Having produced the likes of Luis Figo, Eusebio, and Christiano Ronaldo, Portugal is undoubtedly a soccer-rich nation. Besides the individual brilliance of Portuguese players, the national team has also been successful, winning the 2016 European Championship and the 2019 Nations League.
Of course, “money answereth all things,” even in football, and Portugal, to a large extent, owes its soccer glory to funding from gambling revenue.
Gambling, particularly online gambling business, continues to gain traction in Portugal with many people entering into the industry almost every day. The eagerness of citizens to start online gambling business and gamblers’ terrific interest in teams and players explains why the industry has been raking in millions of euros yearly.
The Portuguese government’s body language about gambling is aptly captured in the 2015 Decree, an excerpt quoted below.
“Gambling is an undeniable reality against which no amount of repression can help. Prohibition can potentially cause individual, family and social harm.”
Just in the first quarter of 2021 alone, the industry raked in €125m, according to Serviço de Regulação e Inspeção de Jogos (SRIJ), the country’s gambling regulators. This revenue represents an 81.9% increase from what was realized within the same period a year earlier.
Fun Fact: Sports betting accounts for 54% of Portugal’s gambling revenue in 2021. This amounts to €67.5m out of the €125m.
Pros of Gambling Revenue on Portuguese Soccer
Whether you are an aspiring operator itching to know how to start a gambling business online or a football fan that is just curious about updates, know how the Portuguese Soccer benefits from the millions made through gambling below
1. Taxation and Redistribution
Anyone running an online gambling business in Portugal is expected to pay between 8% and 16% of their turnover as tax. The exact percentage depends on the type of bet and the size of the business.
Once remitted, the government distributes the revenue to its ministries and agencies, including the Portuguese Football Federation (FPF). This allocation allows the NPF to embark on developmental projects that seek to transform Portuguese soccer’s global outlook.
Fact: FPF collects the largest share of Portugal’s gambling revenue, which is 34.5%
2. Sponsorship and Advertisement
Like in other climes, operators of online gambling business in Portugal partner with clubs and competitions for mutual benefits. While the brands enjoy great visibility and recognition, the teams and competitions receive significant financial support in rewards.
A ready example of this partnership is one between Betano and Primeira Liga. The former is a Portuguese gambling company while the latter is the top division of the nation’s soccer. Many clubs are able to meet their financial obligations to players, coaches, and staff through the funding that comes from these partners.
When fans discover that a gambling company is their team sponsor, they tend to register with it. That way, the popularity and revenue of the company also increases.
As a Portuguese soccer fan, choosing a gambling site to play can be challenging due to the many options available. You don’t necessarily have to pitch tents with your club’s sponsor but it’s critical you look for sites where you can start to play small. Why start with a hefty deposit casino brand when you have yet to master the intricacies of the game?
Cons of gambling revenue on Portuguese soccer
Ensuring that operators and other stakeholders in the industry play according to the rule is the greatest challenge of this revenue source. Although the SRIJ is doing a great job at enforcing rules through its licensing procedures, there is always the question of transparency, match-fixing, and the existence of illegal bets, which tends to discredit the whole scheme.
Apart from this, the uncertainty around casinos - no matter how promising it may be - puts a big dent in its reliability and sustainability as a funding source for Portuguese soccer. Factors that determine gambling revenues are mostly non-predictable and dependent on the prevailing economic situations of the people.
As such, it’s not a reliable way to financially support Portugal’s soccer budget.
Conclusion
You’ve just read a mini guide on how to start a gambling business in Portugal if you are an aspiring operator. From the ever-interested fans to a relatively welcoming regulatory environment, the stage seems set for willing investors.
While the future prospect of gambling revenue is not clear, there is no doubt that currently, Portuguese football benefits immensely from the partnership. SRIJ must continue to keep its eyes open to clamp down on any irregularity in the sector.
