Gambling legislation in Portugal has been a widely discussed topic over the last couple of months but it looks like the tax imposed on the turnover generated via sports betting was a subject to a great number of heated debates and disagreements.
However, it became clear that despite the criticism, there is no chance for the tax to be reviewed and reconsidered by Portuguese authorities.
People with knowledge on the matter confirmed that in case gambling officials take actions towards amending the existing regulations and opting for the taxation method, based on the amount of the gross gambling revenue, things will get really complicated.
The proposal will have to receive legislative authorization, which will therefore, change the boundaries in which the members of the government can regulate the sports betting activities.
In other words, the government is unable to change the taxation method. What is more, the legislative authorization has been publicly discussed and such an important move like the taxation change is almost impossible to happen.
Portugal was among the European countries which made serious attempts towards gambling legislation. Actually, the country has never been closer to approving of a gambling legislation bill.
Expectedly, local players were delighted to know about the legislation idea but the tax, varying between 8% and 16% imposed on total betting stakes instead on gross gambling revenue, made local communities discontent.
In point of fact, the latest reports show that not only players but also the state will lose from the stakes-based taxation method. Choosing the gross gaming review taxation will contribute up to €20 million.
In case regulators continue applying the current taxation method, there is a probability for many operators to give up on entering the Portuguese gambling market. Prominent market analysts pointed that if Portugal wants its gambling sector diversified, the gambling authorities should think of an alternative, which makes both players and operators happy.
Despite the fact that there is no chance for a new taxation method to be implemented anytime soon, the affected sides remain hopeful that sooner or later, Portuguese gambling officials will come to terms with the fact that significant changes need to take place so the local gambling sector is kept competitive and profitable.
For the time being, Portugal is enabled to make the law come into force since the standstill period ended a few days ago. Despite the pessimistic prognosis, the framework is believed to be implemented within a couple of months.
