Austria May End Gambling Monopoly With New Licensing Plan

Austria is approaching a major turning point in its gambling regulations, with industry stakeholders anticipating the end of its long-standing monopoly as the government prepares to issue new online casino licenses. With Casinos Austria’s exclusive 15-year license set to expire on September 30, 2027, authorities are expected to open the tender process this year, creating the potential for a more competitive gambling market.

Industry leaders have long pushed for reform, arguing that a multi-license system would increase competition, boost consumer protections, and generate higher tax revenues. Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), said this could be the first real opportunity for change.

“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,” he told iGaming Business.

If Austria wants to transition to an open licensing model, Priglinger-Simader emphasized that preparations must begin in 2025.

Government Negotiations Will Determine the Future

The push for reform hinges on Austria’s new government, which is still being formed. The Freedom Party (FPÖ), which secured the largest share of votes in the September 29, 2024 elections, is currently negotiating a coalition agreement with the People’s Party (ÖVP). If the two parties successfully form a government, gambling regulation could be on their agenda.

However, there is no certainty on whether the FPÖ will support reform efforts. Dr. Arthur Stadler, founding partner at law firm Stadler Völkel, noted that regardless of which party takes charge, Austria’s government will be looking for ways to increase tax revenues, making gambling reform a potential option.

“The time is now to be creative and responsible when allowing such a shift for the national online casino market,” Stadler said, adding that Denmark could serve as a model for Austria.

For years, legal battles have plagued Austria’s online gambling sector, particularly involving operators licensed in Malta who have offered services without local approval. A licensing overhaul could resolve these disputes, bringing all operators under a single regulatory framework and providing clear guidelines for market entry.

Past Attempts at Gambling Reform

Efforts to modernize Austria’s gambling laws have surfaced before. Between 2017 and 2019, the FPÖ advocated for opening the market, arguing that Casinos Austria’s monopoly restricted consumer choice, failed to curb black market activity, and limited tax revenue potential. However, resistance from the ÖVP prevented the changes from taking effect.

More recently, in late 2023, the ÖVP attempted to draft new gambling regulations and establish an independent gambling authority. However, opposition from their coalition partner, the Green Party, led to the bill being abandoned.

The Austrian government currently controls only about 30% of the gambling market, with unlicensed operators dominating the remaining share. This has fueled concerns about the effectiveness of the monopoly, with Priglinger-Simader noting that players continue to seek out alternative platforms despite regulatory restrictions.

Criticism of Austria’s Licensing System

Austria’s current licensing process has been widely criticized for favoring Casinos Austria. In 2012, the country’s only online gambling license was awarded to the operator as part of a package that also included lotteries and slot machine rights. Industry experts argue that the process was designed in a way that only Casinos Austria could meet the requirements.

“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.

Further controversy arises from the Austrian Ministry of Finance’s 33.3% stake in Casinos Austria, raising concerns about a conflict of interest in how licenses are awarded. To address this issue, industry leaders are calling for an independent regulatory body to oversee the licensing process fairly.

Without reform, legal challenges could delay or complicate the transition. Stadler warned that creating a new regulatory structure could take two to three years, making it crucial for Austria to act quickly if it wants a competitive market in place before 2027.

European Gambling Market Trends and Austria’s Position

Austria’s potential shift to a multi-license system aligns with broader trends in European gambling. The regulated gambling market in Europe is expected to generate €137 billion in revenue in 2024, with online gambling making up 40% (€55 billion) of that total.

Lotteries and sports betting are leading the online sector, with sports betting projected to grow by 8.6% annually through 2029. Denmark successfully transitioned to a multi-license system, which has increased tax revenue while keeping consumers within a regulated environment.

However, the European market also faces challenges. Black market gambling remains a major issue, with an estimated 21% of online gambling occurring outside regulated frameworks—representing a €13 billion unregulated market.

Maarten Haijer, EGBA Secretary General, emphasized that a competitive licensing model is key to drawing players away from illegal platforms.

“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.”

As Casinos Austria’s license nears its expiration date, the country faces a defining moment in its gambling policies. Along with Poland, Austria remains one of the last EU nations maintaining a monopoly, despite growing pressure for reform.

A more open licensing system could align Austria with other European markets, encouraging competition while ensuring strong consumer protections. However, the new coalition government will ultimately determine the future of Austria’s gambling regulations.

With a critical decision ahead in 2025, the industry is watching closely to see if Austria will embrace reform or maintain the status quo.

Source:

Austria likely to regulate online gambling market this year, say experts, igamingbusiness.com, February 5, 2025.