iGB E-zines iGB e-zine Portugal | Page 4

Introduction: Playing the long game Introduction: Playing the long game The case for reform of the tax regime may be compelling, but any businesses entering the sector best be prepared for the long haul 4 T his report delves into one of the more challenging and controversial regulated jurisdictions in Europe. Despite having been liberalised in 2015, a high tax regime seen by many stakeholders to have been designed to protect the land-based sports betting monopoly of Santa Casa means the dot.pt market remains the smallest in Europe with a correspondingly low rate of channelisation. That said, the latest data from the regulator Serviçode Regulaçãoe Inspeçãode Jogos (SRIJ) shows an expansion of the market in recent quarters. Those operators and suppliers which have taken the brave decision to enter early and establish themselves will be hoping that an improved economic backdrop to the time of the liberalisation and awareness of the experience in neighbouring Spain, will spur authorities to overhaul or revise the tax regime, acting as a catalyst for the regulated market. Uncertainty as to when this will happen however means any operator entering the market has to be prepared to play the long game, with the associated financial outlay and risks. As Pierre Tournier of the RGA, which commissioned the report into the effect of the tax regime on offshore-onshore channeling explored in this report, points out, these kinds of regimes not only fail to reduce the size of the regulated market but also in achieving public policy objectives typically sought by governments introducing such legislation. There are certainly valid concerns about consumer protection that can be addressed by a higher rate of channelisation to regulated offerings. It is, moreover, a well- trodden route for regulators across Europe and hopes that the Portuguese authorities will eventually see it in the same light are shared by the whole igaming industry. Portugal: The challenges and potential in one of Europe’s most controversial markets