APAJO Urges Swift Action Against Unlicensed Gambling in Portugal

APAJO Calls for Urgent Crackdown on Unlicensed Gambling in Portugal

In a bid to protect consumers and safeguard the integrity of the Portuguese gambling market, the Portuguese online gambling and betting trade association, APAJO, has issued a stark warning about the growing prevalence of unlicensed gambling platforms in the country. This alarming trend not only endangers users but also undermines licensed operators and the nation’s tax revenue. APAJO’s call to action highlights an urgent need for regulatory intervention to curb this escalating problem.

Unlicensed Gambling on the Rise

According to the latest Portuguese Online Gambling Habits Survey for 2024, conducted by APAJO, an alarming 41% of Portuguese players are engaging with unlicensed gambling platforms. The situation is even more dire among younger players, with 52.1% of those aged 18 to 34 admitting to using these illegal sites. Despite 90% of the survey’s 1,000 respondents acknowledging that it is illegal to gamble on unlicensed platforms in Portugal, the allure of higher bonuses, better odds, and a wider variety of games continues to draw users away from licensed operators.

Safety and Financial Risks

Ricardo Domingues, President of APAJO, expressed grave concerns over the safety of users engaging with these unregulated platforms. He emphasized that unlicensed operators are not bound by the stringent consumer protection rules that govern licensed platforms, leaving users vulnerable to a host of risks, including the potential loss of funds and exposure to data breaches.

“These operators are not only undermining the legal framework but are also exploiting Portuguese players by sidestepping consumer protection regulations and avoiding taxation,” Domingues warned. “This predatory behavior, especially towards younger and more vulnerable audiences, represents an imminent danger to user safety.”

Economic Impact and Regulatory Challenges

The unchecked growth of unlicensed gambling platforms also poses a significant economic threat to Portugal. APAJO estimates that the country loses more than €100 million annually in tax revenues due to illegal gambling activities. This substantial loss not only affects public finances but also the competitiveness of licensed operators, who are bound by tax obligations that their unlicensed counterparts evade.

Domingues urged a collaborative effort between licensed operators, lawmakers, and the national gambling regulator to address this issue head-on. He stressed the importance of achieving a channelization rate— the percentage of gambling activity conducted through licensed platforms—of at least 80%. Currently, the dominance of unlicensed operators, with four such entities ranking among the top 15 most-used gambling platforms in Portugal, reflects a critical failure in channeling users towards safe and legal options.

Call for Immediate Action

To combat this growing threat, APAJO has taken proactive steps, including filing criminal complaints against social media influencers who promote unlicensed gambling sites. Domingues called for stricter enforcement of regulations that prevent these illegal platforms from leveraging social networks, influencers, and media outlets to advertise their services. Additionally, he advocated for the removal of payment options like Multibanco and MBWay from these sites to further restrict their operations.

The rise of unlicensed gambling in Portugal is a multifaceted issue that threatens both consumer safety and the financial stability of the nation’s regulated gambling market. APAJO’s urgent call for action underscores the need for comprehensive regulatory measures to curb the influence of illegal operators and ensure that the benefits of a well-regulated market—such as player protection and tax revenue—are not compromised. The Portuguese government, along with industry stakeholders, must act swiftly to address this growing concern before it further undermines the integrity of the country’s gambling industry.