Austria likely to regulate online gambling market this year

As Austria prepares for a seismic shift in its online gambling landscape, stakeholders are eyeing the potential end of a decades-long monopoly as new government action looms. The initiation of the tender for online casino licenses signals a pivotal moment for the industry.

Industry experts are optimistic that 2025 may mark the year when Austria’s online casino market opens up, granting licenses to various private operators for the first time.

This shift would enable licensed online casino products, including slots and table games, to operate legally within the region. It could also bring an end to the ongoing legal disputes faced by operators currently operating under Maltese licenses.

With the current monopoly-holder, Casinos Austria, set to have its 15-year license expire on September 30, 2027, authorities plan to launch the tender process for new licenses this year. Experts believe that this presents an unprecedented opportunity for market liberalization.

In a recent interview, Simon Priglinger-Simader, Vice President of the Austrian Betting and Gaming Association (OVWG), expressed cautious optimism. “For the first time ever, I feel optimistic about the prospects for regulating online gambling in Austria,” he stated. “After years of stagnation, the political climate is finally receptive to discussions about reforming the monopoly system.” He emphasized the urgency, saying, “Now is the time for action; 2025 must be the focal point for transitioning away from the monopoly.”

Government Coalition Talks: A Critical Juncture

The key decision regarding the restructuring of Austria’s gambling framework rests with the incoming coalition government. Following unsuccessful negotiations with the Social Democrats (SPÖ) and the Liberal Party (NEOS), the center-right People’s Party (ÖVP) is currently engaged in discussions with the right-wing populist Freedom Party (FPÖ), the standout winner of the September 29 elections.

If coalition talks succeed, a new government could be established shortly, setting the stage for significant regulatory changes. As Dr. Arthur Stadler, founding partner at the Vienna-based law firm Stadler Völkel, noted, “This is a crucial moment in Austrian politics. A center-right government is likely, but the coalition is not yet confirmed. Regardless, the next government will need to find new revenue sources, and a more expansive gambling licensing regime could provide essential funds for the state.”

Dr. Stadler added, “Creativity and responsibility are essential at this juncture to facilitate a transformation of the national online casino market. Austria can draw inspiration from successful models in other EU countries, such as Denmark.”

Previous Governance: Considerations for Reform

The prior FPÖ/ÖVP coalition from 2017 to 2019 was a strong proponent of liberalizing the online gambling market. They argued that Casinos Austria’s monopoly limited consumer options, hampered efforts to combat the illegal market, and restricted potential tax revenues. However, their proposed reforms faced resistance from the ÖVP and ultimately were not implemented.

Nonetheless, recent signals from the conservatives regarding support for a regulated online market have been more favorable. Late last year, the ÖVP made an effort to draft new gambling legislation, proposing the establishment of an independent regulatory authority in Austria for the first time. Unfortunately, this initiative stalled when their coalition partners, the Green Party, insisted on stringent player protections and regulations.

Momentum for Online Reform: An Unprecedented Opportunity

Austria stands as one of the last jurisdictions in Europe clinging to a monopoly on online gambling—a situation that industry advocates have long expressed the need to change. Maarten Haijer, Secretary General of the European Gambling and Betting Association (EGBA), emphasized, “The data across Europe indicates that multi-licensing is the way forward. It effectively channels gambling activities into a regulated environment, enhances consumer protection, and generates substantial tax revenue.”

While sports betting is regulated at a state level in Austria, online casino products are currently under the constraint of a monopoly, fostering a burgeoning black and grey market. As Priglinger-Simader pointed out, “The monopoly currently holds only a 30% market share, revealing its ineffectiveness in the modern gambling landscape.”

The Need for a Fair Licensing Process

Since its inception, the current licensing process has faced criticism for being biased. In 2012, the finance ministry granted a single online gambling license to Casinos Austria for a 15-year period, an arrangement criticized for being discriminatory. As Dr. Stadler explained, “The licensing and awarding procedures were deemed unfair, as they bundled three distinct products—lotteries, slots, and online casinos—favoring a singular operator capable of meeting the stringent requirements.”

Concerns of conflict of interest have also arisen, given that the finance ministry holds a 33.3% stake in Casinos Austria. As a result, industry stakeholders are advocating for the formation of an independent authority to oversee the award of new licenses.

Stadler noted that the government is under pressure to initiate gambling reforms promptly, as legal challenges could complicate the process, potentially extending it by several years. “This is the moment for change,” he stated. “It’s a time for challenges and transformation, and now is the opportunity to dismantle the monopoly and transition to a broader licensing framework.”