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Austria Moves to Reform Gambling Market with New Draft Law

by Sienna Marques
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Austria Moves to Reform Gambling Market with New Draft Law

Austria has taken a significant step towards reforming its gambling market by submitting a draft gambling law to the European Commission for review. This submission initiates a legally required three-month period during which the Commission will evaluate the legislation to ensure it aligns with EU laws, including regulations related to state assistance and the single market.

The proposed bill, put forth by the Ministry of Finance, outlines the establishment of a national self-exclusion system targeting online gambling, casinos, and gaming machines. This system would prevent individuals who are banned from gambling from receiving services from licensed operators. Additionally, the draft law introduces mandatory deposit limits for online gambling and gaming machines, with stricter limits for players aged 18 to 26. Other responsible gaming measures included in the proposal are reduced stake limits on gaming machines, slower-paced games, and mandatory breaks every 90 minutes of play. Operators will also be required to analyze their games and contribute information for gambling studies.

The proposed changes aim to transition Austria from its current monopoly structure in the online gambling market to a system based on open licensing. Those currently providing gambling services to Austrian customers without a license must cease operations by January 1, 2027, if they wish to obtain a license. For operators who continue to operate illegally, there will be an extended waiting period of 18 months before they can become eligible for a license, increasing to 24 months after 2030.

Applicants seeking a license must first satisfy any tax obligations and resolve player claims before their applications can be processed. The draft law proposes that Austria will issue up to 13 licenses for casinos, with the potential for licenses to be awarded in bundles.

However, the proposal has drawn criticism from various industry members, and experts have raised concerns over the feasibility of completing the licensing process in time, given Austria's goal of launching the new regulated gambling market by 2027.

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