Pedro Miguel Garcia, Country Manager for Portugal at BacanaPlay, believes the Portuguese iGaming market still has ‘significant room for growth’ through areas such as product evolution and innovation.
Garcia spoke to iGaming Expert ahead of his appearance later this month at the SBC Summit in Lisbon on the panel titled ‘Portugal’s Gambling Evolution: Growth, Pressure and New Opportunities’.
On Portugal, Garcia said we’ve seen consistent growth in gross gaming revenue and the competitive landscape over the past few years as new operators continue to enter the market, highlighting the country’s attractiveness, ‘even with a relatively high tax burden, particularly on sports betting’.
However, he doesn’t believe growth will simply come from more operators entering the market over the next five years; he thinks the biggest opportunity will come from product evolution and innovation.
Garcia noted: “Portugal is still a relatively restrictive market when it comes to certain products and features that are already established in other regulated European markets. If the regulatory framework continues to evolve and allows products such as Live Casino, as well as greater innovation within existing verticals, that could unlock a new phase of growth.
“So, for me, the opportunity is less about expanding the number of players in the market and more about expanding what licensed operators are able to offer them — while maintaining strong standards around player protection and responsible gambling.”
“If the regulatory framework continues to evolve and allows products such as Live Casino, as well as greater innovation within existing verticals, that could unlock a new phase of growth.”
Pedro Miguel Garcia, Country Manager for Portugal at BacanaPlay
As for which products could thrive, Garcia believes online casino will continue to bring variety, especially given it represents ‘approximately 63% of total online GGR in Portugal, compared with around 37% for sports betting’.
Particular products he has his eye on are crash games and live casino.
Garcia said: “We are seeing the market gradually evolve through the introduction of new products and game formats. Crash games are a good example. They have gained a presence in Portugal, although they have not reached the same level of popularity or cultural relevance that we see in markets such as Brazil.
“Looking ahead, I believe player demand will increasingly move towards products that offer a more engaging, interactive and entertainment-led experience. Players are not necessarily looking only for new games; they are looking for new ways to experience gaming.
“This is where I see significant potential for products such as Live Casino. It combines the traditional casino experience with interaction, entertainment and a stronger sense of immersion — and I believe that could resonate particularly well with Portuguese players if and when the regulatory framework allows it.”
Portugal iGaming brings with it a taxation challenge since sports betting is taxed on turnover and online casino is taxed on GGR.
Garcia emphasised that while this changes margins, promotional investment and bonus strategies between the two verticals, cross-sell can be used to help support products across an operator’s platform.
“I would say the real challenge — and opportunity — is building a balanced ecosystem where the two verticals complement each other.”
Pedro Miguel Garcia, Country Manager for Portugal at BacanaPlay
He added: “Sportsbook and casino should not necessarily be looked at as two completely separate businesses. A significant proportion of Portuguese players engage with both verticals, and the ability to create a strong customer journey between sportsbook and casino can have a major impact on the overall value and profitability of a player.
“So, while the different taxation models certainly create complexity, I would say the real challenge — and opportunity — is building a balanced ecosystem where the two verticals complement each other.”
Garcia also spoke about Portugal’s increasing self-exclusion rates, balancing commercial growth with player protection and responsible gambling requirements, as well as the challenges present in the market compared to others in Europe.
