As of 16 September 2026, the Portuguese Tax Authority (Autoridade Tributária) has reportedly lost an estimated €118 million in tax revenue due to illegal online gambling activity during 2025, according to figures released by the Portuguese Association of Online Gambling Operators (APAJO). This shortfall represents roughly one-third of the total Imposto Especial de Jogo Online (Special Online Gambling Tax) that should have been collected. In 2025, the legal online gambling market generated over €23 billion in total betting volume, yielding €353 million in tax revenue. However, the persistent presence of unlicensed operators continues to erode the tax base, marking the second consecutive year of significant revenue leakage. The situation underscores the challenges of enforcing digital tax compliance in a cross-border environment and raises questions about the effectiveness of current licensing and blocking mechanisms.
Key Takeaways
- Revenue Leakage Persists: The Tax Authority lost approximately €118 million in 2025, equivalent to a third of the expected Special Online Gambling Tax collection, highlighting the scale of the illegal market.
- Market Size and Tax Yield: Legal operators processed over €23 billion in bets, contributing €353 million in taxes, but the parallel illegal market remains substantial enough to dent public finances significantly.
- Policy Implications: The recurring loss may prompt regulators to strengthen enforcement tools, such as more aggressive IP blocking, payment blocking, and international cooperation to target offshore operators evading Portuguese tax law.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement