Austria’s Ministry of Finance is expected to release long-awaited gambling reform proposals, potentially ending the country’s current online gaming monopoly. Presently, Austria operates under a single iGaming licence held by win2day, a subsidiary of Casinos Austria. This monopoly, which also extends to land-based casinos, has been in place for 15 years. With the licence set to expire in 2027, there is growing speculation that Austria may finally open its doors to a competitive iGaming market.
The coalition government, formed in March, consisting of the centre-right People’s Party (ÖVP), liberals (NEOS), and the centre-left Social Democrats (SPÖ), hinted at this possibility in their February coalition agreement. They proposed a “further development” of the gambling monopoly, leaving room for discussions on market liberalisation.
Simon Priglinger-Simader, President of the Austrian Betting and Gaming Association (OVWG), anticipates that the draft for the reform could be revealed any day. He mentions that positive signals have been received from all political factions regarding online gambling licensing reform.
The forthcoming proposals will initiate political negotiations involving the SPÖ, ÖVP, and NEOS. These discussions aim to draft a new gambling bill by early next year, potentially leading to new regulations by the summer. Such changes could mark the end of Austria’s longstanding battle against a monopolistic system, frequently scrutinized by the European Court of Justice (ECJ).
Priglinger-Simader expressed optimism, noting that the sector is closer to reform than at any time in the past decade. Previous attempts to end the monopoly were thwarted by political differences, but current conditions seem favourable for change.
The urgency for a new framework is compounded by the expiration of six of the twelve national offline casino licences and the single online gambling licence by 2027. This scenario presents a race against time to draft new licensing regulations, potentially providing the government a fresh revenue source. Arthur Stadler, an attorney specializing in betting and gaming law, highlights Austria’s concerning fiscal situation, suggesting that new licensing fees could help bridge national budget gaps.
Recent tax hikes have raised online gambling taxes from 40% to 45% and betting duties from 2% to 5%. The OVWG warns that these high rates might hinder channelisation efforts, referencing research from Germany showing that each percentage increase in tax above 30% could lead to a 1% shift to black-market operators.
Austria’s current channelisation challenges are a driving force behind the proposed reforms. Despite being the sole legal online gambling provider, Austrian Lotteries has struggled to guide players towards legal options, placing its monopoly on shaky legal ground. The ECJ mandates that monopolies must genuinely serve public interests.
The future structure of Austria’s online gambling market remains uncertain. The number of licences and their allocation will be determined in ongoing political discussions. Germany’s failed attempt at capping sports betting licences serves as a cautionary example, suggesting that Austria may consider setting standards and costs that limit operators’ entry, or possibly offering unlimited licences.
Player protection is another critical aspect of the reform. The coalition government has committed to enhancing enforcement against the black market, considering measures such as IP-blocking and payment blocking. However, Stadler warns that these need careful implementation to comply with EU regulations.
Austria’s delayed regulation of the online market may offer a unique advantage, allowing lawmakers to learn from other countries’ experiences and avoid a trial-and-error approach. Stadler notes that Austria’s position as one of the last countries maintaining an online gambling monopoly could enable it to adopt the most effective measures from other jurisdictions.
Industry stakeholders are also keenly watching for the introduction of an independent gambling authority, which could shift jurisdiction away from the Ministry of Finance. While there are moves to address potential conflicts of interest—such as transferring the stake in Casinos Austria from the Finance to the Economics Ministry—a truly independent oversight body would require substantial time to establish.
The OWVG predicts that creating an independent gambling commission might be postponed until after new licences are issued. Given the tight timeline, if the tender process begins as expected next summer, it might not be completed before autumn 2027 due to likely legal challenges. The Finance Ministry is reportedly considering extending current tenders by a year to 2028, leveraging provisions in the current Gambling Act, though this could face resistance from operators and European courts.
Despite potential delays, the industry might soon celebrate the long-awaited reform of one of Europe’s most resistant online gaming markets, marking a significant shift in Austria’s approach to iGaming.
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