ADVERTISING REGULATION
Gambling advertising in Portugal LUÍS PORTELA DE CARVALHO ASKS WHETHER MORE RESTRICTIVE SELF-REGULATION WILL AVOID EXCESSIVE INTERVENTION BY THE REGULATOR IN THE FUTURE
A growing industry In 2021 Portugal became the 12th European jurisdiction with an online gambling industry valued at over €500 million by market size. Since then it has expanded robustly despite a challenging turnover taxation system for online fixed-odds sports betting and a relatively shallow market comprising a sparse, albeit steadily increasing, number of entrants. The Portuguese online gambling industry has undergone several legal changes to accommodate the growing number of online gambling options available in the market. In Q4 of 2023, the revenue generated by online gambling increased by 16.4 percent year-on-year, reaching €227.4 million. This number was up by 5.6 percent compared to the previous quarter and marked a sixth consecutive quarter of growth. The national gambling regulator, Serviço de Regulação e Inspeção de Jogos (SRIJ), reported that the number of new online gambling accounts created during Q4 of 2023 increased from 237,600 to 319,500 1 . This brought the total number of active accounts to 4.2 million. Alongside this growth comes increased gambling advertising, as operators use various marketing channels to attract customers. However, the proliferation of such advertisements h as raised
concerns about their impact on society, particularly vulnerable individuals and youth. Regulatory authorities in Portugal have implemented measures to govern gambling advertising practices to address these concerns. Despite these efforts, there remains a need for more comprehensive self-regulation within the industry to mitigate the risk of excessive intervention by regulators in the future. Current Regulatory Framework Gambling advertising in Portugal is strictly regulated by the SRIJ, which has comprehensive oversight of all aspects of the gambling industry, including licensing, supervision, and enforcement of regulations. Prior to April 29th, 2015, online gambling was not regulated. This all changed with the passage of the Online Gambling Act (Regime Jurídico dos Jogos e Apostas Online) which, with subsequent amendments establishing a licensing system for online gambling services, sets out detailed guidelines and restrictions on the content, placement, and targeting of advertising. The regulatory framework establishes that
1 Data available at https://www.srij.turismodeportugal.pt/sites/default/files/2024-03/estatisticas_online_4t_2023.pdf
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IMGL MAGAZINE | APRIL 2024
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