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The Regional Government of Madeira has formally approved the launch of an international tender for the next exclusive concession to operate games of chance in the Funchal gaming zone, marking the start of a competitive procurement process ahead of the expiry of the current licence on 31 December 2026.
Resolution No. 723/2026, adopted on 15 July and published in the Official Journal of the Autonomous Region of Madeira on 21 July, authorises the award of the concession through a restricted tender with prior qualification and international publicity. The process will be overseen by the Regional Secretariat for Tourism, Environment and Culture, which has been delegated responsibility for managing the procurement and executing the resulting concession contract.
The decision confirms that the Funchal gaming zone will continue to operate under an exclusive concession model, with prospective bidders required to pass a pre-qualification stage assessing their financial strength and technical capability before being invited to submit detailed proposals.
The procurement framework is based on Portugal’s Gaming Law (Decree-Law No. 422/89), which reserves casino operations to the State but permits concessions to private companies, alongside the Portuguese Public Contracts Code. The resolution also references Madeira’s 2026 Regional Budget legislation, which grants the Regional Council of Government authority to approve concessions involving regional public assets, including Casino do Funchal.
The use of a restricted procedure mirrors the approach taken in the mainland Portuguese casino concession tenders launched in 2025 and opens the process to international operators. Industry observers have previously identified groups including Cirsa, Groupe Barrière and Comar as potential participants in Portuguese concession competitions.
With less than six months remaining before the existing concession expires, the timetable is expected to be challenging. Similar mainland concession processes were not completed before existing licences expired, requiring temporary extensions to ensure continuity of operations. The regional government has acknowledged the importance of avoiding disruption to gaming activity, tourism and investment during the transition.
The incumbent operator, ITI/Grupo Pestana, which has held the concession since 1968 and operated Casino do Funchal since 1986, will not receive an automatic renewal and must compete alongside any new entrants.
Attention will now turn to the publication of the formal tender documents, which are expected to outline the qualification criteria, evaluation methodology, concession term and investment obligations for bidders.
