PORTUGAL Law and Practice Contributed by: Pedro Cortés and Luís Portela de Carvalho, Lektou
• Under the Gaming Law (Decree-Law No 422/89), fines range from EUR2,500 to EUR100,000, depending on the seriousness of the offence. • Under the RJO, fines for very serious breaches may reach EUR1 million, and may be accompanied by suspension or revocation of the licence. Administrative penalties are enforceable through administrative execution procedures, and failure to pay may result in non-renewal or suspension of the authorisation. Criminal fines (in lieu of imprisonment) are applied through the Penal Procedure Code and enforced judi- cially following conviction. Portugal applies distinct fiscal regimes to land-based concessions and online operators, combining special gaming taxes with corporate and social-fund obliga- tions. Land-Based Casino operations function under a concession-spe- cific fiscal model comprising: • an upfront entry contribution, payable at the sign- ing or renewal of the concession; • an annual fixed contribution, representing a base fee linked to zone, property scale, and minimum investment commitments; and • an annual variable contribution, calculated as a percentage of GGR generated during the conces- sion year. The precise structure is defined in each concession contract and varies across gaming zones (Estoril, Espinho, Póvoa de Varzim, Algarve, Figueira da Foz, Tróia, etc). 12. Tax 12.1 Tax Rate by Sector
Depending on zone and revenue tier, the effective burden (fixed + variable) may range from 20% up to approximately 50% of GGR. The 2025 tenders for the Espinho, Algarve and Póvoa de Varzim zones confirmed the continuation of this model, adjusting fixed and variable components to reflect tourism-investment, employment and social- development commitments. Concessionaires may also make annual social and tourism contributions, channelled to local cultural and tourism projects. Under the concession system, the government may authorise partial deductions or reductions of the vari- able component where operators invest directly in approved non-gaming facilities or community pro- grammes. These adjustments are verified by SRIJ. Certain tour- ism-fund payments may likewise be offset against qualifying cultural or infrastructure expenditures. Bingo concessionaires are subject to stamp duty of 25% on each card sold. Online Under the RJO, licensed operators are liable for the IEJO, distinct from corporate taxation. The IEJO applies as follows: • games of fortune and chance (eg, slots, roulette, blackjack, poker) ‒ 25% of GGR; • fixed-odds sports and horse betting ‒ 8% on turno- ver; • pari-mutuel horse betting ‒ 25% of GGR; and • peer-to-peer poker and bingo tournaments ‒ 25% on rake or entry fees. The IEJO is reported and remitted monthly through the SRIJ’s real-time monitoring system.
399 CHAMBERS.COM
Powered by FlippingBook