Portugal has finally agreed to a concession to award a contract to a new casino project after months of delays.
The regulatory office of Serviço de Regulação e Inspeção de Jogos (SRIJ) has approved Portugal’s decision to expand the number of its land-based casinos from 11 to 14.
After months of negotiations, the SRIJ, the Portuguese Tourism Authority, the Ministry of Economy and the State Agency for Territorial Cohesion have finally reached an agreement on licensing costs, the tax process and compliance with European Union (EU) procurement rules.
In addition, the renewal of casino licences was not the only significant aspect of this decision. This was all about Portugal establishing who will own about 15% of the most profitable gaming assets for the next 15 years.
The framework of concession will assess the value of operators based on three variables relating to tax revenues, specifically:
- 50% based on the highest percentage of their gross gaming revenue (GGR),
- 35% on an annual fixed concession payment,
- 15% on a guaranteed minimum amount of variable contributions.
The government of Portugal has designed this evaluation model in such a way as to maximise long-term public revenues while allowing operators sufficient earnings to maintain and improve their gaming facilities, ensure business continuity, and increase the number of visitors to Portugal.
The current operator in Portugal, who is predominantly operational within the gaming industry, is Solverde. They were awarded both the Algarve and Espinho concessions and have further strengthened their position as the premier land-based casino operator in Portugal through the latest reassessment.
