Austria has submitted a draft of its new gambling law to parliament, marking a pivotal step towards a fully regulated multi-operator online gaming market. Following extensive negotiations and multiple revisions, the new framework aims to end the 15-year monopoly on online gaming and lotteries held by Win2Day, a subsidiary of Austrian Lotteries, set to expire on October 1, 2027.
However, the transition poses challenges for the current EU-licensed grey market operators. Those active in the market must cease their operations by January 2027, or risk an 18-month ban from re-entering. For operators remaining in the market past 2030, this ban could extend to two years.
A nine-month hiatus on unlicensed operations will occur between January and October 2026, during which all prospective licensees are expected to resolve outstanding player claims and unpaid taxes from prior periods. According to the Austrian Betting and Gaming Association (OVWG), these player claims amount to several million euros.
Political analyst Felix Geyer expressed skepticism about whether the government could meet its deadlines. Should the parliament approve the law in July, a mandatory three-month EU notification period would follow, possibly delaying enforcement until October at the earliest. This timeline provides the Finance Ministry less than a year to establish a new tender process, review applications, and issue licenses. The current lotteries license is expected to remain a monopoly separate from the online gaming license.
Geyer warns of slow bureaucratic processes in Austria potentially hindering timely license distribution, especially since the Finance Ministry may not begin its work until the law takes effect. Delays from potential EU challenges, notably from Malta, could exacerbate the situation.
Earlier drafts of the law indicated a firm October 2027 deadline for licensing, but this specification was removed in the final draft. Geyer stresses the importance of transparency and communication from the Finance Ministry post-approval, saying, “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.”
On June 15, Austria’s Krone newspaper reported that the government proposed an 18-month 'cooling off' period for non-compliant operators, increasing to 24 months starting in 2030. This proposal, backed by the Chamber of Commerce and the conservative People’s Party (ÖVP), as well as monopoly holder Casinos Austria, would advantage operators like Tipico and Merkur—both of which exited the digital market early. This would force EU-licensed operators that continued services to wait on the sidelines.
Now, only Casinos Austria and its subsidiary Austrian Lotteries will gain from the nine-month transition, and Geyer cautions against creating incentives for non-compliant operators. He added that “good actors” like Merkur and Tipico who respected the legislation deserve consideration, suggesting that failure to reward compliance creates a precedent for future market behavior.
The OVWG has indicated that it doubts the transition will result in significant legal market channelization, predicting the black market will benefit instead. “If European operators—a large segment of the market—are forced out, players will turn to the black market for familiar brands,” said OVWG President Simon Priglinger-Simader.
Concerns regarding this trend were raised by the Social Democrats (SPÖ), who advocated for a quicker market opening, but the nine-month transition remains the compromise.
The high cost of market entry—heightened by player claims, unpaid taxes, and a proposed 45% online tax rate—further complicates the landscape. Arthur Stadler, founding partner of Stadler Partner law firm in Vienna, voiced concerns over the steep challenges for market entry, calling the claims and back taxes a “paywall into the licensed market.” He noted that operators face a dilemma between pursuing revenue collection and ensuring market inclusion.
Ultimately, as Austria transitions to a regulated market, politicians face the challenge of enforcing player protections while limiting the black market's influence. The framework specifies measures like cease-and-desist orders, payment blocking, and strict player safety protocols, including mandatory cooling-off periods, stake limits, and payout caps.
Player limits will apply, with a deposit cap of €250 per week for those under 26, increasing to €1,680 for older players. From age 23, players may apply for higher limits based on financial assessments. The potential feasibility of strict regulations achieving high channelization remains uncertain.
Geyer posited a comparison to Germany, suggesting Austria could benefit from regulating game suppliers to hinder black market access. He warned against merely relying on restrictions, citing Germany's own experiences where a significant portion of online revenue remains in the black market despite regulations.
As Austria prepares for the eventual end of its online gaming monopoly, doubts linger regarding the readiness of operators to enter this evolving landscape. The development of the tender process in the coming months will be critical in determining the commitment of operators to the Austrian market.
