Austria’s playing panorama could quickly bear vital adjustments, with 2025 shaping as much as be a pivotal 12 months for the business. As the nation prepares to challenge new on-line on line casino licenses, discussions are intensifying about ending the long-standing monopoly held by Casinos Austria.
Casinos Austria has been the nation’s sole licensed operator for on-line playing since 2012, beneath a 15-year settlement that’s set to run out on September 30, 2027. However, with the licensing tender course of anticipated to start out this 12 months, there may be rising hypothesis that Austria will transition to a multi-license mannequin, permitting non-public operators to enter the market legally for the primary time.
Industry stakeholders have lengthy criticized Austria’s present monopoly system, arguing that it stifles competitors, limits shopper alternative, and fails to curb unregulated playing. According to Simon Priglinger-Simader, vice chairman of the Austrian Betting and Gaming Association (OVWG), the second for reform has arrived.
“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,” Priglinger-Simader advised iGaming Business.
If Austria is to introduce an open licensing system, he emphasised that preparations should start in 2025 to make sure a easy transition.
Political Uncertainty Could Shape Gambling Reform
While business consultants see 2025 as a window for reform, the political scenario in Austria stays fluid. The nation is in the method of forming a brand new authorities, with the Freedom Party (FPÖ), which gained probably the most votes in September 2024, presently negotiating a coalition settlement with the People’s Party (ÖVP).
Whether the FPÖ-ÖVP authorities will again playing reform remains to be unsure. However, Dr. Arthur Stadler, founding companion of regulation agency Stadler Völkel, believes that no matter which events take energy, the necessity for added tax income could push the federal government towards regulation.
“It seems that there is a center-right government coming in in Austria. Still, it’s not yet set in stone that this coalition or any other will rule Austria. However, what is clear is that any Austrian government will desperately need money for the budget – and a broader [gambling]
licensing regime could deliver further income for the state,” Stadler defined.
Austria has additionally been coping with authorized battles involving unlicensed operators, notably these licensed in Malta however working in the Austrian market. If the federal government implements a clear, aggressive licensing system, it might resolve these disputes and set up clearer rules for all on-line playing operators.
Previous Attempts to Reform Gambling Laws
Efforts to modernize Austria’s playing legal guidelines have been proposed earlier than however have repeatedly failed. During 2017-2019, the FPÖ advocated for the tip of the monopoly, arguing that Casinos Austria’s exclusivity restricted tax revenues and inspired black market exercise. However, resistance from the ÖVP stalled any progress.
More lately, in late 2023, the ÖVP tried to draft new playing laws and introduce an unbiased playing authority. The initiative collapsed after opposition from the Green Party, which demanded stricter shopper safety measures.
The scenario has led to unlicensed operators gaining vital market share, with Priglinger-Simader estimating that Casinos Austria solely controls about 30% of the market. This means that many Austrian gamers are already in search of options exterior the regulated framework, reinforcing the argument that the monopoly is ineffective.
Criticism of Austria’s Licensing System
Austria’s present playing licensing course of has lengthy been criticized as biased towards Casinos Austria. In 2012, the federal government awarded a single on-line playing license to the operator, bundling it with lotteries and slot machine rights. Many business consultants imagine this course of was structured in a method that solely Casinos Austria might qualify.
“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 defined.
Adding to the controversy is the Austrian Ministry of Finance’s 33.3% stake in Casinos Austria, elevating considerations a couple of battle of curiosity in how licenses are distributed. Many inside the business are calling for the institution of an unbiased regulatory authority to supervise licensing and enforcement in a extra clear and honest method.
If reform is delayed, authorized challenges from operators in search of honest entry to the market might come up, doubtlessly complicating the transition additional. Stadler estimates that establishing a brand new regulatory construction might take as much as three years, making it important for the federal government to behave shortly if it needs to have a aggressive market in place earlier than 2027.
The Bigger Picture: European Gambling Trends
Austria’s potential shift towards a aggressive playing market aligns with broader tendencies in European playing regulation. The regulated European playing was anticipated to succeed in €137 billion in income in 2024, with on-line playing accounting for 40% (€55 billion) of the overall.
Sports betting and lotteries are the fastest-growing on-line playing sectors, with sports activities betting anticipated to develop at 8.6% yearly via 2029. Denmark, which efficiently moved from a monopoly to a multi-license mannequin, has demonstrated how competitors can enhance tax income and enhance shopper protections.
Despite this development, Europe continues to grapple with unregulated playing markets. Estimates recommend that 21% of on-line playing exercise in Europe happens exterior licensed frameworks, equating to an unregulated market value roughly €13 billion.
Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), has argued that multi-licensing is one of the simplest ways to handle these points.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer stated. “It brings gambling activity into the regulated market, protects consumers and generates significant tax revenue.”
Will Austria Finally Embrace Gambling Reform?
With Casinos Austria’s license set to run out in 2027, Austria is at a vital second in its playing coverage. The nation’s monopoly system is without doubt one of the final in the EU, alongside Poland, and has confronted rising requires reform from each business leaders and authorized consultants.
A transition to a multi-license system might convey Austria in line with different European markets, encouraging competitors, transparency, and better tax revenues. However, the incoming authorities’s stance on playing regulation stays unclear, leaving the business ready for definitive motion.
With key political selections anticipated in 2025, the way forward for Austria’s playing market hangs in the steadiness.
Source:
Austria likely to regulate online gambling market this year, say experts , igamingbusiness.com, February 5, 2025
