RGA dismisses Portuguese monopoly's liberalisation fears
RGA chief Clive Hawkswood says SCML's concerns are misplaced but reiterates call for rethink over "punitive" taxes
Remote Gambling Association CEO Clive Hawkswood has dismissed Portuguese monopoly Santa Casa da Misericodia de Lisboa’s fears over the planned liberalision of Portugal’s online gambling market but called on the country to rethink its “punitive” tax plans.
Portugal’s Council of Ministers submitted new legislation to the European Commission last week, seeking approval on plans to liberalise its online gambling market including a two-tiered tax rate for online gaming and sports betting.
Plans originally approved by the country’s parliament in July included a tax rate of 15% of gross gaming revenue for games of chance and mutual horse racing betting and a rate of 8% on total sports betting revenue, a taxation regime which the RGA criticised earlier this year.
However, SCML has since stated its opposition to the country’s plans, arguing that they could do more harm than good and highlighted the potential detrimental impact they could have on its land-based sports betting operations.
The RGA responded yesterday by pointing towards cases in other jurisdictions, including Denmark, where regulation has seen incumbent operators to thrive under a liberalised regime.
“We genuinely believe that its [SCML’s] fears are not well-founded and that an online betting market with a reasonable tax regime based on gross profits would present it with a huge opportunity,” Hawkswood said.
Stating there to be a “very clear demand” for online gambling in Portugal, Hawkswood added that SCML and other operators would only benefit from a licensed and competitive market if the country’s tax rates made it possible.
“If consumers cannot be offered the value and range of products they desire from within the Portuguese market they will continue to seek it out from operators who are licensed elsewhere.
“That cannot be good for Santa Casa or anyone else,” he added.