Austria has taken significant steps toward reforming its gambling laws, with a draft of the new gambling legislation submitted to parliament following weeks of negotiations. This draft paves the way for a fully regulated multi-operator online gaming market in Austria.
The Austrian government finalized the draft last week, facing a tight deadline. The sole license for online gaming and lotteries, currently held by Win2Day, a subsidiary of Austrian Lotteries, will expire on 1 October 2027. If all proceeds as planned, this will signal the end of one of the last online casino monopolies in Europe.
However, there's a challenge for those currently operating in the EU-licensed grey market. All entities will need to halt gambling services by January 2027 or risk an 18-month ban from the market, which could extend to two years for continued operations past 2030.
Between January and October of next year, there will be a nine-month pause on unlicensed operations, during which potential licensees are expected to address existing player claims and settle any outstanding taxes. According to the Austrian Betting and Gaming Association (OVWG), these claims could total several million euros.
Challenges remain for Austria's timeline on iGaming. Political analyst Felix Geyer notes that the government may struggle to meet its deadlines. Should the law be approved in parliament by July, a three-month EU notification period would follow, delaying the law's potential implementation until October. This timeline allows the Finance Ministry about a year to establish a new tender process for awarding licenses and to set up a new gambling authority to replace the Finance Ministry.
Geyer expresses skepticism about the government's ability to issue licenses within a year, particularly since no action is expected until the law takes effect. Speculation exists surrounding possible delays from Malta at the EU level, adding to the uncertainty of the timeline and potentially prolonging the transition period.
An earlier draft had set a definitive October 2027 deadline for license issuance, which was absent in the current submission. Geyer emphasizes the importance of clear communication from the Finance Ministry once the law is enacted, stating, "This process is about player protection and clearing the black market. If there is uncertainty, that could lead players and operators back to the black market."
On 15 June, Austria’s Krone reported the government considering an 18-month "cooling off" period, extending to 24 months from 2030. This proposal, supported by the Chamber of Commerce and the People’s Party (ÖVP) as well as Casinos Austria, could advantage operators like Tipico and Merkur, who withdrew from the market pre-legislation, leaving existing licensee Casinos Austria and Austrian Lotteries to benefit from the transition.
Geyer notes that not recognizing compliant operators like Merkur and Tipico could discourage future compliance, suggesting that in the face of non-compliance, operators might opt to operate in grey areas rather than withdraw from the market.
The OVWG doubts that the anticipated transition period will effectively channelize players to Win2Day or legal operators. Instead, they predict an increase in black market activity as players shift to familiar brands that already operate in Austria. OVWG President Simon Priglinger-Simader stated, "I don’t think there is a world where there would be a land-based operator taking over all the customers. That’s just wishful thinking."
To mitigate the risks of black market growth, the Social Democrats (SPÖ) advocated for a quicker market opening to enhance player protections. Nevertheless, a compromise led to the nine-month transition.
With player claims, taxes owed, and a proposed 45% online tax rate, entering the Austrian market will involve significant financial considerations. High-profile operators are questioning whether the costs justify their entry.
Arthur Stadler, a founding partner at Stadler Partner law firm, remarked, "In principle, this is a landmark and long-overdue shift. Still, in practice, the entry price is steep enough that some operators may simply decide it isn’t worth paying." He characterized the player claims and backdated taxes as "essentially a paywall into the licensed market," and noted the challenges posed by existing tax structures.
The government aims to improve player protection and curb black market engagement through various enforcement strategies, including cease-and-desist orders and payment blocking. Legal operators will face strict player protection measures, including 15-minute "cooling off" periods after 90 minutes of play and a €5 cap on stakes. Additionally, players under 26 will be limited to weekly deposits of €250, while older players may deposit up to €1,680 weekly, with higher limits available based on financial assessment.
The compatibility of these regulations with effective channelization remains uncertain. Comparing the situation to Germany, Geyer suggests regulating game suppliers to limit black market access to popular titles. He believes cutting supply could reduce the number of players engaging with black market operators.
With the deadline for Austria's iGaming monopoly approaching, numerous questions linger regarding the market's future. As the tender process potentially unfolds this year, the following months will reveal if operators are ready to make significant investments in the Austrian market.
