Austria plans online gambling crackdown

The Ministry of Finance is expected to present an amendment to the Gambling Act with a focus on online gambling.

Austria.- The Federal Ministry of Finance (BMF) is expected to produce an amendment to the Gambling Act with a focus on online gambling. The draft that’s expected to be presented in the coming days will further establish the existing gambling monopoly by preventing suppliers from entering the market.

Despite the fact that Casinos Austria Group hold a monopoly over online casino in the country, it is estimated that approximately 60 per cent of the share of the market is held by unlicensed providers. “There is only one license for the online area; but the demand is much larger. Almost 60 per cent of online gambling takes place in the gray market in Austria,” said Andreas Kreutzer, from Kreutzer Fischer & Partner, which carried out a recent study on gambling and sports betting on the internet.

The Austrian Association for Betting and Gambling (OVWG) has expressed its opposition to the measure as it believes that serious providers must not be excluded from the market in the future. The OVWG said that a new regulation with a licensing procedure is urgently needed in Austria, but that 50 million and more than 1,000 qualified jobs are at risk with the planned revision. Game and betting stakes have increased by around 10 per cent in the last two years, while the online market increased 25 per cent in 2016.

While the BMF argues in its draft that player protection is a top priority, the OVWG said that the argument to justify the market exclusion of unlicensed reputable providers doesn’t apply because some already have valid EU licences, therefore they meet high standards in terms of player protection. Claus Retschitzegger, President of the OVWG, said: “We also agree with the Federal Ministry of Finance on this topic. After all, nobody can have any interest in the fact that gambling takes place in digital back rooms.”

“If the law were to come into force in the recently submitted and then withdrawn version, this would have far-reaching consequences: it would force reputable suppliers out of the market. We are talking about 1,000 highly qualified jobs and 50 million euros of sponsorship and marketing expenses each year, which are endangered to the highest degree, “says Retschitzegger