Portugal Begins Process to Award Five Casino Licenses Locally

Portugal has launched a new public tender for five casino licenses that are expected to grant winners 15 years of exclusivity over land-based propertiesImage Source: Shutterstock.com

Portugalhas rolled out a new licensing procedure for five new casino projects in three areas, Algarve, Espinho, and Póvoa de Varzim, which will be up and running for the next 15 years, an official press release confirmed.

Five Casino Licenses in Portugal Up for Grabs

The Espinho and Póvoa de Varzim will both host one license each, and be able to host a respective land-based property, with Algarve hosting three licenses, to name: Vilamoura, Monte Gordo, and Barlavento.

The license in Póvoa de Varzim is owned by Estoril Sol, whereas Solverde operates the casinos in Espinho, Vilamoura, and Monte Gordio. Whether this will now change remains to be seen, with applicants having until September 2, 2025, to submit their final drafts.

It is not unusual for previous license holders to retain their licenses and operational rights, but should they fail the bid, they will most likely need to vacate the license for the next decade and a half. For the most part, the applicants who win will also retain rights over the existing equipment that is available on-site at the casinos.

The only exception is Barlavento, which is entitled to the equipment. While there are few licenses to be picked, any potential candidate would need to meet strict eligibility requirements, including a proven track record of operating games in chance in the previous five years, as well as demonstrate a certain degree of success in the past two years.

This evidence could be collected locally from Portugal or any other licensed jurisdiction that successfully demonstrates a business’s track record. Each bid will be assessed based on an established methodology, which will ngake into consideration numerous criteria, such as percentage of gross gaming revenue as a variable fee, annual fixed fee, amount proposed as minimum variable fee, and more.

On top of that, any winner will have to pay out an initial licensing fee that will vary based on which license a company and an applicant are competing for. The one in the Algarve costs €31 million, whereas the one in Espinho is €36 million, and not least, a Póvoa de Varzim license costs another €33.7 million.