Portugal’s new casino concession agreements are expected to generate more than 1 billion euros in state revenue over the next two decades. The Algarve remains one of the country’s key gaming regions under the new contracts.

The agreements, published in the Diário da República, cover the gaming zones of Póvoa do Varzim, Espinho and the Algarve. Together, the concessions are expected to provide higher annual payments to the State than originally projected in the public tender process.

State revenue rises

Under the new contracts, the State will receive €6.7 million per year in fixed payments, exceeding the initial estimate of €5.2 million. This represents an additional €30 million in public revenue over the full concession period of 15 years.

The Algarve concession will continue to be operated by Solverde, which also secured the Espinho gaming zone. In the Algarve, the group agreed to pay €1.7 million annually in fixed payments, €200,000 above the minimum amount established in the tender.

Solverde also paid €31 million upfront to secure the Algarve concession rights. In total, the State received €100.6 million in initial payments across the three gaming zones.

Variable payments

In the Algarve, Solverde will hand over 30 percent of gross gaming revenues to the State, matching the minimum percentage established in the public tender.

According to the agreements, the Algarve concession guarantees the State a minimum annual revenue of €10 million, around €1 million more than initially projected.

Guaranteed revenue

The new concession agreements provide long-term stability for casino operations in the region and secure a predictable revenue stream for the State.

Even without a future renewal of the concessions after the initial 15-year term, the government estimates the contracts could still generate around €850 million in total state revenue.