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Read Full BioPortugal’s online gaming sector had experienced its first quarter-on-quarter decline in revenues in over three years. But experts say they are unconcerned, indicating that the industry continues to “mature.”
In its quarterly report, the Gaming Regulation and Inspection Service (SRIJ) posted online gambling gross revenues of $335.4 million for the first quarter of FY2025.
This marks a significant drop from a record-breaking high of $379 million posted in the final quarter of FY2024.
Player Registrations Also Down In Q1
The regulatory body has not posted a quarter-to-quarter fall in revenue since back in mid-2022. This latest fall was the largest percentage drop (at 12%) since 2018.
The quarter also saw a quarterly drop of almost 15% in new player registrations.
This all resulted in a 4% quarterly drop in revenues from the nation’s online tax levy, the Portuguese media outlet Eco reported.
Despite the surprise fall, the revenues still make for a 9% year-on-year compared to Q1 of 2024.
Portuguese Gaming Revenues: Unfavourable Sports Results to Blame?
One of the biggest falls came in the online sports betting category, where revenues dropped by 17%. This category has not seen such a big quarter-over-quarter fall since 2022.
The Portuguese Association of Online Betting and Gaming (APAJO) confirmed that a “reduction in the volume of sports betting” was to blame for the broader slowdown.
Volumes dropped by 13% year-on-year and 6% compared to the previous quarter. Gross casino revenues, by contrast, grew by 6% compared to the first quarter of 2024.
However, even this sector experienced a wider drop, falling by 8% year-on-year.
The APAJO was stoical. It pointed out that the margin in fixed-odds sports betting had been “well above average.”
And it said that much was “dependent on the sporting results which in the first three months of the year will have been more unfavourable to Portuguese bettors.”
Shutting Down Illegal Operators Still A Focus
APAJO President Ricardo Domingues said that the first quarter saw “a slowdown in some sectors and even a contraction in others.”
However, Domingues said the drop was a “natural” phenomenon in “market that is still maturing.”
He added: “Our main concern remains being able to absorb demand in the face of the threat from illegal operators.”
Indeed, the report makes mention of regulatory efforts to shut down illegal operators. It said that the authorities have blocked 129 illegal gambling operations in Q1 of FY2025.
Police and courts also ordered 54 operators to shut down in the same period.
Young Bettors Dominate Portuguese Market
The report also showed that the vast majority of Portuguese sports bettors (over 71%) wager on soccer (football) games, with tennis a distant second with 16%.
Online slots, meanwhile, dominate the casino sector, representing almost 80% of the total volume of casino bets.
Most Portuguese bettors tend to be aged under 35, the figures indicate. Almost a third of new registrations came from people aged 18 to 24. And over a third of the total number of people with betting accounts in Portugal are aged 24-34.
Last year, the regulator posted a report showing that revenue from land-based operations decreased year-on-year during Q2 of FY2024.
