Why Change Is Finally on the Table
Reform in Austria’s iGaming sector has moved slowly for years, but recent developments suggest the market may now be entering a new phase. After months of speculation, a draft gambling law from the Finance Ministry surfaced on Wednesday, indicating that the country’s decades-old online gambling monopoly could soon be dismantled.
The current online gambling licence, held by Austrian Lotteries through its Win2Day brand, is due to expire in 2027. A fresh tender process is expected to follow, and this time the market may be opened to more than one operator rather than a single concession holder.
In explaining the proposed shift, the Finance Ministry said the monopoly model had become difficult to enforce in the digital era, especially in cross-border online gambling. According to the draft, the reform is intended to create a more competitive legal online offering while improving channelisation into the regulated market and raising player protection standards.
Player safeguards are not the only driver behind the change. With Austria facing growing pressure to reduce its budget deficit, the overhaul could also generate significant additional tax revenue.
Who Would Be Eligible for a Licence?
Under the draft proposal, gambling companies headquartered in the EU, EEA or Austria would be able to apply, including operators already licensed in other jurisdictions. That would potentially cover so-called grey-market firms currently active in Austria under licences from places such as Malta or Gibraltar.
There is, however, a major condition. Operators that have already served the Austrian market would need to demonstrate that they are fit and proper by settling all outstanding back taxes and resolving player-claim rulings. In effect, entry into the legal market would require clearing historical liabilities first.
Online gaming licences would not be capped, although the lottery concession would remain separate and continue as a monopoly. The lottery and online casino concessions, previously linked together, would be uncoupled under the new framework. Competition for the standalone lottery concession is expected to be intense in the years ahead.
What Would It Cost to Enter the Market?
Access to Austria’s regulated iGaming sector would not be inexpensive.
Speaking to Der Standard, players’ lawyer Oliver Peschel said player-claim payouts alone could amount to several hundred million euros, with thousands of consumers still awaiting money they are legally owed.
Applicants would also need to address backdated tax liabilities. The draft states that full disclosure and settlement of any non-statute-barred tax debts would be a basic prerequisite for licence approval. Even after those obligations are met, operators would face one of Europe’s heavier tax burdens. Following tax increases in 2025, online gambling would be taxed at 45% of gross gaming revenue.
According to Vienna-based gambling lawyer Arthur Stadler, licensees would also be required to maintain minimum share capital of €10 million. That threshold could encourage consolidation and limit participation to larger operators able to absorb the financial burden.
How Would Player Protection Be Strengthened?
Social responsibility is set to play a central role in the reform. The draft outlines a broad online player protection framework, extending many safeguards already used in Austria’s land-based sector into the digital market.
Key measures include:
- A central self-exclusion register linked to Austrian digital ID systems, with registration available through the regulator;
- Weekly deposit limits of €250 for players under 26 and €1,680 for those aged 26 and over, with the higher cap removable if sufficient liquidity can be demonstrated;
- Maximum stakes of €2 per spin and maximum winnings of €2,000;
- A ban on jackpots;
- Restrictions on speed of play and mandatory 15-minute cooling-off periods after every 90 minutes of play;
- Ongoing monitoring of player behaviour and addiction risk.
Taken together, these rules would make Austria one of Europe’s more tightly controlled gambling markets, even as licensing itself becomes more open.
How Would Regulators Tackle the Black Market?
Channelisation remains one of the central policy challenges. According to a statement reported by Der Standard, the Finance Ministry hopes reforms could raise channelisation from 45% to 80%, although industry figures believe the true rate is lower.
The government plans to pursue this goal through market opening and a broader enforcement strategy, including ISP blocking, payment blocking, blacklists, test purchases and expanded powers for the regulator.
Legal expert Stadler has warned that the current framework risks creating a commercially weak business model. If operators find the licensed regime unviable, he argues, they may struggle to compete with illegal offerings, undermining the government’s channelisation targets.
“The real danger is that the business model simply does not pencil out for operators, and that the industry does not embrace the new licences at all,” he said. “The macroeconomic consequence of that would be that the channelling rate the legislator is aiming for is never achieved.”
What About Land-Based Gaming?
While land-based betting is regulated at state level in Austria, land-based casinos remain a monopoly structure. Twelve casinos are currently divided into two packages: a city package and a country package, each covering six venues.
Casinos Austria, which owns Austrian Lotteries and holds the sole online casino concession, is also the exclusive licence holder for both land-based packages. That arrangement could change in the coming years.
The draft suggests that a maximum of twelve concessions could be granted in total. These may still be grouped into packages, but only where such grouping can be objectively justified. In practice, that could allow up to 12 separate operators and create opportunities for smaller firms to run one or two venues.
Whether that outcome materialises remains uncertain. The government may retain the existing dual-package model, though it would need to justify doing so. With the city package due to expire in 2027, more clarity is expected next year.
In the meantime, Austria’s land-based sector faces additional restrictions, including fewer gaming machines, the eventual phaseout of video lottery terminals and further player protection measures aimed at reducing gambling-related harm.
Will There Be an Independent Gambling Authority?
An independent gambling authority has long been discussed, but the Finance Ministry appears to be tempering expectations over timing. The draft states that such a body should be established no later than 2030, while the ministry itself would remain in charge in the interim.
That means new licences could initially be awarded by the Social Democrat-led Finance Ministry, with oversight potentially shifting to an independent authority later.
The change would mark an important step for a market where critics have repeatedly questioned the close ties between the state, the Finance Ministry and incumbent operators such as Casinos Austria.
When Could the Market Actually Open?
The timeline remains unclear. With both the online gaming licence and the urban casino package due to expire next year, pressure is building to begin the tender process.
The draft also includes provisions for possible delays. It warns that ending existing licences without legal alternatives could create a regulatory vacuum and push players toward illegal operators.
To avoid that outcome, current licences could be extended on a transitional basis. The draft says any extension should be as short as possible and serve only as a bridge until a new licensing procedure is completed, while giving applicants enough time to prepare.
According to Stadler, such extensions are legally possible but could revive criticism linked to past European Court of Justice rulings on opaque licensing practices. He suggests policymakers may already be working on the assumption that a two-year extension will be needed, which would point to a new licensing regime beginning around 2029.
How Is the Industry Responding?
Industry reaction has been cautiously positive so far, though concerns remain that excessive regulation could continue pushing players toward unlicensed operators.
Simon Priglinger-Simader, president of Austrian betting and gaming association ÖVWG, said it was encouraging that the government plans to introduce an open online licensing system based on qualitative criteria. He added that product restrictions would need to be balanced to ensure players accept the future licensed market.
Casinos Austria did not respond to a request for comment. In Der Standard, however, the company criticised the opening of the licensing scheme as a “reward for lawbreakers.” Spokesperson Patrick Minar argued that operators could act illegally until the final moment, settle legal proceedings and taxes, and then apply for a licence.
What Should Operators Watch Next?
The months ahead are likely to be active. The draft will now form the basis for negotiations among Austria’s three governing parties—the Social Democrats, liberal NEOS and centre-right People’s Party—alongside a public consultation beginning in June. Major revisions are not widely expected, though smaller amendments remain possible.
The government will need to move quickly if it hopes to pass the law before the summer recess. Stadler notes that the parliamentary process has not yet been formally initiated.
Austria would also need to notify the European Commission, triggering a three-month standstill period, and could face legal challenges.
As 2027 approaches and key licences near expiry, more detail should emerge on the tender process and, crucially, when Austria’s multi-licence market will finally open for business.