Portugal’s leading gambling trade organization has raised serious concerns about the growing influence of illegal gambling operators, warning of an “imminent danger to user safety.” This warning follows the release of the Portuguese Online Gambling and Betting Association’s (APAJO) latest survey, which highlights the nation's struggle to curb illegal gambling activities.
’’APAJO, whose members include Betclic and Bwin, has previously filed criminal complaints against social media influencers promoting illegal sites.’’
The 2024 APAJO annual study has uncovered a troubling trend: 41% of Portuguese players are engaging with unlicensed gambling platforms. This issue is particularly pronounced among younger demographics, with more than half (52.1%) of those aged between 18 and 34 opting for illegal gambling sites.
The Appeal of Unlicensed Platforms
APAJO, which counts major operators like Betclic and Bwin among its members, has long been at the forefront of the fight against illegal gambling in Portugal. The association has even taken legal action against social media influencers promoting these unregulated platforms. The 2024 study reveals that players are drawn to unlicensed operators primarily due to the higher bonuses, better odds, and a broader selection of games offered. On the other hand, those who prefer licensed platforms cite security (61.3%) and superior customer support (37.3%) as their main reasons.
Despite a strong awareness of the legal framework—around 90% of respondents knew it is illegal to offer gambling services without a license—unlicensed operators still rank alarmingly high among the nation’s top 15 online gambling platforms. APAJO has identified four illegal operators within this group, further underscoring the scale of the challenge.
A Call for Unified Action
Ricardo Domingues, president of APAJO, has called for a collaborative effort between licensed operators, legislators, and regulators to increase the channelization rate—the proportion of gambling activity occurring on licensed platforms—to at least 80%. He emphasized the "imminent danger to user safety" posed by illegal platforms, which operate outside of any consumer protection regulations and avoid paying taxes.
“At this moment, illegal operators are mostly shady projects that blatantly try to exploit the ease with which they can reach Portuguese audiences while avoiding all consumer protection rules and paying taxes.”
Domingues said. “This type of organisation puts players at all kinds of risk, from their balances to their personal and financial data and they even engage in predatory behaviour towards vulnerable audiences.“
Increased Spending Among Illegal Gamblers
The Portuguese Online Gambling Habits 2024 study expanded its sample size to 1,000 participants, providing a comprehensive overview of the current landscape. The study distinguished between those who gamble with licensed operators and those who engage with illegal ones. The findings revealed that 71.5% of respondents claim to spend up to €50 ($54.90) per month, with most spending less than €25. Among those who only gamble with licensed operators, 77.6% spend under €50 monthly. However, APAJO pointed out that the proportion of users in the highest spending categories is “substantially higher” among those who bet with illegal operators.
Regarding responsible gaming tools, 78.2% of players are aware of their availability at licensed platforms, and 43.3% have either used or are currently using them. These tools are crucial to the regulated gambling environment, providing players with mechanisms to manage their gambling habits and avoid potential harm.
The Cost of Illegal Gambling
Domingues also highlighted the significant financial impact of illegal gambling, noting, “We must also not forget the tax revenues that are lost, which we estimate to amount to be more than €100m. It would be crucial to prevent these operators from promoting themselves through social networks, influencers and sponsored articles in the Portuguese media and from offering payment methods such as Multibanco and MBWay.”
He stressed the importance of preventing these illegal operators from promoting their services through social media, influencers, and sponsored content in the Portuguese media.
He also called for a ban on offering local payment methods like Multibanco and MBWay, which would make it easier for Portuguese players to engage with these unlicensed platforms.
In its ongoing battle against illegal gambling, APAJO has filed several criminal complaints, including against influencer Cláudia Nayara earlier this year. These complaints target individuals promoting unlicensed operators via affiliate links, profiting from activities undermining the regulated market.
Ongoing Efforts to Promote Responsible Gambling
Last year, APAJO launched the “My Game is Serious” campaign to encourage responsible gambling practices. This initiative saw widespread participation from influencers, helping to raise awareness about the importance of playing on licensed platforms.
Meanwhile, Portugal's legal online gambling market thrives, with revenue records set in consecutive quarters for over a year. However, the rise of illegal gambling poses a significant threat to the sustainability and safety of the regulated market.
Source:
''Richard Mulligan, Portugal’s Gambling Trade Group Calls for Action on Illegal Market'', igamingbusiness.com, August 15, 2024.
