Portugal’s online gambling sector experienced its first quarter-on-quarter decline in gross revenue in nearly three years, signaling a potential plateau after a long period of uninterrupted growth. While year-on-year figures remain positive, data for Q1 2025 suggest the market may be entering a phase of consolidation.

According to the Serviço de Regulação e Inspeção de Jogos (SRIJ) [pdf], gross online gambling revenue reached €284.7 million in the first quarter of 2025. This represents a 12% decline from the previous quarter’s record of €323 million but still reflects a 9.1% increase year-on-year compared to Q1 2024.

The drop ends a 10-quarter growth streak and marks the largest quarterly contraction since 2018. Online casino activity accounted for the majority of the revenue at €169.7 million, down 8.1% quarter-on-quarter but up 5.9% from the same period last year. Sports betting brought in €114.9 million, falling by 16.9% compared to Q4 2024, though still rising 14.4% year-on-year.

This trend follows a record-setting 2024 when the Portuguese online gambling market passed €1.11 billion in annual revenue, marking a 42% jump from 2023.

Market Activity Remains Strong

Despite the dip in quarterly revenue, player engagement continues to rise. The number of active gambling accounts climbed to 4.8 million, a 7% increase from Q4 2024. However, new registrations declined by nearly 15% compared to the previous quarter, even as the total player base expanded.

About 1.2 million accounts were active in actual play during Q1 2025, up 6.8% year-on-year. Of these, 34% played only online casino games, 23.1% focused on sports betting, and 42.8% participated in both categories.

Self-exclusion also rose significantly, with 309,100 player accounts voluntarily blocking access to gambling platforms, a 30.9% year-on-year increase and a 5.7% rise compared to Q4 2024.

Betting Trends and Preferences

In terms of player behavior, football dominated sports betting, making up 71.2% of all wagers in the category. Tennis and basketball followed with 16% and 9.2%, respectively. Within football, the Portuguese Primeira Liga and UEFA Champions League were the most bet-on competitions.

As for online casino games, slot machines continued to dominate, representing 78.2% of total casino bets. Other favorites included Banca Francesa (6.5%), French Roulette (5.7%), Blackjack (4.6%), Crash-style games (3.4%), and Poker variants (1.6%).

The total amount wagered on online casino games was €4.67 billion, down 9.4% from the previous quarter but up 7.2% year-on-year. In contrast, sports betting stakes fell to €501.9 million, reflecting a 12.5% drop compared to Q1 2024.

Tax Collection and Enforcement Efforts

The Portuguese government collected €82.7 million in gambling taxes during the quarter, slightly below the amount collected in Q4 but aligned with environmental fund targets.

Authorities continued their crackdown on illegal gambling, issuing 54 takedown notifications, initiating 5 legal proceedings, and ordering 129 site blocks in Q1 alone. Since the online gambling framework was introduced in 2015, over 1,425 illegal operators have been targeted, and 2,391 websites have been flagged for blocking.