As the new government is about to take office and the new online casino license tender begins, stakeholders in Austria anticipate the end of the country's decades-long gambling monopoly and the opening of the online market.
According to industry stakeholders, 2025 could be the year Austria ends its online casino monopoly and issues licenses to multiple private operators.
This means that online casino products such as slot machines and table games may be fully licensed in the region for the first time in the coming years.
It could also prevent current players from claiming legal disputes, which have been plaguing operators active in the market under a Maltese license.
The current monopolist, Casinos Austria, has a 15-year license that will expire on September 30, 2027, and authorities will start the tender process for new licenses this year. Experts say this marks a window of opportunity for the opening of the online gambling market.
Discussing the current prospects, Simon Priglinger-Simader, vice chairman of the Austrian Betting and Gaming Association (OVWG), told iGB that he is "optimistic for the first time ever" that Austria can regulate online gambling.
"We are currently in a very interesting period because this is the first time in over five years that politicians have openly talked to us and considered reforms to break away from the monopoly system," he explained.
"Now is the time to act, now or never. If they want to break away from the monopoly, they need to start getting everything ready by 2025."
Coalition negotiations are underway
The decision to introduce a new gambling framework will depend on Austria's new coalition government.
After negotiations with the Social Democratic Party (SPÖ) and the NEOS broke down, the center-right People's Party (ÖVP) is currently discussing forming a coalition government with the right-wing populist Freedom Party (FPÖ), which won the most votes in the elections on September 29 last year.
If negotiations are successful, the two parties may form a new government in the coming weeks.
Dr. Arthur Stadler, founding partner of the Vienna law firm Stadler Völkel, said: "This is a very critical moment in Austrian politics."
"Austria seems about to form a center-right government. However, it is still uncertain whether this coalition or any other will govern Austria. However, it is clear that any Austrian government urgently needs funds to cover budget shortfalls—a broader [gambling] licensing system could bring more revenue to the country.
"Now is the time to be creative and responsible, allowing the national online casino market to undergo such a transformation," Stadler added. "Other EU countries like Denmark can serve as a model."
The previous coalition government considered re-regulating gambling
In the previous FPÖ/ÖVP coalition that governed from 2017 to 2019, the Freedom Party was a staunch advocate for opening up the online gambling market.
They pushed for reforms, arguing that the monopoly of Casinos Austria limited consumer choice, increased the difficulty of combating the illegal market, and suppressed potential tax revenue. However, their proposals were opposed by the Austrian People's Party and were never implemented.
Nevertheless, conservatives have shown a more positive attitude towards the regulated online market in recent months.
At the end of last year, the Austrian People's Party made its first attempt to draft new gambling legislation and establish an independent regulatory authority.
However, the bill ultimately failed due to the Green Party coalition partner's insistence on strict player protection and regulation.
The "time has come" for online reform
Austria is one of the few jurisdictions in Europe with a monopoly on online gambling, and industry lobbyists have been eager for change.
Maarten Haije, chairman and secretary-general of the European Gaming and Betting Association (EGBA), called for Austria to liberalize online gambling in December.
In a blog post, Haijer stated: "The evidence from across Europe is clear and compelling: a multi-license system works. It brings gaming activities into a regulated market, protects consumers, and generates significant tax revenue."
Unlike casino products, sports betting in Austria is not considered a gambling product and is regulated at the state level rather than the federal level.
However, in online casinos, there are signs that the monopoly has fostered the rise of a dominant black and gray market.
Priglinger-Simader noted: "We have a 30% market share in Austria's monopoly market, which indicates that this monopoly is no longer working."
The current tender process is "highly discriminatory"
As early as 2012, the Ministry of Finance awarded its only online gaming license to Casinos Austria, valid for 15 years. This process was related to the tender for lottery and slot machine licenses, but industry stakeholders criticized the process as biased.
Stadler explained: "The licensing system and the granting process have been criticized as highly discriminatory because the three products (lottery, slot machines, online casinos) were bundled and awarded."
"This package was tailor-made for one operator—the only operator in Austria that could meet the multi-year experience requirements for all three products and ultimately make such an application."
Since the Ministry of Finance also holds a 33.3% stake in Casinos Austria, there have also been accusations of a conflict of interest.
Therefore, the industry is pushing for the establishment of an independent agency to issue new licenses to operators.
Stadler said this puts pressure on the government to start gambling reforms as soon as possible, while also potentially facing legal challenges.
This could mean that the entire process of setting up a new agency and issuing licenses could take two to three years.
"Now is the time," Stadler said. "This year is the Year of the Snake, a year full of challenges and changes, and the situation in Austria may finally change.
"Now is the time to abolish the monopoly and move towards a broader licensing system."
