As discussions on the modernization of gambling regulation gain momentum, Austria is at a pivotal moment.
Despite 21 EU member states adopting a multi-license framework for online casino games, Austria remains one of the only two countries (the other being Poland) that still maintains a monopoly system.
This model is considered to have significant flaws, including insufficient consumer protection, limited regulatory oversight, and a loss of potential tax revenue.
The European Gaming and Betting Association (EGBA) has highlighted the risks associated with Austria's current monopoly system, noting that thousands of Austrian players are resorting to unregulated offshore gambling sites. These sites lack mandatory safeguards and consumer protection measures, putting players at a disadvantage and outside national supervision.
Therefore, EGBA sees the ongoing government negotiations between Chancellor Nehammer, Chairman Babler, and Chairwoman Meinl-Reisinger as an opportunity to modernize Austria's online casino regulatory approach by introducing a competitive multi-license system.
Worth noting: Countries like Denmark have provided a successful blueprint; since adopting a multi-license model in 2012, by 2023, the regulated online gambling channelization rate in Denmark has risen from 72% to 90%
Finland has recently committed to similar reforms, planning to end the monopoly and open the market by 2026.
According to EGBA, adopting such a framework could bring Austria more than 1 billion euros ($1.04 billion) in additional tax revenue by 2030.
EGBA Secretary-General Maarten Haijer commented on the benefits of transitioning to this new system, stating: "Evidence from across Europe is clear and compelling: a multi-license system works. It brings gambling activities into a regulated market, protects consumers, and generates significant tax revenue.
"As government negotiations proceed, Austria has an excellent opportunity to modernize its online casino regulatory approach and benefit from other proven regulatory methods elsewhere. Now is the time to act."
