Austria initiates process for 2029 online gambling liberalisation

(AsiaGameHub) –   Austria has initiated a review of its gambling legislation and the privileges afforded to Casinos Austria, marking the start of a regulatory journey toward establishing a liberalised online gambling market.

This move comes after a new Draft Bill was completed by the Federal Ministry of Finance, aiming to terminate the monopoly privileges of Casinos Austria for online sports betting and casino games, thereby allowing EU-licensed operators to access the Austrian market.

The initiative has received support from the three-party coalition government, which includes the Social Democratic Party (SPÖ), the Austrian People’s Party (ÖVP), and the Liberal Conservatives of NEOS.

The SPÖ’s backing is significant, representing the first instance the party has withdrawn its traditional support for Casinos Austria’s gambling monopoly. This concession was part of the agreement made by SPÖ leader Andreas Babler to facilitate government formation in 2025.

The proposed bill instructs the government to create a new liberalised framework and introduce a multi-licence system by 2029, which would conclude Austria’s position as the final EU country upholding monopoly privileges for online gambling.

For over ten years, Austria has been involved in legal conflicts at the Court of Justice of the European Union (CJEU) concerning the protection of the Casinos Austria Win2Day monopoly, facing ongoing allegations that its online gambling rules infringe upon EU market freedoms.

The situation has been further complicated by a protracted legal dispute between Austria and Malta at the EU level regarding penalties and liabilities for Austrian customers betting with Malta-licensed sites. While the CJEU has ruled in Austria’s favour, it has also advised the country to abolish monopoly privileges and align its online gambling laws with EU standards.

Central controls

Although the government is dedicated to market access for international firms, the draft proposal requires Austria to enforce stringent and centralised oversight of online gambling operations.

Suggested regulations involve cutting the maximum online stake from €10 to €2 per spin and reducing the highest possible win from €10,000 to €2,000.

Licensed operators would also need to adhere to stricter affordability checks, identity verification protocols, and centralised player protection measures managed by Austrian regulators.

The tax structure is still unresolved and is anticipated to be a major point of debate during the reforms. Austrian parliamentarians have advocated for a high-tax approach to safeguard the fiscal income currently derived from the monopoly system.

Nevertheless, worries have surfaced that Austria may be copying elements of Germany’s Fourth Interstate Gambling Treaty. Opponents contend that Germany’s mix of rigid restrictions, substantial compliance expenses, and high taxes has reduced channelisation and driven players to seek options offshore.

Casinos Austria to have its say

Casinos Austria has responded prudently to the liberalisation proposals, cautioning legislators not to benefit operators that historically served Austrian customers without a local licence. The company has proposed a “cooling-off period” to bar such operators from immediate market entry.

Company officials have stated that Casinos Austria is ready to furnish regulators with a roster of operators it deems ‘bad actors that knowingly circumvented Austrian gambling laws’.

Concurrently, the firm has advised policymakers to concentrate on channelisation goals, stating that the regulated market needs to stay sufficiently appealing to rival offshore sites.

Casinos Austria asserts that player safety objectives will be unattainable if customers shift to unregulated platforms outside Austrian jurisdiction.

Land-based sector seeks protection

The discussion also covers the land-based sector, with MPs and regional interests expressing apprehension about the fate of Austria’s physical casino industry, a key provider of jobs, tourism income, and tax revenue.

Sector advocates have called on lawmakers to safeguard what they term a “tax-effective” casino network that delivers reliable revenue for national and local governments. Multiple states are predicted to strongly oppose changes that might impair the competitiveness of land-based establishments or upset current tax agreements.

The road to 2029

Austria is merely at the beginning of what is likely to be an extensive reform journey.

Coalition members will proceed with talks on betting limits, tax levels, licensing standards, and the general framework of regulatory control. The National Council will have the final say on the legislation’s form and on Austria’s ability to introduce a competitive multi-licence market by 2029.

The key dilemma for legislators will be finding an equilibrium between consumer safety and market competitiveness.

As discussions advance, sceptics caution that if Austria mimics Germany’s approach too faithfully, it may only liberalise its gambling market superficially, resulting in licensed operators being ill-equipped to challenge the illicit market the reforms aim to eradicate.