Portugal to bid for the exploitation of casinos in the Algarve, Espinho and Póvoa de Varzim for 15 years

The bidding process, sponsored by the Portuguese Tourism Institute, for the exclusive concession to operate gambling in these three areas of Portugal covers the casinos of Espinho, Póvoa de Varzim, Vilamoura, Monte Gordo, and Portimão (Casino do Algarve).

Proposals can be submitted until September 5, according to information published in the Official Journal of the European Union. The decision to award the contract was made by the Minister of Economy and Territorial Cohesion by order of June 23.

The competition is conducted by a jury composed of three regular members and two alternates, appointed by the Gaming Commission. The award will be based on the most economically advantageous proposal, in a multifactorial format, considering the values of the fixed annual contribution and the minimum annual contribution, as well as the percentage of gross gaming revenues operated in the casinos.

The Estoril Sol group, through Varzim Sol, currently holds the concession for the Póvoa de Varzim casino, as well as the casinos in Estoril and Lisbon. In the case of Espinho and the Algarve, the concession is held by the Solverde group, which also holds the concession for the Chaves casino.

Solverde's concession for the Espinho casino, which attracted media attention this year and was at the center of controversy due to its ties to Luís Montenegro's family business (Spinumviva), expires in December. This is because it was extended after the pandemic, as established by the government to compensate businesses that had to close during lockdowns. It is as if the state had offered the two years of COVID-19 relief (2020 and 2021) to gambling operators.

Both the Espinho, Algarve, and Póvoa de Varzim gambling areas were extended until December 31, 2025. In the case of Estoril and Figueira da Foz (Sociedade Figueira Praia, owned by Amorim Turismo), they were already entitled to an additional year earlier than the others, given that their respective concessions ended in December 2020 and the tender was not announced.

"The negotiation of concession contracts involves several entities, in addition to the government and the gambling operator. The Gaming Regulation and Inspection Service (SRIJ) plays a key role in overseeing compliance with legal and regulatory standards. The Ministry of Finance assesses the financial compensation and fiscal impact, while the Court of Auditors can intervene to ensure that the public purse is not harmed. In case of doubt about competition in the sector, the Competition Authority can intervene to prevent monopolistic practices or undue favoritism," explained lawyer Gonçalo Oliveira Martins.

Casinos currently operating in Portugal

Currently, Portugal has a total of 12 casinos and one gaming machine room in operation. These are: Casino de São Miguel, Casino de Vilamoura, Casino de Monte Gordo, Casino de Portimão, Casino de Espinho, Casino de Figueira da Foz, Casino de Estoril, Casino de Lisboa, Casino de Póvoa de Varzim, Casino de Tróia, Casino de Chaves, and Casino de Madeira. These are the entities that, in return for the concession to operate gambling, must pay financial compensation.

Sources linked to this sector have questioned whether the Portuguese Tourism Institute's oversight of gambling still makes sense in the era of online gambling. They point out that responsibility fell to the tourism promotion institution in 2012 due to gambling's negative history, associated solely with addiction, and that it should be more closely linked to well-being and luxury.

When asked about possible changes to gambling oversight, expert Gonçalo Oliveira Martins clarifies that "there are proposals to transfer this oversight to the Ministry of Finance, given the sector's fiscal impact, or to the Ministry of Justice or the Interior, due to concerns about money laundering and gambling-related crimes."

"Another alternative would be the creation of an independent regulatory body, with greater autonomy from political power, to ensure transparency and fairness." "in sector oversight," the lawyer suggests.

By Mariana Bandeira