Austria has taken a significant step forward in its gambling regulation. A draft of the country’s new gambling law has been submitted to parliament following intense negotiations. This new framework aims to establish a fully regulated online market with multiple operators.
The government recently finalized the draft and is now under pressure as the current 15-year monopoly license for online gaming and lotteries, held by Win2Day, a subsidiary of Austrian Lotteries, is set to expire on 1 October 2027. If implemented as intended, this transition would signal the end of one of the last online casino monopolies in Europe.
However, there’s an important stipulation for those already operating in Austria’s EU-licensed grey market: they must cease their gambling services by January 2027 to avoid an 18-month ban. This ban extends to two years for those still in business by 2030.
A transition period is anticipated between January and October next year. This nine-month hiatus will be crucial for potential licensees to address outstanding player claims and settle unpaid taxes. The Austrian Betting and Gaming Association (OVWG) estimates these claims could total several million euros.
Political analyst Felix Geyer notes that the government’s deadline may not be met. If parliament approves the law in July, a three-month EU notification period would follow, meaning the law could come into force no earlier than October. The Finance Ministry would then have the daunting task of establishing its new tender process, reviewing applications, and awarding licenses, all within approximately a year. Additionally, the lottery license, distinct from the online gaming license, will remain a monopoly and requires preparation for a new gambling authority to succeed the Finance Ministry.
Geyer expressed skepticism regarding the timeline, stating, “Given how slow political processes in Austria can be, I’m sceptical about whether they will be able to hand out licenses within 12 months.” He mentioned that legal challenges from Malta at the EU level could further delay the notification process, potentially creating uncertainty in the transitional phase.
An earlier draft mentioned a firm October 2027 deadline for issuing licenses, but this was notably absent in the final draft submitted to parliament. Geyer emphasized the importance of clear communication from the Finance Ministry following the law’s passage, stating, “This process is about player protection and clearing the black market. If there is uncertainty, that could lead players and operators back to the black market.”
Austria’s Krone newspaper reported on 15 June that the government is considering an 18-month “cooling off” period, extending to 24 months from 2030. This proposal appears to have support from the Chamber of Commerce, the conservative People's Party (ÖVP), and monopolist Casinos Austria, alongside Tipico-owned Admiral, a significant land-based operator.
If implemented, this would advantage operators like Tipico and Merkur, which withdrew from the online market before the new legislation. In contrast, EU-licensed operators with services in the prior 18 months would find themselves sidelined.
Currently, only Casinos Austria and its subsidiary, Austrian Lotteries, could benefit from the nine-month transition. Geyer cautioned that neglecting to reward compliant operators may establish a concerning precedent, noting that others might also operate in the grey market until the last moment, following the example set by non-compliant operators.
The OVWG remains doubtful that the transitional period will effectively channel customers to Win2Day or legal land-based operations. Instead, it anticipates a potential surge in black market activity. OVWG President Simon Priglinger-Simader remarked, “The only thing that would happen if the European operators were forced out for a certain period is that players would move to the black market because they already operate in Austria and the brands are well known.” He dismissed suggestions of land-based operators attracting those users.
In discussions, the Social Democrats (SPÖ) favored a more rapid market opening to expedite player protections; however, a compromise led to the current nine-month transitional phase.
The costs facing potential market entrants are substantial, including player claims, tax repayments, and a proposed 45% online tax rate. Some major companies are weighing whether market entry will be cost-effective.
Arthur Stadler, founding partner of Stadler Partner law firm in Vienna, characterized this shift as essential yet fraught with high costs that could deter operators. Describing player claims and backdated taxes as “essentially a paywall into the licensed market,” he noted that repaid taxes on winnings may not be refunded as expected. He argued that the monopolistic tendencies have created significant barriers to entry, stating that multiple factors are in direct conflict.
The crux of the new regulations will be whether the government can effectively enhance player protections and diminish the black market. In a previous draft, the Finance Ministry outlined the goal of creating an attractive online gambling environment that channels players into the legal market while ensuring high standards of protection. To combat illegal operators, the government intends to implement cease-and-desist orders and payment blocks. Concurrently, licensed operators will face strict regulations, such as mandatory 15-minute cooling off periods after 90 minutes of play, €5 stakes, and restrictions on spins and winnings.
For those under 26, weekly deposit limits will be set at €250, rising to €1,680 for older players, who can apply for higher limits based on income and creditworthiness. The compatibility of these rigorous requirements with channelisation remains uncertain.
Drawing parallels with Germany, Geyer believes Austria might consider regulating game suppliers to complicate access for black market operators. He stated, “If you manage to cut off the supply to black market operators, then you also cut off the players.” However, he also cautioned that Germany's experience, where 54% of Gross Gaming Revenue (GGR) was sourced from the black market in 2024, serves as a warning. Operators attribute these issues to stringent regulations and high tax rates squeezing legal competitors.
As Austria prepares for the end of its iGaming monopoly, key questions linger regarding the willingness of operators to invest in the market as the tender process potentially unfolds later this year.
