Filipe Mayer, Partner at CCA Law Portugal: SRIJ's approval of “Crash” sets a precedent for an innovative and safe online gambling in Portugal
Filipe Mayer, Partner at CCA Law Portugal, analyzes SRIJ's groundbreaking approval
On March 23, 2023, the Portuguese Gambling Regulator ("SRIJ”) approved a new online game called "Crash" ("Saque"), marking a pivotal moment in the gambling and betting industry in said country. This regulatory milestone ensures the game's availability in the Portuguese jurisdiction, while incorporating essential security, control, and reporting measures to promote safe and responsible gambling and wagering practices.
The Crash game stands out as a banked online game of chance, in which players play against the operator, based on a multiplier that increases from 1.00, with a maximum increment of 100.00, and whose objective is to cash out the bet before the multiplier increment expires or “crashes”.
While the Legal Regime for Online Gambling and Betting specifically outlines the categories of authorized online games and bets in Portugal, it also allows for the operation of new games of chance not covered in the initial list, subject to prior approval by the Regulator. In response to a request from a licensed entity to operate games of chance, the Regulator, for the first time, granted approval for the introduction of the "Crash" game. This breakthrough allows operators to seek licensing for their “Crash” online games.
This approval marks a significant advancement in the online gambling and betting industry, as SRIJ never had previously approved any new game of chance since the establishment of the Legal Regime for Online Gambling and Betting in Portugal back in 2015. This decision underscores the Regulator's commitment to addressing the dynamic landscape of online gambling and betting, by proactively regulating emerging trends rather than turning a blind eye.
In light of the proliferation of the illegal online gambling and betting websites and the continuous introduction of new and appealing games without any type of player protection by those who operate in the black market, the risks associated with such practices naturally escalate and threaten the health of the licensed ecosystem. Therefore, this approval signals a proactive approach by the Regulator, demonstrating a heightened awareness of the necessity to regulate, rather than ignore, new products dear to players, that may very soon find Crash on the websites of licensed operators in Portugal, thus dismissing the need to look for it on websites that offer no warranties whatsoever and no responsible gambling mechanisms. With the landscape of illegal gambling and betting rapidly evolving, legislative frameworks must keep pace with the swift emergence of new online games and bets, to safeguard and regulate the parallel market of online gambling and betting effectively.
In conclusion, this approval represents a very important step towards improving the offer of licensed games, but there is still a long way to go to achieve a truly competitive licensed gambling market in Portugal.