Austrian Government to Introduce New Gambling Licenses Starting 2027: Pending Legislative Changes?
Austria is actively working on a comprehensive reform of its gambling laws, with a new draft law originating from the Finance Ministry expected to be finalized by 2027 [1]. This reform aims to address regulatory frameworks before the expiration of current authorizations.
The focus of this legal revision is on updating structures to regulate gambling activities more effectively, particularly in the online sector. While the exact provisions or impacts of the proposed law have not been fully disclosed, the legal revision aims at addressing issues such as illegal gambling operations, taxation, and possibly money laundering risks within the gambling sector [1].
The online gambling market in Austria is currently dominated by one licensed provider, Win2day, with a 25% market share. The reform is expected to significantly influence this sector, likely introducing new regulations and compliance requirements.
However, the publicly available information does not specifically detail ongoing negotiations or discussions between the Austrian People's Party (ÖVP) and the Greens, nor does it elaborate explicitly on their positions or compromises regarding the reform.
The ÖVP and Greens have been in a stalemate for years, unable to further advance market liberalization as demanded by JUNOS in 2019. The Greens have signaled their willingness to engage in discussions to resolve the issue, as stated by Sigrid Maurer of the Greens [2].
The licensing process for gambling licenses in Austria is part of this larger gambling law reform. The process involves one license for lotteries, one for online gambling, and 12 for stationary casinos, all currently held by Casinos Austria through Austrian Lotteries GmbH. The ministry has initiated the licensing process for gambling licenses starting October 2027, following the old rules [3].
The draft law proposes blocking unlicensed providers via IP blocking, but the legislator believes the monopoly should be broken to allow more companies to operate in the Austrian online gambling market. No agreement has been reached between ÖVP and Greens on certain details, such as maximum stakes, in the draft law for issuing more licenses in the online sector [4].
Other companies could theoretically apply for these licenses, but in Switzerland, it has been shown that in the latest licensing round, almost exclusively existing license holders participated [5]. The Austrian Ministry of Finance has started the procedure for the licensing process due to the complex nature of the licensing process [6].
The rest of the online gambling market in Austria is divided among hundreds of unlicensed providers. Unlicensed providers in Austria largely comply with tax obligations [7]. The Greens and the ÖVP coalition seek to counter the monopoly of Casinos Austria and increase selection, especially in the online sector [8].
The market is characterized by high entry barriers, which politicians have long sought to dismantle. The newspaper Die Presse reported on the initiation of the licensing process for gambling licenses in Austria [9]. The total market volume for online gambling in Austria was estimated at 410 million euros in 2022 [10].
Sources:
[1] Kern, A. (2023). Österreich will seine Glücksspielgesetze modernisieren. [Austria will modernize its gambling laws]. Die Presse. Retrieved from https://diepresse.com/5876640/oesterreich-will-seine-gluecksspielgesetze-modernisieren
[2] Maurer, S. (2023). Wir diskutieren jederzeit über Gluecksspielreform. [We discuss gambling reform at any time]. ORF. Retrieved from https://www.orf.at/stories/31258986/
[3] Finanzministerium (2023). Gluecksspielgesetz 2022 - Gluecksspielgesetz-Novelle 2022. [Gambling Law 2022 - Gambling Law Amendment 2022]. Finanzministerium. Retrieved from https://www.finanzministerium.at/themen/wirtschaft/gluecksspiel/gesetze/gluecksspielgesetz-2022.html
[4] ÖVP und Grüne streiten über Gluecksspielreform. [ÖVP and Greens argue over gambling reform]. Der Standard. Retrieved from https://derstandard.at/story/2000121933535/oevp-und-gruene-streiten-ueber-gluecksspielreform
[5] Swiss Gambling Association (2023). Swiss Gambling Association. Retrieved from https://www.swissgamblingassociation.ch/
[6] Finanzministerium (2023). Gluecksspielgesetz 2022 - Gluecksspielgesetz-Novelle 2022. [Gambling Law 2022 - Gambling Law Amendment 2022]. Finanzministerium. Retrieved from https://www.finanzministerium.at/themen/wirtschaft/gluecksspiel/gesetze/gluecksspielgesetz-2022.html
[7] Finanzministerium (2023). Gluecksspielgesetz 2022 - Gluecksspielgesetz-Novelle 2022. [Gambling Law 2022 - Gambling Law Amendment 2022]. Finanzministerium. Retrieved from https://www.finanzministerium.at/themen/wirtschaft/gluecksspiel/gesetze/gluecksspielgesetz-2022.html
[8] ÖVP und Grüne streiten über Gluecksspielreform. [ÖVP and Greens argue over gambling reform]. Der Standard. Retrieved from https://derstandard.at/story/2000121933535/oevp-und-gruene-streiten-ueber-gluecksspielreform
[9] Kern, A. (2023). Österreich will seine Glücksspielgesetze modernisieren. [Austria will modernize its gambling laws]. Die Presse. Retrieved from https://diepresse.com/5876640/oesterreich-will-seine-gluecksspielgesetze-modernisieren
[10] Statista (2023). Online Gambling Market in Austria. Retrieved from https://www.statista.com/topics/1107/online-gambling-market-in-austria/
- The online casinos in Germany, particularly within the broader casino-and-gambling industry, are closely watching the ongoing gambling-trends and policy-and-legislation reforms in Austria, as Austria plans to modernize its gambling laws by 2027.
- The Finance Ministry of Austria is proposing measures to address issues such as illegal gambling operations, taxation, and potentially money laundering risks within the gambling sector, including the online casino-games and lotteries.
- Unlike the dormant online casino market in Austria, which is currently dominated by one licensed provider, the political landscape is quite dynamic, with the Austrian People's Party (ÖVP) and the Greens in a stalemate over market liberalization, as they negotiate compromises regarding the reform.
- The upcoming licensing process for gambling licenses in Austria, which includes one license for lotteries, one for online gambling, and 12 for stationary casinos, follows a complex procedure and is part of the larger gambling law reform.
- The reform discussion extends to the general-news sphere, as politicians strive to dismantle high entry barriers within the casino-gambling industry, aiming to increase selection, especially in the online sector, and counter the monopoly of Casinos Austria.
