Madeira Government Greenlights International Tender for Funchal Casino Licence

The Autonomous Region of Madeira has formally authorised the launch of an international tender to award the next exclusive casino concession for the Funchal gaming zone. The decision, taken by the Regional Government and published on July 21 in the region's official gazette, sets the procurement process in motion ahead of the current licence's expiry on December 31, 2026.

The tender will follow a restricted procedure with a prior qualification phase, open to international operators. Oversight of the process falls to the Regional Secretariat for Tourism, Environment and Culture, which will manage the procurement and eventually execute the concession contract.

Exclusive model and pre-qualification stage

The Funchal gaming zone will retain its exclusive concession structure. Interested parties must first pass a pre-qualification round that evaluates their financial standing and technical expertise before they can submit full bids. The legal foundation for the tender rests on Portugal's Gaming Law (Decree-Law No. 422/89), which reserves casino operations to the state but permits concessions to private companies, combined with the Portuguese Public Contracts Code.

Madeira's 2026 Regional Budget legislation also plays a role, granting the Regional Council of Government authority to approve concessions involving regional public assets, notably Casino do Funchal.

Timeline and market context

The restricted procedure mirrors the approach used in mainland Portuguese casino concession tenders launched in 2025, opening the competition to international bidders. Industry observers have previously flagged Cirsa, Groupe Barrière and Comar as potential participants in such competitions.

With under six months until the existing concession lapses, the timeline is tight. On the mainland, similar processes were not completed before existing licences expired, necessitating temporary extensions to keep operations running. The Madeira government has acknowledged the need to avoid disruption to gaming, tourism and investment during the transition.

Incumbent must compete

ITI/Grupo Pestana, which has held the Funchal concession since 1968 and operated Casino do Funchal since 1986, will not receive an automatic renewal. It must compete against any new entrants. The market now awaits the publication of formal tender documents, which are expected to detail qualification criteria, evaluation methodology, concession duration and investment obligations.