With a new government due to take office as the procurement for new online casino licences begins, stakeholders in Austria predict an end to the country’s decades-long gambling monopoly and the opening of the online industry.
According to industry stakeholders, 2025 might be the year when Austria ends its online casino monopoly and awards licenses to various private operators.
This would imply that, in the next years, online casino items such as slots and table games could be fully legalized in the region for the first time.
It could also put an end to the ongoing player claims court battles that have plagued operators operating in the market under a Maltese license.
The existing monopoly-holder Casinos Austria’s 15-year licensing is set to expire on September 30, 2027, and authorities plan to begin the procurement process for new licences this year. According to experts, this represents a window of opportunity for the expansion of the online gaming business.
Regarding the current situation, Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), declared that he was “optimistic for the first time ever” that online gambling may be controlled in Austria.
“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,” explained the minister.
“Act now, or never. If they wish to break away from the monopoly, they must begin planning everything in 2025.”
Coalition talks are ongoing
The choice on whether to implement a new gaming framework will be left to Austria’s new coalition government.
After talks with the Social Democrats (SPÖ) and Liberal Party (NEOS) failed, the centre-right People’s Party (ÖVP) is negotiating a coalition agreement with the right-wing populist Freedom Party (FPÖ), which received the most votes in the 29 September elections last year.
If the talks succeed, the two parties may establish a new government in the following weeks.
“It’s a watershed moment in Austrian politics,” said Dr. Arthur Stadler, founding partner of the Vienna-based legal firm Stadler Völkel.
“It appears like a centre-right government is forming in Austria. Still, there is no guarantee that this or any other coalition will control Austria. However, it is apparent that any Austrian administration will sorely need funds for the budget, and a bigger (gambling) licensing scheme could provide more revenue to the state.
“The time is now to be creative and responsible when allowing such a shift for the national online casino market,” according to Stadler. “Other EU countries like Denmark can serve as a role model.”
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The previous coalition government contemplated gambling re-regulation
During the previous FPÖ/ÖVP partnership from 2017 to 2019, the Freedom Party strongly supported liberalizing the online gaming market.
They pushed for reform, claiming that Casinos Austria’s monopoly reduced consumer choice, made combating the illegal market more difficult, and strangled potential tax revenue. The ÖVP opposed their suggestions, therefore they were never adopted.
Nonetheless, conservatives have spoken much more positively about a regulated internet market in recent months.
Late last year, the ÖVP attempted to create new gaming laws and establish an independent regulating authority in Austria for the first time.
However, the plan failed because their Green Party coalition partners demanded on strict player safeguards and controls.
“Moment is now” for internet reform
Austria is one of the few European states with an online gambling monopoly, a condition that industry lobbyists have worked hard to change.
Maarten Haije, president and secretary general of the European Gambling and Betting Association (EGBA), urged for Austria to liberalize online gambling in December.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer wrote in a blog post. “It brings gambling activity into the regulated market, protects consumers and generates significant tax revenue.”
Sports betting, unlike casino products, is not considered gambling in Austria and is controlled at the state rather than federal level.
In internet casinos, however, there are indications that the monopoly has fueled the emergence of a strong black and grey market.
“We have a 30% market share for the monopoly in Austria, which shows that it just doesn’t work anymore,” she said.
The current tender process is “very discriminatory”
In 2012, the finance ministry granted Casinos Austria its sole online gaming license for a period of 15 years. This process, which was related to the procurement for a lottery and slots license, has been criticized as skewed by industry parties.
“The licensing regime as well as the awarding procedure were criticised as very discriminatory as three products (lotteries, slots, online casinos) were awarded in a package,” Stadler told me.
“That package was tailormade for one operator – the one and only in Austria that was able to fulfil the years-of-experience requirement for all three products and who could finally make such an application.”
Because the finance ministry also owns 33.3% of Casinos Austria, there have been allegations of a conflict of interest.
As a result, the sector is advocating for the development of an independent authority that can grant new licenses to operators.
According to Stadler, this puts pressure on the government to implement gaming regulations as soon as feasible, as judicial challenges are inevitable.
This could mean that the entire process of establishing a new body and issuing licenses could take up to two or three years.
“This is the moment,” Stadler added. “It’s the year of the snake – the year of challenges and transformations – where things could finally change in Austria. “It’s time to end the monopoly and transition to a broader licensing regime.”
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