The online sports betting sector, regulated by the Legal Framework for Online Gambling and Betting (RJO), has assumed growing relevance in Portugal, following a global trend of gaming digitalization.
This market, in its essence, reflects a delicate balance between transparency and uncertainty, competition and regulation, risk and consumer protection. Sports integrity emerges as a fundamental pillar but is constantly challenged by the dynamics of a sector where technological innovation outpaces legislation.
Legal Framework
The regulation of online gambling in Portugal was based on Authorization Law no. 73/2014, of September 2, which granted the Government legislative competence to establish a comprehensive legal framework for the operation of online gambling and betting. The RJO clarified the requirements and obligations applicable to operators, ensuring regulated operation and licensing by the Gambling Regulation and Inspection Service (SRIJ). For commercial companies wishing to operate in this sector, compliance with regulatory requirements is essential to ensure their permanence in the market and avoid administrative sanctions, such as suspension or revocation of the operating license, significant fines, and prohibition of activity. For example, the absence of an effective anti-money laundering prevention system can result in severe penalties imposed by the SRIJ, compromising the operator's viability.
The RJO has the following fundamental objectives:
- Ensuring the transparency and integrity of gaming operations: To this end, the RJO requires all licensed operators to comply with strict financial audit requirements and implement real-time betting monitoring systems. Additionally, the regulator imposes the adoption of responsible gambling policies and ethical advertising, preventing misleading practices that could illicitly attract consumers.
- Protecting players and preventing excessive gambling phenomena: Imposing strict betting limits, allowing players to voluntarily set restrictions on their activities, implementing self-exclusion programs, and awareness campaigns.
- Combating fraud and money laundering: Operators are required to implement identity verification systems and report suspicious transactions to the competent authorities.
- Improving international cooperation in combating illegal practices related to online gambling: Portugal participates in international gambling regulator networks, promoting the exchange of information on fraudulent operators and joint strategies to strengthen the fight against sports corruption and illegal gambling.
Financing Sports Activities
Under current legislation, a significant percentage of net revenues from sports betting is allocated to financing sports federations, clubs, and other sector entities. Ordinance no. 314/2015, of September 30, establishes that:
- 37.5% of the revenue from the Special Online Gambling Tax (IEJO) must be channeled to the entities organizing sporting events. The collected IEJO amount is distributed according to the type of competition in which the bets were placed. For national competitions, 85% of this amount is allocated to the clubs or sports companies involved, while the remaining 15% is assigned to the corresponding sports federation to promote the sport.
- When bets are placed on national teams, the entirety of the collected IEJO amount is allocated to the responsible sports federation, ensuring support for the sport. In multisport competitions involving Portuguese missions, the funds are entirely transferred to the Portuguese Olympic Committee, the Portuguese Paralympic Committee, or the Portuguese Sports Confederation, for logistical support and financing of preparation programs. This financing model has supported sports development in various aspects, from training young athletes to modernizing sports infrastructures. The connection between sports betting and sports financing stands as one of the main arguments for maintaining a rigorous regulatory system, ensuring the equitable redistribution of revenues.
Licensing and Regulation
The operation of fixed-odds sports betting, where players try to predict the outcome of sporting events with odds previously set by operators, depends on obtaining a license granted by the SRIJ.
Under article 17 of the RJO, operators must meet strict requirements of suitability, economic, and technical capacity.
Additionally, bets can only be placed on competitions and events listed in the SRIJ-approved list, aiming to prevent illicit practices such as match-fixing. This type of control has proven fundamental to the integrity of sports competitions, allowing detailed monitoring of betting markets and the detection of anomalous patterns that may indicate fraud.
Illegal Betting and Match-Fixing
The phenomenon of illegal betting remains a significant problem, affecting not only the economy and the regulated market but also exposing players to financial and security risks. Illegal operators, without any oversight or control, offer attractive products and often resort to aggressive digital marketing practices, including using influencers to promote their platforms. These influencers, often without adequate knowledge of the legal and ethical implications, promote betting as an easy and quick way to make a profit, enticing mainly a young and less informed audience.
Furthermore, illegal operators operate beyond the reach of regulatory authorities, allowing them to manipulate odds, hinder withdrawals, and exploit players without any legal recourse mechanism. The absence of consumer protection measures makes this problem even more severe, as players have no guarantees regarding the fairness of bets or the security of their personal data.
International studies indicate that around 80% of sports bets globally occur in unregulated markets. In Portugal, combating illicit platforms has been a priority for the SRIJ, which implements site blocking and collaborates with international bodies in suppressing these practices.
Combating match-fixing has been a priority for sports legislators, as evidenced by Law no. 14/2024, of January 19, which established the legal framework for sports integrity and combating unsportsmanlike behavior. The legislator essentially proceeded to the classification of new crimes and the aggravation of the penal framework of others (related to this topic), the creation of entities to ensure the fight against match-fixing, and the expansion of agents subject to the restriction of certain activities.
Conclusion
Online sports betting in Portugal has been consolidating as a regulated sector but continues to face significant challenges. For commercial companies, compliance with regulation, the adoption of responsible gambling practices, and investment in technological security are critical factors for their sustainability.
