On Tuesday, Austria's Finance Ministry submitted a significant draft of its gambling regulations for review by the European Commission. This submission will trigger a mandatory three-month standstill period before the legislation can be officially enacted.
During this review phase, the Commission has the authority to raise concerns related to state aid or single market issues, while Austria's parliamentary processes will continue concurrently.
This proposed legislation marks a major overhaul of Austria's gambling framework, focusing on stricter controls for online gambling, enhanced protections for players, and a revamped licensing and supervision system.
Key features of the draft law include the introduction of a national exclusion register, which will combine self-exclusions and bans imposed by operators across various gambling platforms including casino gaming and slot machines. The goal is to prevent players who have excluded themselves from evading restrictions by switching between different products or operators.
Additionally, the draft law sets deposit limits for online gambling and slot machines, with especially stringent limits for young adults aged 18 to 26, aimed at providing greater protection for this vulnerable demographic.
It also proposes lowering maximum stakes and reducing the speed of slot games, alongside implementing a mandatory cooling-off period of 90 minutes after continuous play to help combat excessive gambling.
Operators will be required to examine the addiction potential of their offerings, contributing to wider research and policymaking efforts focused on reducing gambling-related harm.
As part of the government's initiative to open the market, new open licensing rules will be introduced for online gambling operators. Those currently operating illegally will need to cease activities by January 1, 2027, to qualify for a license. If they fail to comply, they face an enforced waiting period of 18 months, which will increase to 24 months from 2030. Moreover, applicants must address outstanding tax liabilities and unpaid claims from around 20,000 affected players, a measure aimed at tackling historical enforcement gaps.
Despite these reforms, the Austrian Betting and Gaming Association (OVWG) expressed skepticism about the effectiveness of the transitional period, suggesting that the black market may emerge as the biggest beneficiary rather than legal operators.
The reform will also include a digital supervisory platform featuring a central, operator-independent deposit limit, with enforcement tools such as payment blocking and blacklisting intended to keep illegal operators from accessing Austrian customers, thus directing players to the licensed market.
The draft law stipulates a maximum of 13 casino licenses, to be allocated in packages, while licensing authorities must ensure a balanced geographical distribution and avoid excessive competition among casinos.
Niklas Sattler, a former employee of Casinos Austria, proposed that offering individual concessions would provide a fairer approach to market entry. Currently, Casinos Austria, which holds the monopoly on casinos, is advocating for the continuation of the package system. Sattler anticipates that instead of two packages of six, one package of six and another of seven will be tendered, allowing larger entities like Merkur to enter the market while sidelining smaller competitors.
Sattler commented, "We believe it’s quite unfair."
Political analyst Felix Geyer expressed doubts regarding the timely distribution of licenses, indicating that the slow political pace in Austria could hinder the process. He stated, "I’m skeptical about whether they will be able to hand out licenses within 12 months," and noted that he expects licensing efforts to begin only after the law takes effect.
If the timeline proceeds as planned, the market could officially open in October 2027.
