Austria Moves Toward Gambling Reform as Monopoly Nears Expiration

Austria's gambling industry may be on the verge of a major transformation as the government moves closer to opening the market to multiple operators. With Casinos Austria’s exclusive license set to expire on September 30, 2027, the government is expected to begin the licensing process this year, paving the way for a more competitive online gambling environment.

Industry leaders have long pushed for an end to Austria’s monopoly, arguing that a multi-license system would benefit both players and the economy. Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), stated that this is the first real chance for reform in years.

“We are in a very interesting time at the moment, because it’s the first time for five or more years that politicians have been open to talk to us and are considering a reform and move away from the monopoly system,” Priglinger-Simader told iGaming Business.

If Austria wants to move to an open licensing model, preparations must start in 2025 to avoid delays.

Government Negotiations Will Shape the Future

The push for reform depends heavily on the formation of Austria’s next government. The Freedom Party (FPÖ), which won the most votes in the September 29, 2024 elections, is currently in coalition talks with the People’s Party (ÖVP). If the two parties successfully form a government, gambling reform could be part of their agenda.

However, it remains unclear if the FPÖ will back a licensing overhaul. Dr. Arthur Stadler, founding partner at law firm Stadler Völkel, suggested that regardless of which party takes power, the government’s need for tax revenue could drive gambling reform forward.

“The time is now to be creative and responsible when allowing such a shift for the national online casino market,” Stadler explained, adding that Denmark’s successful transition from a monopoly to a competitive system could serve as a model for Austria.

One of the key issues the new government must address is the ongoing legal battles between Austria and unlicensed operators. Many Malta-licensed gambling companies have continued operating in Austria despite lacking local approval. A new licensing framework could help resolve these disputes, ensuring that all operators follow the same regulatory standards.

Past Attempts at Gambling Reform Have Stalled

Efforts to modernize Austria’s gambling laws have been repeatedly blocked over the years. Between 2017 and 2019, the FPÖ supported opening the market, arguing that Casinos Austria’s exclusive control limited consumer choice, failed to curb the black market, and reduced potential tax revenue. However, opposition from the ÖVP prevented progress.

More recently, in late 2023, the ÖVP attempted to introduce a new gambling bill and establish an independent gambling authority. The legislation collapsed after opposition from the Green Party, which demanded stricter consumer protections.

Currently, Casinos Austria controls only about 30% of the country’s gambling market, with unlicensed operators dominating the rest. Priglinger-Simader noted that players continue to seek alternative platforms, highlighting the ineffectiveness of the monopoly system.

Austria’s Licensing System Under Fire

Austria’s existing licensing process has been criticized for years, as it favored Casinos Austria. In 2012, the government awarded a single online gambling license to Casinos Austria as part of a package deal that also included lottery and slot machine rights.

“The licensing regime, as well as the awarding procedure, were criticized as very discriminatory as three products (lotteries, slots, online casinos) were awarded in a package,” Stadler explained.

Another concern is the Austrian Ministry of Finance’s 33.3% ownership stake in Casinos Austria, which has led to conflict-of-interest accusations in the licensing process. To address these issues, industry leaders are calling for an independent regulatory body to oversee licensing decisions fairly and transparently.

Without reform, legal challenges from operators could delay or complicate the transition, Stadler warned. He estimates that setting up a new regulatory structure could take up to three years, making it critical for the government to act quickly if it wants a competitive market before 2027.

Austria and the European Gambling Market Shift

Austria’s potential move toward a competitive gambling market aligns with broader trends across Europe. The regulated European gambling market is expected to generate €137 billion in revenue in 2024, with online gambling accounting for 40% (€55 billion) of that total.

Key trends include:
✔ Sports betting and lotteries lead the online sector – Sports betting is projected to grow 8.6% annually through 2029.
✔ Denmark’s multi-license model has increased tax revenue and kept more players in the regulated market.
✔ Black market gambling remains a concern – An estimated 21% of online gambling in Europe occurs outside regulated markets, representing a €13 billion unregulated market.

Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), argues that a competitive licensing system is key to attracting players away from unlicensed operators.

“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer said. “It brings gambling activity into the regulated market, protects consumers and generates significant tax revenue.”

Austria remains one of the last EU countries, along with Poland, to maintain a gambling monopoly, despite growing calls for reform.

What’s Next?

With Casinos Austria’s monopoly set to expire in 2027, Austria is at a critical moment in its gambling policy. Moving to a multi-license system would align the country with modern European regulations, encouraging competition, transparency, and better consumer protections.

However, the direction Austria takes will depend on the next government’s stance on gambling reform. If the new coalition supports change, the licensing process could begin this year.

Source

Austria may end gambling monopoly with new licensing plan, lcb.org, February 6, 2025