Date: 12.09.2024

by Sebastian Warowny

Austria’s Gambling Laws Face Urgent Reform Following Supreme Court Ruling

The Austrian Association for Betting and Gambling (OVWG) has urged immediate reform of the country’s gambling regulations following a Supreme Court decision that could significantly impact the market. The ruling highlights weaknesses in Austria’s existing legal framework and calls for a structured dialogue among stakeholders to ensure a sustainable and fair solution.

Supreme Court Decision Signals Major Shift in Gambling Regulation

The Austrian Supreme Court (OGH) has issued a pivotal ruling allowing previously unlicensed online gambling operators to reclaim winnings paid out to Austrian players before regulations were in place. This decision adds a new element to the ongoing legal cases concerning player reimbursements in Austria, Germany, and the Netherlands.

Traditionally, these cases have centered on players seeking to recover their losses from unlicensed operators. However, the court’s ruling also permits operators to reclaim winnings that were paid out, creating a notable precedent in the legal landscape of gambling regulation.

Current Gambling Laws in a ‘Legal Vacuum’

“This ruling reveals clear weaknesses in the current gambling law and shows how urgently Austria needs a comprehensive reform of gambling regulation,” said OVWG president Claus Retschitzegger. He emphasized that the court’s decision has exposed a “de facto legal vacuum for consumers,” underlining the lack of a coherent regulatory framework.

The Supreme Court noted that Austria’s gambling laws were designed with player protection in mind but also recognized broader concerns such as preventing illegal gambling. The ruling highlighted that allowing players to reclaim losses while keeping their winnings could lead to risk-free gambling behavior, potentially increasing addiction risks.

Austria Behind the EU in Gambling Regulation

According to the OVWG, Austria has fallen behind other European countries in terms of its gambling regulation. The association underscored that a market as intricate and sensitive as the gambling industry requires “clear and fair rules” to maintain player protection and the integrity of the entire system.

“A market as complex and sensitive as the gambling sector needs clear and fair rules to ensure both the protection of players and the integrity of the entire system,” Retschitzegger stated.

Call for a Structured Dialogue and Immediate Reform

The OVWG has called on politicians to act quickly and engage in a structured dialogue that involves all relevant parties in the reform process. “It is essential that politicians not only act quickly, but also involve all relevant parties – from providers to player protection to the authorities – in the reform process,” Retschitzegger added.

The association emphasized that any reform must align with European standards while considering Austria’s unique needs. OVWG is advocating for an immediate start to the reform process to ensure a balanced and fair gambling market in Austria.