Madeira Opens Funchal Casino Concession to International Bidders

FUNCHAL, Portugal: Madeira has opened an international tender for the exclusive right to operate casino gaming in the Funchal zone. The incumbent will need to compete if it wants to retain the concession beyond 2026.

The regional government selected a restricted tender with prior qualification rather than a fully open public procedure. Applicants must therefore demonstrate that they meet initial requirements before being invited to submit detailed bids.

Related: Portugal to Expand Casino Market Through New Tender

Restricted Tender Requires Prior Qualification

Resolution No. 723/2026 authorizes the exclusive concession to be awarded to a private partner through a procedure carrying international publicity. Madeira’s Regional Government Council adopted the resolution on July 15.

The Regional Secretariat for Tourism, Environment and Culture will conduct the tender and complete the steps required to award, sign and administer the resulting concession contract.

Portugal reserves the operation of casino games to the state, but private companies can receive the right through administrative concession agreements. The country’s Gaming Law allows concessions to be awarded through either a public tender or a restricted tender involving prior qualification.

The process can admit qualifying companies established as public limited companies or equivalent entities within the European Union or European Economic Area. Foreign operators must meet the applicable Portuguese corporate, tax cooperation and anti-money laundering conditions.

Current Concession Expires at End of 2026

The existing concession is held by ITI, a company within Grupo Pestana. The agreement dates to 1968 and was most recently extended to Dec. 31, 2026, to compensate for the financial effects of restrictions imposed during the COVID-19 pandemic.

ITI will not receive an automatic extension under the new process. The company must complete the qualification stage and compete with other eligible applicants if it intends to continue operating the Funchal gaming zone.

The resolution identifies Casino do Funchal as property of the Autonomous Region of Madeira. Regional authorization is consequently required because the concession involves both the exclusive gaming rights and the use of publicly owned property.

Madeira said a new procedure is needed to maintain continuity once the current contract ends. The government cited the casino’s role in tourism, employment, investment and the generation of tax and concession revenue for the region.

Detailed Bid Conditions Still Pending

The resolution opens the procurement process but does not state the duration of the next concession, minimum investment obligations or the method that will be used to score competing proposals. Those conditions are expected to appear in the formal tender documents.

The qualification stage is also expected to examine applicants’ financial resources and technical ability to operate the casino. Companies that pass that stage would then be invited to submit full proposals for the exclusive concession.

The timetable leaves the regional government with approximately five months before the existing agreement expires. Madeira has emphasized the need to avoid disruption to casino operations and the associated tourism and financial activity during the transition.

Until a successful bidder is selected and the new agreement takes effect, ITI remains the concession holder. The tender itself does not change the casino’s current ownership or operating arrangements.

RELATED TOPICS: Regulation