Madeira Launches International Tender for Funchal Casino Concession as Current Licence Nears Expiry

The Autonomous Region of Madeira has formally launched an international tender for the exclusive concession to operate casino gaming in the Funchal gaming zone, marking the end of the long-standing arrangement with the current concessionaire and opening the process to both domestic and international bidders.

The decision follows the approval of Resolution No. 723/2026 by the Regional Government Council during its plenary meeting on 15 July 2026. The resolution was subsequently published in the Jornal Oficial da Região Autónoma da Madeira on 21 July.

Under the resolution, the regional government confirmed that casino gaming in the Funchal gaming zone will continue to be operated by a private entity through an exclusive concession agreement. To identify the new concessionaire, Madeira has opted for a restricted tender with prior qualification, a process that will be advertised internationally.

Responsibility for conducting the tender has been assigned to the Regional Secretariat for Tourism, Environment and Culture, which has been authorised to oversee every stage of the procurement process, execute the concession contract with the successful bidder, and manage the agreement throughout its duration. The resolution bears the signature of Miguel Albuquerque, President of the Regional Government.

Regional authority over the concession

Casino gaming in Portugal is reserved exclusively to the state under the country's Gaming Law, Decree-Law No. 422/89. Although private companies may operate casinos, they can only do so through administrative concession contracts and must be incorporated as public limited companies or their legal equivalent.

Madeira exercises this authority over the Funchal gaming zone through powers granted under Decree-Law No. 318/84 together with Article 166 of the Gaming Law. The gaming zone encompasses several buildings and facilities, including Casino do Funchal, which the resolution confirms is owned by the Autonomous Region of Madeira.

Because the concession involves regional property, authorisation can only be granted by the Regional Government Council in accordance with Article 31 of the Autonomous Region's 2026 budget legislation.

The government explained that the new tender is necessary because the existing concession is approaching the end of its contractual term. The objective is to ensure that casino operations continue without interruption, avoiding any disruption from a legal, financial or tourism perspective.

Restricted international competition

Article 10 of Portugal's Gaming Law allows concessions to be awarded either through an open public tender or a restricted tender with prior qualification. Madeira has chosen the latter approach while ensuring the process receives international publicity.

The decision means that the current concessionaire, ITI/Grupo Pestana, will not receive an automatic extension of its rights. Instead, the operator—which has held the concession since 1968 and has managed Casino do Funchal since 1986—must compete alongside any other qualified companies interested in securing the licence.

The current concession is scheduled to expire at the end of 2026, leaving approximately five months for the competitive tender process to be completed and a new operator selected.

Attention will now shift to the publication of the formal tender documentation, which is expected to establish the qualification requirements for bidders, explain the evaluation criteria that will determine how proposals are scored, specify the duration of the new concession, and outline the investment commitments that the successful operator will be required to undertake.

By fLEXI tEAM