The Portuguese government has decided to review their current online gambling laws in an attempt to reduce their debt levels.
Relaxing the stringent gambling laws could bring in a much-needed 250 million Euros in tax revenues for the country. A committee consisting of the European Union, International Monetary Fund, and the European Central Bank will look more closely into the gambling laws.
The draft regulations which will open up the country to online gambling sites were announced 18 months ago, and if they are approved, the new regulations will come into effect in 2014. There is a condition, though, and that is a 20-25% tax which will be imposed on the profits of gambling companies in Portugal.
This should ring a bell…remember Gibraltar? When the British government planned to increase the tax on gambling firms from 10% to 15%, gambling operators protested in outrage. KPMG tried in vain to advise the UK government against a tax increase, but in early October the 15% tax wasenforced, to come into effect in December 2014.
Even with this case in Portugal, concerns have been raised that many online gambling countries will simple leave the country.