A stunning U-turn by the Finance Ministry means an end to the online casino monopoly could finally be on the cards in Austria. Here’s what operators need to know about the upcoming reforms.
What’s going on with Austria’s iGaming sector?
Although the pace of change in Austria has been glacial, the ice is finally beginning to crack. After months of rumours, a draft gambling law from the Finance Ministry leaked on Wednesday revealed that an end to the decades-long online gambling monopoly is now on the horizon.
With the current online gambling licence – held by Austrian Lotteries’ brand Win2Day – set to expire in 2027, a new tender process lies ahead. This time, however, there will likely be not one, but several licences up for grabs.
Explaining why the monopoly should be replaced, the Finance Ministry said the model had become “hard to enforce” in the digital age, particularly in the cross-border online sector.
“The aim of this change is to create an attractive online gambling offering that ensures a high level of channelisation into the legal market and the highest possible standards of player protection,” the draft law explains. Of course, player protection is not the only factor in their decision. With Austria under mounting pressure to reduce its budget deficit, the reform could also provide a major fiscal windfall.
Who can apply for a licence?
According to the draft, gambling companies who are headquartered in the EU, EEA or Austria would be eligible to apply for a licence – including licence-holders from other jurisdictions. This would include so-called “grey market” operators currently active in the region on a Malta or Gibraltar licence.
There is, however, a catch: operators who were active in the market already will need to prove that they are “fit and proper” by clearing all backdated taxes due in Austria, and additionally settling player claims rulings. In other words, they will need to buy their way into the legal market.
Significantly, licences will be uncapped – at least for online gaming. The lottery concession, which was previously coupled with the online casino concession, will now be uncoupled and remain a monopoly. Expect hopeful operators to fight tooth-and-nail for the single licence in the coming years.
What will it cost to operate in Austria’s iGaming market?
For those wanting a slice of the pie in Austria, entry into the regulated market won’t come cheap.
Speaking to Der Standard, players’ lawyer Oliver Peschel said the player claims payouts alone amount to “a few hundred million euros”, with thousands of players currently “waiting for the money they are legally entitled to”.
In addition, would-be licensees will have backdated taxes to reckon with. “As a basic prerequisite for the granting of a licence, applicants must fully disclose and settle any outstanding tax liabilities that are not yet statute-barred,” the draft explains. Once this backlog is settled, operators will have to contend with one of the highest tax rates on the continent. Following the latest hikes in 2025, online gambling will be taxed at a rate of 45% of GGR.
As Vienna-based gambling lawyer Arthur Stadler tells iGB, operators would also be required to hold a minimum share capital of €10 million. This could drive consolidation and limit the market to major operators who can bear these financial burdens.
What about social responsibility?
That is set to be a major part of the reform. The latest draft sets out an extensive player protection framework, with many of the safeguards currently used in Austria’s land-based market set to be extended into the online sphere.
These include:
- A central self-exclusion register linked to Austrian digital ID systems, with sign-up available directly through the regulator;
- Deposit limits of €250 per week for under-26s and €1,680 per week for over-26s (although the latter could be lifted if players can prove “sufficient liquidity”);
- Maximum stakes of €2 per spin and maximum winnings of €2,000;
- A ban on jackpots;
- Restricted speed-of-play and mandatory 15-minute “cooling-off” periods after every 90 minutes of play;
- Ongoing monitoring of player behaviour and addiction risk.
Taken together, the measures would create one of the most tightly regulated gambling markets in Europe, despite the planned liberalisation of licensing.
How do regulators plan to deal with the black market?
This is one of the key questions. According to a statement quoted by Der Standard, the Finance Ministry hopes its reforms will boost channelisation from 45% to 80%. (The industry believes the real channelisation rate is much lower.)
It will do this not only by opening the market, but by also kicking off a multi-pronged crackdown on illegal operators, using ISP blocking, payment blocking, blacklists, test purchases and “greater enforcement powers” for the regulator.
According to legal expert Stadler, however, there is a risk that the framework as it currently stands would result in a “commercially rather unattractive business model”. This could pose a threat to the government’s grand channelisation aims, he explains.
“The real danger is that the business model simply does not pencil out for operators, and that the industry does not embrace the new licences at all – because an operator holding an Austrian licence would, in practice, be unable to compete against the black market,” he warns. “The macroeconomic consequence of that would be that the channelling rate the legislator is aiming for is never achieved.”
What happens to Austria’s land-based gaming?
While land-based betting is regulated and licensed on a state level in Austria, land-based casinos are also a monopoly. Currently, 12 casinos are split into two packages – the “country package” and the “city package” – collating six urban gaming venues and six in tourist areas.
Casinos Austria – the owner of Austrian Lotteries, who holds the single online casino concession – is the sole licence-holder of the two packages. That could change in the coming years.
This time around, “a maximum of twelve concessions” could be granted in total. These could be grouped into packages, but only if the logic for doing so is “objectively justified”. In plain English, that means up to 12 operators could potentially enter the market, paving the way for smaller operators to also run one or two venues.
Whether this change materialises remains to be seen, however. The government could choose to stick with its existing dual-package system, although they would need to find a way to justify the decision. With the Stadtpacket (city package) due to expire in 2027, we should know more next year.
In the meantime, Austria’s land-based sector is set for numerous new restrictions, including reduced machine numbers, the eventual phaseout of VLTs (video lottery terminals) and a raft of new player protection measures aimed at limiting gambling-related harm.
Wasn’t there meant to be an independent gambling authority?
Yes, but the Finance Ministry is trying to manage expectations about how quickly that will happen. According to the draft, the “establishment of an independent gambling authority” is due to happen “no later than 2030”. However, in the meantime, the ministry itself will remain in charge.
That means that any new licences are likely to be awarded by the Social Democrat-led Ministry of Finance, but potentially overseen by an independent authority in the near future.
This would mark an important shift for Austria’s gambling market, where critics have long raised concerns about the close relationship between the state, the Finance Ministry and incumbent operators such as Casinos Austria.
When could the market open?
That’s not clear yet. With the online gaming licence and urban casino package both expiring next year, the race is on to commence the tender process.
However, the draft contains some careful provisions in the (likely) event of delays. “Terminating existing licences without providing legal alternatives would create a regulatory vacuum that could drive players into the illegal market,” the draft says.
To avoid this vacuum, current licences can be extended as a transitional arrangement.
“The Gambling Regulatory Authority must set the extension period as short as possible, so as to ensure that it serves solely as a stopgap until a new licensing procedure has been completed,” the draft explains. “The extension is also intended to ensure that potential applicants are given sufficient lead time to prepare their applications.”
According to Stadler, these extensions are legally possible but could reignite criticisms from the European Court of Justice over non-transparent licensing practices.
However, he posits: “It seems that both the legislator and the regulator are already working on the firm assumption that a two-year extension of the existing licences will need to be granted; which would arithmetically place the commencement of any new licensing regime around 2029.”
How is the industry responding?
So far, the response from the industry has been cautiously optimistic, although fears remain that over-regulation could continue to drive players towards the black market.
“It is great that the Austrian government plans to introduce an open online gambling licensing system with qualitative criteria,” said Simon Priglinger-Simader, president of Austrian betting and gaming association ÖVWG.
“Of course, it will be important to get a balanced law when it comes to product restrictions to make sure that Austrian players will be accepting what the future licensed market can offer them.”
Casinos Austria, meanwhile, did not respond to a request for comment from iGB. However, the company slammed the opening of the licensing scheme in Der Standard as a “reward for lawbreakers”.
“I can operate illegally right up until the last day, settle any legal proceedings, pay the taxes and then apply for a licence,” spokesperson Patrick Minar told the newspaper, criticising the plans to allow grey market operators into the legal market.
What should operators keep an eye on in Austria?
The coming months are likely to be busy. The draft law will now form the basis of negotiations between Austria’s three governing parties – the Social Democrats, liberal NEOS and centre-right People’s Party – that will commence in June, along with a public consultation. Although major changes aren’t expected, there could be some minor amendments on the table.
The government will have to be quick, however, as it is a race against time to pass the law by the summer recess. And, as Stadler points out, “the parliamentary process has not even yet been formally initiated”.
Austria would then have to notify the EU Commission – with a three-month standstill period – and could potentially face legal challenges.
As 2027 nears – and, with it, the expiry of an important group of licences – we are likely to learn more about what form the tender process will take and, most importantly, when the multi-licence market will finally be open for business.
