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Austria is on the brink of significant gambling reform as political changes and the impending expiry of Casinos Austria’s monopoly license create a rare opportunity for regulatory overhaul. Industry experts believe 2025 could mark the beginning of a multi-operator licensing system, ending decades of state-backed control over the online gambling sector.
For years, Austria has maintained a monopoly in the online gambling market, with Casinos Austria holding the exclusive license. However, this model has faced increasing scrutiny due to the rise of unlicensed operators and the limitations it places on consumer choice. Black-market platforms have flourished, attracting local players with a wider range of offerings, while also avoiding Austrian taxes and consumer protection regulations.
The 15-year exclusive license granted to Casinos Austria is set to expire on September 30, 2027, creating a crucial opening for change. The Austrian government is expected to initiate a tender process for new online casino licenses this year, which could pave the way for a more competitive and transparent gambling landscape.
The future of Austria’s gambling regulations will largely depend on the country’s evolving political landscape. Following the September 2024 elections, the center-right People’s Party (ÖVP) is in coalition talks with the right-wing Freedom Party (FPÖ), which secured the largest share of votes. If successful, the coalition could introduce long-awaited changes to the gambling framework.
Legal experts and industry stakeholders see this moment as a crucial turning point. Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), expressed optimism, stating, “For the first time in over five years, politicians are open to discussions about moving away from the monopoly system.”
The FPÖ has previously advocated for liberalizing the online gambling market. During the 2017-2019 coalition government with ÖVP, the party pushed for reform, arguing that a monopoly restricts competition, fuels the illegal market, and limits potential tax revenue. However, their efforts faced resistance from the ÖVP at the time. With growing financial pressures on the government, reforming the gambling market could now be seen as a way to boost tax revenues and improve market regulation.
The European Gaming and Betting Association (EGBA) and other industry groups have long criticized Austria’s monopoly, pointing to successful regulatory models in Denmark and other European countries. These nations have adopted multi-licensing systems, leading to:
A report from the International Betting Integrity Association (IBIA) supports these arguments, highlighting that licensed competition leads to a safer and more sustainable gambling environment. Currently, only around 30% of the Austrian gambling market operates under the legal monopoly, indicating that most players are using offshore or unlicensed platforms.
Despite the momentum for reform, Austria faces several legal and regulatory hurdles. The 2012 license awarded to Casinos Austria has been heavily criticized for its lack of transparency and alleged favoritism. Since the Austrian finance ministry holds a 33.3% stake in Casinos Austria, critics argue that the process was designed to maintain the monopoly.
Industry experts, including Dr. Arthur Stadler, founding partner at Vienna-based law firm Stadler Völkel, emphasize the need for an independent regulatory authority. This would prevent conflicts of interest and ensure a fair licensing process for all operators. However, setting up such an authority and implementing new regulations could take two to three years, meaning that swift government action is necessary.
The window for reform is now open, and Austria’s new government will play a decisive role in shaping the country’s gambling future. If the new coalition embraces change, the licensing process could begin in 2025, allowing private operators to enter the market ahead of Casinos Austria’s license expiry in 2027. As Dr. Stadler puts it, “This is the year of transformation. If Austria is going to modernize its online gambling market, the time to act is now.”
Sources: IGB, iGaming Express
