Austria has taken a major step toward reshaping its gambling market. After weeks of intense negotiation, the government submitted a draft of the new gambling law to parliament, aiming to create a regulated multi-operator online market. The existing monopoly, held by Austrian Lotteries’ subsidiary Win2Day, is set to end when their 15-year license expires on October 1, 2027. However, for those operating within Austria’s EU-licensed grey market, a catch exists: they must cease operations by January 2027 or face an 18-month market ban. This hiatus extends to two years for those still operating by 2030.
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Transition Timeline and Regulatory Challenges
Political analyst Felix Geyer raises questions about the timeline feasibility of Austria’s ambitious plans. If the law passes in July, a three-month EU notification period will follow, potentially activating the law in October. This tight schedule leaves just a year for the Finance Ministry to establish the new tender process, review applications, and issue licenses. But there’s also the task of separating and retaining the monopoly for the lottery license. “Given Austria’s slow political processes, it’s doubtful licenses will be issued in 12 months,” Geyer told iGB. Still, speculation about Malta possibly delaying the EU notification process adds another layer of uncertainty.
Good Actors and Market Dynamics
On June 15, Austria’s Krone newspaper reported plans for an 18-month “cooling off” period, favored by the Chamber of Commerce, the People’s Party (ÖVP), and Casinos Austria. This period could benefit operators like Tipico and Merkur, who’ve already exited the market. However, EU-licensed operators active in the past 18 months will face delays. Still, geyer warns of setting a dangerous precedent by not rewarding compliant operators, suggesting that in future scenarios, companies might elect to operate until the last possible moment.
Black Market Concerns
According to the OVWG, the transition could inadvertently benefit the black market, pushing players towards unregulated offerings. “Forcing European operators out could drive players to the black market,” stated OVWG President Simon Priglinger-Simader. Social Democrats (SPÖ) reportedly aimed for a faster market opening to implement player protections, but ultimately, a nine-month transition was agreed upon.
The Financial Entry Barriers
The proposed entry into Austria’s market comes at a high price. The transition period demands settling player claims and taxes, coupled with a proposed 45% online tax rate. Arthur Stadler of Stadler Partner law firm notes the steep entry barriers, calling them “essentially a paywall into the licensed market.” Operators must decide if it’s worth the financial burden. A blackout period further complicates tax recovery efforts, leaving open questions about the government’s true priorities.
Channelisation and Player Protection Goals
The government’s challenge lies in creating legal offerings attractive enough to draw players away from the black market. The Finance Ministry insists the revised law aims to achieve high channelisation and strong player protection. However, stringent requirements like mandatory cooling-off periods, stake caps, and spin speed limits may drive players to alternative options. Learning from Germany’s experience, where the black market accounted for over half of GGR, Austria must balance regulations with marketability. Austria’s Parliament is expected to vote on the gambling law by early October. The industry waits to see if it can maneuver its way into compliance with this complex new regime.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
