Austria's long-awaited changes to its gambling laws have taken a significant step forward. After extensive negotiations, a draft of the new gambling law has been submitted to parliament, aiming to establish a regulated multi-operator online market.
Last week, the government finalized this draft, but time is of the essence. The current 15-year exclusive license for online gaming and lotteries, held by Austrian Lotteries' subsidiary Win2Day, is set to expire on October 1, 2027, possibly marking the end of one of Europe's few remaining online casino monopolies.
However, the new framework poses challenges for existing operators in Austria's EU-licensed grey market. Those currently operating must cease all gambling services by January 2027, or they will face an 18-month ban. For those still active by 2030, this ban extends to two years.
Next year, starting between January and October, there will be a nine-month pause on unlicensed operations. This period is meant for potential licensees to resolve existing player claims and settle any owed taxes, which, according to the Austrian Betting and Gaming Association (OVWG), amount to several million euros.
As political analyst Felix Geyer notes, the government faces a tight timeline. If the parliament passes the law in July, it will trigger a three-month EU notification period, meaning the earliest the legislation could take effect would be October. This timeline gives the Finance Ministry about a year to implement the new licensing process, review applications, and award licenses. In addition, a separate lotteries license must also be issued, and preparations for a new gambling authority will begin.
Geyer expresses skepticism. “Given how slow political processes in Austria can be, I’m not sure they can distribute licenses within 12 months,” he says, adding that he does not expect any action to start until the law is officially in effect.
There is also speculation that challenges from Malta at the EU level could further delay the notification. Amidst this uncertainty, concerns remain that the transition period may take longer than anticipated, which could create a gap in the legal market.
An earlier draft of the law had promised a firm October 2027 deadline for issuing licenses, but this assurance was notably absent in the draft submitted to parliament.
“I hope the Finance Ministry communicates clearly once the law is passed so everyone knows what to expect,” Geyer states. “This process is about player protection and curbing the black market. If there’s uncertainty, it could push players and operators back to the black market.”
Austria's iGaming landscape has already seen the voluntary withdrawal of several operators. In June, Austria’s Krone newspaper reported on a proposed 18-month “cooling off” period for non-compliant operators, extending to 24 months after 2030. This measure, still included in the draft as a deterrent, is said to be favored by conservative groups and monopolist Casinos Austria, while also gaining public support from Admiral, a land-based operator owned by Tipico.
Should this proposal be adopted, operators like Tipico and Merkur—which exited the online market ahead of new legislation—would gain a competitive edge, while EU-licensed operators who operated in the market during the transition would have to wait.
At present, only Casinos Austria and its subsidiary Austrian Lotteries would benefit from the nine-month adjustment period. Geyer warns that failing to recognize compliant operators could set a troubling standard. “The grey market operators made a conscious choice to operate outside of the law, while Merkur and Tipico respected the legislation and withdrew. It’s unfortunate that those who followed the rules are not being rewarded,” he remarks.
The OVWG has expressed doubt that this transitional period will result in significant channelization to Win2Day or legal land-based operators. Instead, it fears that the black market could gain an even greater foothold.
“The only outcome of pushing European operators out is that players will turn to the black market, which is already established and recognized in Austria,” says OVWG President Simon Priglinger-Simader. “There won’t be a land-based operator taking over those customers. That’s just not realistic.”
This concern was reportedly shared by Austria’s Social Democrats (SPÖ), who preferred a quicker market opening to enhance player protections. Ultimately, however, a compromise allowed for the nine-month transition.
With the transition period and the burden of player claims and taxes, alongside a proposed 45% online tax rate, entering the Austrian market is expected to be a costly endeavor. Even the largest market players are now weighing the feasibility of entry.
Arthur Stadler, founding partner of Stadler Partner law firm in Vienna, notes that this law represents a much-needed shift but warns of high barriers. “The entry price is steep enough that some operators may simply determine it isn’t worth it,” he explains, describing claims and backdated taxes as an “essentially a paywall into the licensed market.”
He points out that the high tax recovery ambitions clash with the need for a mandatory blackout period, which could yield no tax revenue during that time, leaving operators confused about whether the goal is revenue generation or exclusion.
Austria aims to bolster player protection while suppressing the black market. The Finance Ministry has stated the goal is to develop a compelling online gambling market that channels players legally.
The government plans to implement cease-and-desist orders and block access to black market networks and payments. For legal operators, strict player protection measures will apply, including mandatory cooling-off periods after 90 minutes of play, stake caps of €5, restrictions on spin speed, and a payout cap of €10,000. Young players under 26 will have a deposit limit of €250 per week, while older players can deposit up to €1,680 per week—with the option to apply for higher limits based on income and creditworthiness.
How these stringent requirements will influence channelization rates remains uncertain.
Looking to neighboring Germany, Geyer suggests that regulating game suppliers could hinder black market access to popular games. “If you cut off supply to black market operators, you also cut off players,” he argues, adding that demand for attractive products ultimately drives revenue.
However, Germany's own experience since its 2021 market opening serves as a cautionary tale. In 2024, black market operators generated 54% of the gross gaming revenue (GGR), amounting to around €4 billion. While the German regulator posits channelization rates near 80%, operators report it hovers around 50%, attributing this discrepancy to high tax rates and stringent regulations that handicap the legal market.
As Austria prepares for the conclusion of its iGaming monopoly, numerous uncertainties remain. With a tender potentially launching this year, it will soon become clearer whether operators are ready to commit to the Austrian market.
