Study: Two in five Portuguese gamblers bet with illegal operators
Trade body labels situation an “imminent danger” as research suggests four of the largest 15 B2C firms in the Iberian market are unlicensed
A study from the Portuguese gambling trade body has revealed that 41% of those who gamble in the country do so with unlicensed operators.
The figure has been published as part of the Portuguese Association of Online Betting and Gaming (APAJO) annual study into betting behaviours in Portugal.
As part of the APAJO’s annual study, Online Gambling Habits of the Portuguese, the body determined that despite the high rate of black-market activity, 90% of players are aware a licence is required for a company to offer gambling in Portugal.
Of the top 15 most popular gambling operators in the country, which saw its gambling market regulated in 2015, four are offering services without a licence.
According to the APAJO, those businesses are bet365, 1Xbet, 22Bet and Bet Tilt.
Notably, the number of players who exclusively use licensed operators has fallen below the high of 60% that was recorded in 2022.
In terms of how APAJO conducts its research, the group identifies which players prefer licensed operators and which prefer unlicensed, before asking separately whether they bet with unlicensed operators at all.
Of the participants surveyed, 37.7% admitted to gambling with an unlicensed, illegal operator.
The remaining 62.3% said they did not gamble with offshore firms or they weren’t sure if they did.
The APAJO noted that as much as €100m in potential tax revenue is lost as a result of unlicensed operators.
When it comes to the reasons behind why black-market operators are so appealing to some players, the study revealed some the key factors to be higher bonuses, higher odds and a wider portfolio of games.
Players who do use illegal platforms also revealed some traits that unlicensed operators possess that they would like to see licensed providers take on, such as a greater offer of sports betting, virtual sports and live casino.
The study also showed that of those players gambling with black-market operators, 71.5% wager up to €50 per month.
However, that figure is further broken down, with 42.2% of respondents wagering less than €25 and 29.3% betting between €25 and €50.
Respondents in the study said the vast majority of illegal operator advertising came through social media, with Google searches and word of mouth also driving customers to the black market.
Ricardo Domingues, APAJO president, said: “Illegal operators are mostly shady projects that ostensibly try to exploit the ease with which they can reach Portuguese audiences while avoiding all consumer protection rules and paying taxes.
“This type of organisation puts players at all kinds of risks, from their [bank] balances to their personal and financial data, and they even engage in predatory behaviour with vulnerable audiences.”
Domingues also argued for social media advertising blocks against offshore firms and for payments companies to refuse to work with unlicensed operators.