Portugal’s online gambling industry now shows less growth, after several years of rapid expansion. In Q1 2025, Portugal’s online gambling gross revenue decreased compared to the previous quarter for the first time in almost three years, and the market is now flat after a period of steady expansion. The Gaming Regulation and Inspection Service recorded online gambling gross revenue at €284.7 million ($335.4 million) for the quarter, 9% higher year-on-year, mainly because the sports betting margin reached 23% for Q1.

But, this figure dropped from the record €323 million in Q4 2024. The market experienced a quarter-on-quarter decline for the first time since Q2 2022, with a 12% drop marking the most significant decline from a prior quarter since 2018. Revenue from online casinos accounted for 60% of the total at €169.7 million, representing a 6% year-over-year increase but an 8% decline from the previous quarter. Online sports betting generated €114.9 million, a 14% increase from the same quarter last year. However, this represented a 17% decline compared to the previous quarter, marking the most significant drop in the segment since 2022.

Market Developing

Ricardo Domingues, board chairman of the Portuguese Online Betting and Gambling Association (APAJO), said that slower growth in the market is “something natural in a market that is maturing.” He added that their main goal remains handling demand, mainly due to competition from illegal operators. The number of active online gambling accounts in Portugal rose by 7% from the previous quarter to reach 4.8 million. Portugal’s government earned €82.7 million from online gambling taxes during the quarter, an amount APAJO said matches the Environmental Fund target.

More than a Decade in Business

Portugal’s regulated online gambling industry has been operational for over ten years, following the passage of laws in April 2015. There are 30 license holders, with 13 for online sports betting and 17 for online casinos. For 2024, the industry’s gross revenue was €1.11 billion, showing a big increase from €845 million in 2023.