Austria's long-awaited new gambling law draft has been submitted to parliament after extensive negotiations, setting the stage for a multi-operator online market. The government aims to finalize the law before the expiration of the 15-year sole licence for online gaming and lotteries held by Win2Day, a subsidiary of Austrian Lotteries, which concludes on October 1, 2027. This marks a pivotal moment as it could end one of the last online casino monopolies in Europe.
However, the situation for EU-licensed operators in Austria's grey market is precarious. Companies currently operating will need to cease their services by January 2027 to avoid an 18-month ban, which extends to two years for operators still active by 2030. A nine-month hiatus on unlicensed operations is anticipated from January to October next year, viewed as an opportunity for applicants to settle player claims and any outstanding taxes. According to the Austrian Betting and Gaming Association (OVWG), these claims could amount to several million euros.
Political analyst Felix Geyer cautions that the government may struggle to meet its deadlines. If parliament passes the law in July, a three-month EU notification period could delay its implementation until October. The Finance Ministry would then have a limited time frame—approximately one year—to establish a tender process, review applications, and grant licenses, all while preparing the new gambling authority that will replace them.
Geyer expresses skepticism about the timeline, stating, "Given how slow political processes in Austria can be, I’m sceptical about whether they will be able to hand out licences within 12 months," especially as the law must be enacted first.
Concerns have also arisen regarding potential challenges from Malta at the EU level, which could extend the notification process and delay the transition to legal operations.
An earlier draft of the legislation had promised a definitive October 2027 deadline for issuing licenses, a detail notably missing in the current draft submitted to parliament. Geyer emphasizes the importance of clarity from the Finance Ministry once the law passes, stating, “This process is about player protection and clearing the black market. If there is uncertainty, that could potentially lead players and operators back to the black market.”
Austria’s Krone newspaper reported on June 15 that the government plans an 18-month "cooling off" period for non-compliant operators, which may extend to 24 months after 2030. This draft measure, potentially favored by the Chamber of Commerce and the conservative People’s Party (ÖVP), as well as monopolist Casinos Austria, could benefit companies like Tipico and Merkur that withdrew from online operations ahead of the legislation. Conversely, this would disadvantage EU-licensed operators that maintained services just before the market opens.
Currently, only existing licensee Casinos Austria and its subsidiary will benefit from the nine-month transition, raising concerns that failing to reward compliant operators could set a poor precedent. “If we’re looking at the contested grey market operators, they made a conscious choice, and there were operators like Merkur and Tipico which withdrew from the market. It’s sad that these good actors that followed the rules have no reward,” Geyer said.
The OVWG is doubtful that the transitional period will channelize customers to Win2Day or legal brick-and-mortar operators, predicting the black market could thrive instead. OVWG President Simon Priglinger-Simader stated, "The only thing that would happen if the European operators were forced out is that players would move to the black market because they already operate in Austria and the brands are well known."
Concerns from the Social Democrats (SPÖ) for quicker market opening to enhance player protection were acknowledged, but a compromise led to the nine-month transition being established.
Entering the market will be costly due to transitional provisions, backdated player claims, taxes, and a steep proposed online tax rate of 45%. Major players are weighing the feasibility of entering a market laden with high entry costs. Arthur Stadler, a founding partner of Stadler Partner law firm, remarked, “In principle, this is a landmark and long-overdue shift; however, the entry price is steep enough that some operators may decide it isn’t worth paying.” He added that the high barriers to entry created by player claims and taxes appeared to favor the incumbent monopolist.
The goals of the new law include improving player protection and tackling the black market. The Finance Ministry indicated that they aim to create a compelling online gambling landscape that enforces player protections. These measures would involve strict rules for legal operators, including mandatory cooling-off periods after every 90 minutes of play and maximum stake limits.
For players under 26, weekly deposit limits are set at €250, while older players may deposit up to €1,680 weekly, with the potential for higher limits based on earnings. The practical effectiveness of these strict parameters in achieving high player channelization remains uncertain.
As Austria moves closer to transitioning from its monopolistic iGaming framework, challenges will echo those seen in neighboring Germany, where regulatory burdens have continued to draw players to the black market. Despite Germany’s market opening in 2021, a significant portion of its gaming revenue remains unregulated. Insights from Yield Sec indicate that around 54% of GGR originated from the black market in 2024.
The coming months will test whether Austria can successfully create a thriving legal market punctured by high compliance costs and regulatory challenges.
