Austria to Maintain Gambling Monopoly Under New Coalition Agreement
Austria’s new three-party coalition has opted to retain the country’s gambling monopoly rather than open the market to competition. The agreement, finalized on 2 March, confirms that the government will extend the single online casino license model while increasing enforcement against unlicensed operators.
One License, Stricter Enforcement
The coalition, formed by the People’s Party (ÖVP), Social Democrats (SPÖ), and the Liberal Party (NEOS), has confirmed that when the current online casino license expires in 2027, only one new license will be granted for another 15 years.
The existing license is held by Austrian Lotteries, which operates Win2Day under the oversight of Casinos Austria.
Authorities plan to intensify action against unlicensed operators using measures such as internet and payment blocking.
The government aims to curb the rise of offshore gambling platforms that operate without Austrian regulation.
Conflict of Interest Concerns
The monopoly model has faced criticism since Austrian Lotteries won its first exclusive license in 2012.
The Austrian finance ministry, which awarded the license, also holds a 33.3% stake in Casinos Austria and is responsible for collecting gambling taxes.
Critics argue this dual role creates a conflict of interest, a concern shared in other European markets with state-controlled gambling.
New Independent Gambling Authority
To address these concerns, the coalition plans to establish an independent gambling authority during the current legislative term.
This body would take over the licensing process from the finance ministry and oversee both online and land-based gambling regulation.
However, with several licenses expiring in 2027, experts warn that time is running out. Legal challenges to the licensing process could delay implementation.
“It’s more than evident that these licensing proceedings are going to be challenged at administrative courts as well as potentially at the Constitutional Court, so the final awarding of the online casino licence could take some time,” said Dr. Arthur Stadler, founding partner at Vienna-based law firm Stadler Völkel.
Tax Increases on the Horizon
The industry will also face rising taxes under the new administration. Austria currently imposes a 2% duty on betting revenue, but the government plans to gradually increase this to 5%, aligning with Germany’s tax model.
Reports suggest the Austrian parliament may vote on this staged tax hike as early as this week.
Reforming Sports Betting and Loot Boxes
The coalition aims to standardize sports betting regulations across Austria, which are currently managed at the state level.
However, this change requires a two-thirds parliamentary majority and state-level approval, making passage unlikely.
The government also plans to regulate loot boxes in video games under gambling laws, introducing stricter rules for anti-money laundering and player protection.
These measures could significantly impact the gaming industry and lead to tighter restrictions on in-game purchases.
Austria’s decision to maintain a monopoly and impose stricter regulations signals a shift towards tighter state control over gambling.
While the introduction of an independent regulator may address some concerns, legal challenges and tax increases could further complicate the market landscape.
Source: iGB