Back

 

Material scope of games of chance

The SB Proposal provides for the extension of the material scope of the Special Tax on Online Gambling ("IEJO") to games of chance, through the inclusion of the commissions charged to players by the operating entities in the gross revenue obtained by these entities. Currently, the gross revenue only includes the amount resulting from the deduction of the amount granted in prizes from the total amount of bets placed.

 

Rates

The SB Proposal changes IEJO rates applicable to:

  • games of chance and parimutuel betting on horse racing - a flat rate of 25% on the operator's gross revenue is envisaged, instead of the progressive rates currently in force (which range from a minimum of 15% to a maximum of 30%, depending on the operator's annual gross revenue);
  • sports betting on odds and horse race betting on odds - a flat rate of 8% is to be applied to the revenue from the amount of bets placed, instead of the progressive rates currently in force (which range from a minimum of 8% to a maximum of 16%, depending on the amount of bets placed with the operator).

With this elimination of the progressive IEJO rates:

  • The operators of games of chance and parimutuel betting on horse racing, whose annual gross revenue is less than EUR 5 000 000, will suffer an increase of 10 percentage points in the IEJO rate applicable to them, while other operators may be subject to an IEJO rate lower or higher than that currently in force (depending on the volume of annual gross revenue generated);
  • Operators of sports betting on odds and horse racing betting on odds, where the amount of the bets placed exceeds EUR 30 000 000, will benefit from a tax relief of up to 8 percentage points on the IEJO rate applicable to them.

The SB Proposal also provides for an increase from 15% to 35% in the fixed rate applicable to the commissions charged by the operators of sports betting on odds and horse racing betting on odds in which players play against each other, in cases where such commissions are the only income directly resulting from such exploitation.

 

Reassessment of the online gaming and betting tax system

The SB Proposal foresees the reassessment of the tax regime of online gambling and betting within two years from the entry into force of the changes, which will be carried out by the Serviço de Regulação e Inspeção de Jogos do Turismo de Portugal, I.P..