“The entities contacted reported that they do not have any of the data requested by UTAO, revealing a gap in the available information as well as in the mechanisms and procedures generating data on the earnings of players in online games and betting,” states a report released today by the organization.
The draft Law No. 37/XVII/1.ª, related to the State Budget for 2026 (OE2026), is a legislative initiative of the Livre party aimed at introducing taxation under the Individual Income Tax (IRS) on net annual earnings exceeding 500 euros obtained by individual players on licensed platforms in Portugal through online games and betting.
In this context, the party requested UTAO to assess the respective budgetary impact.
Currently, the fiscal framework for online games and betting activities in the country falls exclusively on licensed operators, with player-earned winnings not subject to taxation or any declarative obligations.
In the report released today, the parliament’s supporting technicians stated they unsuccessfully requested a data set from the Tax and Customs Authority (AT), the Gambling Inspection and Regulation Service (SRIJ), and the Portuguese Association of Online Betting and Games (APAJO).
However, they point out that the current lack of taxation and declarative obligation is “an obstacle to the existence of structured information and, above all, of procedures and mechanisms that allow for assessing players’ earnings.”
“The absolute absence of data available on net earnings renders, in the current context, the quantitative exercise of assessing the budgetary impact” of Livre’s proposal unfeasible, concludes UTAO, adding that only the change in the current situation, “creating mechanisms and procedures that fill the gap in available information,” will allow this quantification.
In the report, the parliament’s technicians further state that taxation on earnings from online games and betting “could potentially aim to mitigate the negative externality associated with addictive behaviors,” but consider that this objective may be compromised by the fact that the taxation does not directly impact the price of each bet — “where the economic signal would be more immediate” — but only on the players’ annual net earnings.
“Thus, its deterrent effect may be more limited than that of taxation that acts directly on the frequency or value of bets,” they note.
Additionally, UTAO notes that some effects of the implementation of the taxation proposed by Livre “will depend on the operators’ reactions and the sensitivity of the players in a market particularly susceptible to regulatory changes.”
