Austria to Extend Gambling Monopoly Until 2042
The Most Important Points at a Glance
Austria is maintaining its monopoly on online gambling. The government plans to grant a new, exclusive 15-year license after the current license expires in 2027. A new independent gambling authority will take over regulation. Additionally, stricter measures against unlicensed operators and a possible tax increase are being considered.
Austria Sticks to Gambling Monopoly
The Austrian government has decided against opening the market for online casinos. Instead of multiple operators, there will continue to be only a single license. This decision contradicts earlier expectations that the market would be opened to multiple providers.
Independent Gambling Authority Planned
To avoid conflicts of interest, an independent gambling authority is to be established. This authority would be responsible for issuing licenses for both online and land-based casinos. Currently, oversight lies with the Ministry of Finance, which itself holds a 33.3% stake in Casinos Austria. However, implementing this reform could face legal hurdles.
Casinos Austria Retains Control
Currently, Casinos Austria, through its platform Win2Day, holds the country’s only online casino license. The company also operates land-based casinos and the lottery business with around 5,000 retail outlets.
Criticism of the Monopoly Position
Industry associations such as the European Gaming and Betting Association (EGBA) have long called for market liberalization. They argue that a monopoly stifles innovation and limits player choice.
Stricter Measures Against Unlicensed Operators
The government plans to further restrict access to unlicensed online casinos. Measures to block websites and payments will be intensified.
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Potential Gambling Tax Increase
Additionally, an increase in the gambling tax is under discussion. Levies could rise from the current 2% to as much as 5%.
Centralized Regulation for Sports Betting Planned
A national-level unification of sports betting regulations is also being considered. However, resistance from individual federal states could delay or prevent this reform.
Legal Challenges Due to EU Law
A court in Malta recently issued a ruling that challenges Austria’s gambling monopoly. It refused to enforce Austrian rulings requiring refunds to players who had gambled on unlicensed sites. The court argued that Austria’s restrictions violate EU laws on the freedom to provide services.
Our Assessment
The decision to maintain the monopoly could prove problematic in the long run. While the government focuses on control and player protection, critics argue that opening the market would foster competition and innovation. The planned independent gambling authority could be a step forward, but its implementation remains uncertain. Stricter measures against unlicensed operators and the potential tax increase will also impact the industry. Additionally, legal challenges at the EU level could lead to further adjustments.
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