Portugal’s online gambling market appears headed for a seismic shake-up as legislators ponder an end to the punitive tax on sports betting turnover.

Last Saturday, local business news outlet Jornal de Negocios reported that Portugal’s government had drafted a preliminary budget for fiscal 2019 that included sweeping changes to how the country’s online gambling operators will be taxed.

According to the report, the government is proposing a new flat tax of 25% on all online gambling revenue, replacing the 15-30% sliding scale applied to online casino and poker revenue and the 8-16% incremental tax on online sports betting turnover.

The report cautioned that the proposed shift in Special Online Gambling Tax (IEJO) to a 25% flat rate on gross gaming revenue is only a preliminary proposal and the final 2019 budget document is subject to further modifications. However, if the 25% rate goes through, it could provide a sorely needed jumpstart for Portugal’s regulated online gambling market.