The new tripartite coalition government in Austria, led by Andreas Hanger, Kai Jan Krena, and Karin Doppelbauer, has approved the interim budget for 2025, which includes a significant increase in the Austrian sports betting tax. This move will increase the betting fee from 2% of the betting amount to 5% starting from April 1, instead of the previously planned gradual increase until January 2026.
Tax Increase and Its Impact
The Austrian Sports Betting Association (OSWV) has expressed strong concerns about the rapid implementation of the tax increase, warning that it could have a massive impact on the entire industry. The OSWV points out, "If top sports events, especially popular sports events, have to reduce their existing partnerships without any transition period, then the sports industry itself will be the first to be affected." This could lead to numerous media partnerships ending and small providers facing bankruptcy threats, resulting in nationwide unemployment.
The association urges the federal government to provide "a sufficiently long transition period" for the affected companies to prepare. They believe that the original plan of gradually increasing the tax at the beginning of the year was more realistic, and a few weeks is not enough time to implement.
Dialogue and Player Protection
In addition to requesting a transition period, the OSWV is also seeking dialogue with legislators. The government's plan includes measures to strengthen player protection in the gambling industry, and the association believes that involving licensed industry representatives in the discussions would be beneficial. They suggest holding public hearings, roundtable discussions, or working groups to ensure the success of these measures.
As the OSWV points out, "To ensure that the planned measures can successfully achieve the government's desired goals, it would be best to hold a public hearing, a roundtable discussion, or ideally, a working group that also includes licensed industry representatives."
Budget Background and Future Plans for Austrian Sports Betting
The interim budget was necessary because last fall's national parliamentary elections resulted in the lawmakers not approving a full budget for 2025. The coalition explains that this measure is intended to provide flexibility until the Federal Finance Act of 2025 is finally passed. The corresponding bills from the three coalition parties also received approval from the Greens, aimed at ensuring continued federal budget financing.
The acceleration of the increase in sports betting tax in Austria has posed significant challenges to the industry, and the OSWV advocates for a more gradual approach to address these impacts. As the government moves forward with its budget plans, how these changes will affect Austria's sports betting industry and the broader economic stability remains to be seen.
