As the Austrian Finance Ministry prepares a draft to form the basis for its new casino tender process in the coming months, operators have once again called for an end to the market’s “backward” gambling monopoly.
Austria’s Ministry for Finance has confirmed it is working on a new draft law ahead of the market’s upcoming monopoly tender renewal in 2027.
When approached by iGB’s sister publication GGB, the Austrian Finance Ministry was tight-lipped about potential plans to end the monopoly model. However, a spokesperson confirmed that the ministry was working on a draft law that would form the basis for the new tender in the coming months.
The draft sets out “uniform player protection standards” across online and land-based operators, “age-dependent loss-limits” and the creation of an independent gambling authority, the spokesperson said. It also details plans to crack down on unlicensed operators through payment blocking, domain blocking and large financial penalties.
Government makes U-turn on leaked gambling reform draft
In December a leaked draft of proposed gambling “reforms” from the Finance Ministry appeared to support the status quo. In it, the ministry set out plans for a continuation of the monopoly, coupled with an aggressive crackdown on “illegal” online operators. Proposed measures included payment blocking, domain blocking, undercover “test plays” by regulators and tighter restrictions on advertising by foreign casinos.
Following widespread criticism, however, the ministry quickly rolled back its plans, claiming that the leaked draft would be changed.
Last year the government hinted at the monopoly coming to an end, as Austria’s new three-party coalition cryptically promised a “further development” of the gambling monopoly in their February coalition pact.
The current Austrian gambling monopoly tender is up in the next year, which could also indicate a shift from the legacy model.
At present, a single licence is available in Austria for lotteries and online gaming products. This 15-year permit is held by Austrian Lotteries’ brand Win2day – a subsidiary of Casinos Austria, which also holds all 12 land-based casino licences. Austria’s state holding company, ÖBAG, in turn owns a 33% stake in Casinos Austria.
Austrian attorney Arthur Stadler told iGB in November that six of 12 of the existing 15-year national offline casino licences would expire in 2027, along with the single online gambling licence.
The remaining six licences for offline casinos “will expire in 2030”, Stadler said.
Worst and best-case scenarios for sector
Although international operators say they would welcome improved player protections, the key question is whether a crackdown on unlicensed operators would be part of – or instead of – a future multiple-licence model. Depending on party negotiations, the outcomes could range from a clear “worst-case” to a “best-case” scenario.
A worst-case scenario for the industry would look much like the one initially sketched out in the Finance Ministry’s leaked December draft: a continued monopoly paired with much tougher enforcement measures against black- and grey-market operators.
However, as Austria trade body (OVWG) president Simon Priglinger-Simader points out, a move like this could decimate the very tax revenues the government is so desperate to increase. “Payment blocking should only come after licensing,” he said. “Otherwise, you don’t get what you need from a budget perspective.”
In the best-case scenario for the industry – an unrestricted market opening – the OVWG expects the makeup of the market to look similar to Germany, with around 30 licensees. These would be regulated by an independent gambling authority, which the government is aiming to set up by 2029.
Sector continues to rally for end to Austria gambling monopoly
Speaking to GGB, Monika Racek, CEO of Austrian operator Admiral, insists players were increasingly turning to the black market under the current monopoly system, due to a lack of choice.
“The monopoly is leading to an ever-growing black market where players enjoy no protection whatsoever,” Racek says.
“There are no player bans, no limits and no control. The state turns a blind eye and loses not only tax revenue but, above all, control over player protection.”
Pointing to the wave of market openings across Europe, Racek calls for Austria’s “backward” system to be replaced by a multiple-licence system. “The solution is obvious,” she adds. “A sustainable and competitive framework means opening up the market to several licensed providers under clear and strict conditions.”
Similarly, Entain has called for a liberalised licensing system in Austria. “We believe it is in the best interests of all parties – most importantly for customers and the general public – that Austria adopts an open licensing system,” the operator tells GGB.
Austria’s Finance Ministry is preparing a draft for the upcoming casino tender, promising “uniform player protection standards”. But operators continue to call for market liberalisation.