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Austria Submits Overhaul of Gambling Laws to EU for Review

by Sienna Marques
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Austria Submits Overhaul of Gambling Laws to EU for Review

On Tuesday, Austria’s Ministry of Finance officially submitted a far-reaching draft of its gambling regulations to the European Commission, marking the beginning of a mandatory three-month standstill period before the legislation can be enacted.

This action triggers a review phase during which the Commission has the opportunity to address concerns related to state aid and single market regulations. Meanwhile, the Austrian parliamentary processes can continue.

The proposed legislation signifies a notable transformation of Austria’s gambling framework in recent years. It primarily focuses on tighter online gambling regulations, improved player protection, and a revamped licensing and supervision system.

Key elements of the draft law include the establishment of a national exclusion register, which will manage both self-exclusions and operator-imposed bans across casino gaming, slot machines, and online gambling platforms. This initiative aims to prevent excluded players from evading restrictions by switching between different products or operators.

Additionally, the draft introduces mandatory deposit limits for online gambling and slot machines, with more stringent limits for young adults aged 18 to 26 – a measured effort to protect this vulnerable demographic.

The legislation also proposes reductions in maximum stakes and increased time between plays for slot machines, requiring a cooling-off break after 90 minutes of continuous play to counteract excessive gambling.

Operators will be obligated to analyze the addiction potential of their gambling offerings, which will support wider research and policymaking on minimizing gambling-related harm.

Austria's government aims to initiate open licensing for online gambling operators, implementing transitional rules. Operators providing illegal services must cease operations by January 1, 2027, to qualify for an immediate license. Failing to comply will result in an 18-month waiting period, extending to 24 months from 2030. Furthermore, applicants must settle any outstanding tax liabilities and unpaid claims from roughly 20,000 affected players, addressing gaps in past enforcement.

The Austrian Betting and Gaming Association (OVWG) expresses doubt that the transitional period will channel significant traffic to Win2Day or licensed land-based operators, predicting instead that the black market might gain the most.

The reforms include a digital supervisory platform that features a central, operator-independent deposit limit. Enforcement measures such as payment blocking, blacklisting, and network blocking are set to deter illegal operators from reaching Austrian customers and guide players to the licensed market.

A maximum of 13 casino licenses will be issued, potentially allocated in packages. Licensing authorities will work to avoid excessive competition among casinos, ensuring a balanced geographical distribution to enhance player protection.

Niklas Sattler, a former Casinos Austria employee, argues that offering individual concessions would be the fairest approach for market entry. Casinos Austria, currently holding a monopoly on casinos, has publicly advocated for retaining the package system. Sattler foresees a tendering process for one package of six licenses and another of seven, which could allow a second major operator, like Merkur, to enter the market while marginalizing smaller competitors.

“This situation feels quite unfair,” Sattler remarked.

Political analyst Felix Geyer shared his skepticism regarding the timely issuance of licenses. “Given the sometimes sluggish political processes in Austria, I doubt they will be able to distribute licenses within a year, particularly since I do not anticipate they will start before the law is officially enacted.”

Should everything proceed as intended, the market is expected to open in October 2027.

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