Austria’s long-awaited gambling law has made its way to parliament after extensive negotiations. This draft aims to establish a fully regulated multi-operator online market. With the draft finalized last week, the government is now under pressure as the sole licence for online gaming and lotteries, held by Win2Day, will expire on 1 October 2027. This date will potentially end one of the last online casino monopolies in Europe.
However, for those operating in Austria’s EU-licensed grey market, there are challenges ahead. Current operators must stop offering gambling services by January 2027 to avoid an 18-month ban. For those still active by 2030, the ban extends to two years. Additionally, there will be a nine-month pause on unlicensed operations starting between January and October of next year. During this period, potential licensees are expected to address existing player claims and any outstanding taxes, with claims amounting to several million euros, according to the Austrian Betting and Gaming Association (OVWG).
Political analyst Felix Geyer raised doubts about whether the government will meet the deadline. If the law passes in parliament in July, a three-month EU notification period will commence, making October the earliest possible enforcement date. This timeline provides the Finance Ministry about a year to develop a new tender process, review applications, and issue licenses. The lotteries licence will also need to be awarded before a new gambling authority, replacing the Finance Ministry, is established.
Geyer expressed skepticism regarding the licencing timeline, emphasizing that the slow pace of Austria’s political processes could inhibit timely issuance of licenses. He pointed out that challenges from Malta at the EU level might further complicate matters, potentially extending the transition period and creating gaps in the legal market.
An earlier draft indicated a clear October 2027 deadline for licenses, but that timeline was omitted in its current version. Geyer stressed the need for clear communication from the Finance Ministry post-legislation to maintain player trust and compliance, warning that uncertainty may push players and operators toward the black market.
On 15 June, Austria’s Krone reported that the government is considering an 18-month cooling-off period, potentially extending to 24 months from 2030. This proposal has garnered support from both the Chamber of Commerce and the conservative People’s Party, as well as monopolist Casinos Austria, and was publicly backed by Tipico-owned Admiral. If implemented, these measures could give companies like Tipico and Merkur a competitive advantage in the market, having previously exited their online operations as they anticipated the new legislation.
At present, only Casinos Austria and its subsidiary, Austrian Lotteries, would benefit from the nine-month transition. Geyer warned against failing to acknowledge compliant operators, stating that lack of rewards for good actors might encourage illegal activity in the future, as non-compliant operators could shift operations until the last moment.
The OVWG remains skeptical about whether the transitional period will effectively channelize players to Win2Day or legal land-based operators, predicting that the black market could profit instead. OVWG President Simon Priglinger-Simader stated that if European operators are excluded from the market, many players will turn to well-known black market brands.
Concerns were also raised by the Social Democrats, who pushed for a quicker market opening to implement protections for players sooner. Eventually, a compromise resulted in the nine-month transition period.
Entering the Austrian market comes with significant costs. Between the transitional period, player claims, and a proposed 45% online tax rate, many industry players are reconsidering the feasibility of entry. Arthur Stadler, founding partner of Stadler Partner law firm in Vienna, noted that the expenses could deter operators from entering the market. He described the player claims and backdated taxes as a substantial barrier to entry. Stadler pointed out that many of these hurdles seem to favor the incumbent monopolist.
The underlying objective of the new law is to enhance player protection and eradicate the black market. The Finance Ministry previously expressed a goal of creating an appealing online gambling environment that encourages channelization into the legal market. To combat illegal activity, they plan to implement measures such as cease-and-desist orders and payment blocking. Meanwhile, legal operators face stringent player protection mandates, including 15-minute cooling-off periods after 90 minutes of play, online stake limits of €5, and restrictions on game speed and payout caps.
Younger players will have deposit limits of €250 per week, increasing to €1,680 for older players. However, players over 23 can apply for higher limits based on their financial profile. Whether these strict regulations will align with effective channelization remains to be seen.
Drawing from Germany’s experience, Geyer suggested that Austria could improve its regulatory framework by controlling game supply access for black market operators. He believes cutting off supply would simultaneously reduce player access. Yet, the liberalized market for online betting in Germany opened in 2021, and 54% of revenue in 2024 was still generated from the black market, indicating potential pitfalls for Austria.
Data from Yield Sec showed that channelization in Germany stood at around 50% for 2025, despite claims from regulators of an 80% rate. Operators attribute this discrepancy to high taxes and restrictive regulations, leading to a challenging environment. Similarly, Geyer anticipated that Austria would face stringent regulations from the outset, raising concerns about market attractiveness for legal operators.
As the end of Austria’s iGaming monopoly approaches, many questions remain unanswered. With a tender process potentially beginning this year, it will soon become clear whether operators will pursue opportunities in the Austrian market.
