Austria’s gambling landscape may soon undergo significant changes, with 2025 shaping up to be a pivotal year for the industry. As the country prepares to issue new online casino licenses, discussions are intensifying about ending the long-standing monopoly held by Casinos Austria.
Casinos Austria has been the country’s sole licensed operator for online gambling since 2012, under a 15-year agreement that is set to expire on September 30, 2027. However, with the licensing tender process expected to start this year, there is growing speculation that Austria will transition to a multi-license model, allowing private operators to enter the market legally for the first time.
Industry stakeholders have long criticized Austria’s current monopoly system, arguing that it stifles competition, limits consumer choice, and fails to curb unregulated gambling. According to Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), the moment 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 told iGaming Business.
If Austria is to introduce an open licensing system, he emphasized that preparations must begin in 2025 to ensure a smooth transition.
Political Uncertainty Could Shape Gambling Reform
While industry experts see 2025 as a window for reform, the political situation in Austria remains fluid. The country is in the process of forming a new government, with the Freedom Party (FPÖ), which won the most votes in September 2024, currently negotiating a coalition agreement with the People’s Party (ÖVP).
Whether the FPÖ-ÖVP government will back gambling reform is still uncertain. However, Dr. Arthur Stadler, founding partner of law firm Stadler Völkel, believes that regardless of which parties take power, the need for additional tax revenue may push the government toward 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 explained.
Austria has also been dealing with legal battles involving unlicensed operators, particularly those licensed in Malta but operating in the Austrian market. If the government implements a transparent, competitive licensing system, it could resolve these disputes and establish clearer regulations for all online gambling operators.
Previous Attempts to Reform Gambling Laws
Efforts to modernize Austria’s gambling laws have been proposed before but have repeatedly failed. During 2017-2019, the FPÖ advocated for the end of the monopoly, arguing that Casinos Austria’s exclusivity limited tax revenues and encouraged black market activity. However, resistance from the ÖVP stalled any progress.
More recently, in late 2023, the ÖVP attempted to draft new gambling legislation and introduce an independent gambling authority. The initiative collapsed after opposition from the Green Party, which demanded stricter consumer protection measures.
The situation has led to unlicensed operators gaining significant market share, with Priglinger-Simader estimating that Casinos Austria only controls about 30% of the market. This suggests that many Austrian players are already seeking alternatives outside the regulated framework, reinforcing the argument that the monopoly is ineffective.
Criticism of Austria’s Licensing System
Austria’s current gambling licensing process has long been criticized as biased toward Casinos Austria. In 2012, the government awarded a single online gambling license to the operator, bundling it with lotteries and slot machine rights. Many industry experts believe this process was structured in a way that only Casinos Austria could 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 explained.
Adding to the controversy is the Austrian Ministry of Finance’s 33.3% stake in Casinos Austria, raising concerns about a conflict of interest in how licenses are distributed. Many within the industry are calling for the establishment of an independent regulatory authority to oversee licensing and enforcement in a more transparent and fair manner.
If reform is delayed, legal challenges from operators seeking fair access to the market could arise, potentially complicating the transition further. Stadler estimates that establishing a new regulatory structure could take up to three years, making it essential for the government to act quickly if it wants to have a competitive market in place before 2027.
The Bigger Picture: European Gambling Trends
Austria’s potential shift toward a competitive gambling market aligns with broader trends in European gambling regulation. The regulated European gambling was expected to reach €137 billion in revenue in 2024, with online gambling accounting for 40% (€55 billion) of the total.
Sports betting and lotteries are the fastest-growing online gambling sectors, with sports betting expected to grow at 8.6% annually through 2029. Denmark, which successfully moved from a monopoly to a multi-license model, has demonstrated how competition can increase tax revenue and improve consumer protections.
Despite this growth, Europe continues to grapple with unregulated gambling markets. Estimates suggest that 21% of online gambling activity in Europe occurs outside licensed frameworks, equating to an unregulated market worth approximately €13 billion.
Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), has argued that multi-licensing is the best way to address these issues.
“The evidence from across Europe is clear and compelling: multi-licensing works,” Haijer said. “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 expire in 2027, Austria is at a critical moment in its gambling policy. The country’s monopoly system is one of the last in the EU, alongside Poland, and has faced growing calls for reform from both industry leaders and legal experts.
A transition to a multi-license system could bring Austria in line with other European markets, encouraging competition, transparency, and higher tax revenues. However, the incoming government’s stance on gambling regulation remains unclear, leaving the industry waiting for definitive action.
With key political decisions expected in 2025, the future of Austria’s gambling market hangs in the balance.
Source:
Austria likely to regulate online gambling market this year, say experts , igamingbusiness.com, February 5, 2025