Austria’s newly formed coalition government has confirmed that the country’s gambling market will continue operating under its existing monopoly framework. The agreement, reached between the People’s Party (ÖVP), the Social Democrats (SPÖ), and the Liberal Party (NEOS), was finalized on March 2 and maintains a single-license model for online gambling. However, the industry remains watchful, as the agreement hints at potential regulatory changes in the coming years.
One-License System Extended Despite Calls for Reform
The Austrian government plans to issue a single online casino license for a new 15-year period when the current permit—held by Austrian Lotteries—expires in 2027. Austrian Lotteries operates the Win2Day platform and, alongside Casinos Austria, maintains control over both online and land-based gambling under the nation’s monopoly model.
Industry stakeholders have long criticized this system, citing concerns over a lack of competition and potential conflicts of interest. The Austrian finance ministry, which oversees gambling taxation and license allocation, also holds a 33.3% stake in Casinos Austria and Austrian Lotteries. This dual role has drawn scrutiny, with critics arguing it creates an unfair advantage for the monopoly operator.
The Austrian Betting and Gaming Association (OVWG) remains hopeful that the language in the coalition agreement—specifically referencing the “further development” of the gambling monopoly—leaves room for future reforms. Simon Priglinger-Simader, vice president of the OVWG, noted that discussions with policymakers suggest online gambling licenses had not yet been fully negotiated when the coalition was formed. He added that several key government figures support modernizing Austria’s online gambling framework in line with broader European standards.
Tougher Enforcement Against Unlicensed Operators
In addition to preserving the monopoly, the coalition agreement emphasizes stricter measures against unlicensed gambling providers. The government has committed to ramping up enforcement through increased use of internet blocking, payment blocking, and other regulatory tools to curb unauthorized operators targeting Austrian players.
This crackdown reflects concerns about the growing presence of offshore gambling platforms. Austria’s regulatory approach follows a pattern seen in other European markets, where governments seek to strengthen enforcement mechanisms to maintain control over their gambling industries.
Independent Gambling Authority to Oversee Market Regulation
To address criticism of the finance ministry’s involvement in both taxation and licensing, the coalition has proposed establishing an independent gambling authority. This body would be responsible for overseeing market regulations, issuing future licenses, and enforcing compliance measures. The move is intended to align Austria with international regulatory standards and mitigate concerns about conflicts of interest.
However, no clear timeline has been set for creating the new authority. Given the 2027 expiration of current licenses, industry experts warn that legal challenges and administrative delays could complicate the implementation process. Regulatory proceedings related to the new online casino license could face scrutiny in both administrative courts and Austria’s Constitutional Court, further extending the timeline for potential market adjustments.
Sports Betting Tax and Loot Box Regulations
Beyond casino licensing, the coalition’s agreement outlines plans to increase gambling-related taxes. Austria’s current betting tax of 2% is set to rise gradually, reaching 5% in the coming years—a move that aligns with neighboring Germany’s taxation levels. Some reports suggest that legislation to implement the first stage of this tax hike could be introduced in parliament imminently.
Additionally, the coalition aims to harmonize sports betting regulations across Austria, addressing the current fragmentation where licensing is managed at the state level. While the government has committed to “reviewing” the system, implementing uniform national standards would require constitutional amendments and approval from Austria’s federal states, making significant changes unlikely in the short term.
The coalition also plans to re-regulate loot boxes in video games, potentially imposing stricter gambling-style oversight on the practice. This could result in enhanced anti-money laundering (AML) measures and more rigorous protections for minors.
Future Outlook
While Austria’s new government has reaffirmed its commitment to the current gambling monopoly, the introduction of an independent gambling authority signals an effort to address longstanding industry concerns. The proposed regulatory shift, combined with increased enforcement against unlicensed operators and higher taxes, suggests that the gambling landscape in Austria will continue evolving in the coming years.
However, key questions remain unanswered, particularly regarding how the new regulatory body will function and whether the government will ultimately move toward a more open online gambling market. For now, the industry will be watching closely as Austria navigates its next phase of gambling legislation.
Source:
Regierungsprogramm 2025 [pdf], Die Volkspartei, March 2, 2025.