. This moment will shape Portugal’s casino market for years to come.