Austria to Maintain Online Casino Monopoly

Austria’s new government has confirmed it will maintain its controversial online casino monopoly, despite previous plans for market liberalization.

For years, industry leaders and the European Gaming and Betting Association (EGBA) have pushed for Austria to introduce competitive licensing for online casinos.

However, the newly formed coalition government has opted to retain a single licence model, granting Casinos Austria exclusive control of the online market.

While the decision ensures regulatory continuity, it also raises questions about fairness, market growth, and alignment with EU competition laws.

Austria to Maintain Online Casino Monopoly Under New Gambling Authority

Key Points:

1. Austria’s Online Casino Monopoly Extended Until 2042

   • Casinos Austria’s exclusive licence for Win2Day will not be opened to competition when it expires in September 2027.
   • Instead, a new 15-year monopoly licence will be issued, maintaining state-backed dominance over the online casino sector.

2. New Gambling Authority to Oversee Licensing and Market Regulation

   • A new independent gambling authority will be created to handle licensing, regulation, and enforcement.
   • The Finance Ministry will no longer oversee gambling operations, reducing conflicts of interest in policy decisions.

3. Government to Strengthen Enforcement Against Unlicensed Operators

   • The coalition plans to increase gambling revenue taxes from 2% to 5% over time.
   • Payment blocking and website bans will be introduced to crack down on unlicensed international operators.

Austria’s Online Gambling Market: Monopoly vs. Competition

A Shift Away from Market Liberalization

For months, speculation had grown that Austria would open its online casino market when Casinos Austria’s monopoly licence expired in 2027.

Industry groups, including the EGBA and major private operators, had called for a competitive licensing system, similar to those in Sweden and Denmark.

However, Austria’s new three-party coalition government—made up of the centre-right People’s Party (ÖVP), the Social Democrats (SPÖ), and the Liberal Party (NEOS)—has chosen to maintain the monopoly model instead.

The key reasons for this decision include:

• Regulatory control: The government argues that a single-licence model ensures better oversight and player protection.
• State revenue protection: Casinos Austria’s monopoly generates significant tax revenues, which the government wants to safeguard.
• Avoiding political conflict: The Finance Ministry, now controlled by the SPÖ, has long favored state-backed gambling monopolies.

New Gambling Authority to Handle Licensing

One of the major changes will be the creation of an independent gambling authority, responsible for:

• Issuing and managing licences for online and land-based casinos.
• Overseeing player protection policies and responsible gambling measures.
• Strengthening enforcement against unlicensed operators targeting Austrian players.

This move is designed to remove regulatory conflicts of interest, as the Finance Ministry previously both regulated and held a 33.3% stake in Casinos Austria.

However, critics argue that establishing a new regulatory body before 2027 will be challenging, with potential legal challenges from private operators.

Stronger Enforcement Against Unlicensed Operators

Tax Increases and Payment Blocking

The government has pledged to raise gambling revenue taxes, with the current 2% rate set to increase to 5%.

Additionally, officials will target unlicensed international operators through:

• Website blocking: Preventing access to gambling platforms without an Austrian licence.
• Payment restrictions: Stopping financial transactions between Austrian players and offshore casinos.

The government also intends to centralize sports betting regulation, which is currently handled at the state level. However, this move is likely to face opposition from individual Austrian states, which rely on regional sports betting revenue.

Legal Implications: EU Challenges to Austria’s Gambling Laws

Maltese Court Blocks Austrian Rulings on Gambling Refunds

Austria’s monopoly model has already faced legal challenges from the European Union (EU).

In a recent ruling, the Maltese Civil Court refused to enforce Austrian court decisions that ordered refunds to players who had gambled on unlicensed sites.

The Maltese court ruled that Austria’s monopoly violates EU free trade laws, particularly Article 56 of the Treaty on the Functioning of the European Union (TFEU), which guarantees cross-border service provision.

This decision suggests that Austria’s continued monopoly could face legal scrutiny from the European Commission, potentially forcing regulatory reforms in the future.

A Missed Opportunity for Market Reform

Austria’s decision to maintain a single online casino licence represents a major setback for industry advocates pushing for market liberalization.

• The government has opted to extend Casinos Austria’s monopoly for 15 years, despite earlier plans for a competitive licensing model.
• A new gambling authority will oversee regulation, removing the Finance Ministry’s direct role in gambling operations.
• Tougher enforcement against unlicensed operators will include higher taxes, payment blocking, and website bans.

While Austria argues that this model ensures consumer protection and tax stability, critics believe it stifles competition, limits player choice, and may violate EU free trade laws.

With legal challenges already emerging in Maltese courts and the European Commission, Austria’s gambling monopoly may face increased pressure for reform in the coming years.