Austrian online casino monopoly model set to continue under new gambling authority
The new coalition government intends to create a new gambling authority but will keep a single online casino licence.
Austria.- It had looked like Austria might open its online casino market to competition once the exclusive licence of Casinos Austria’s Win2Day ends in September 2027. The previous government was believed to be preparing to launch a tender this year. But the new coalition government, which took office today, has other plans.
The new three-party coalition government in Austria comprises the centre-right People’s Party (ÖVP), the Social Democrats (SPÖ) and the Liberal Party (NEOS). They have proposed keeping the monopoly model under a single 15-year licence to operate online casinos from 2027.
To avoid further accusations of a conflict of interests due to the Finance Ministry‘s 33.3 per cent stake in Casinos Austria, the government plans to create a new independent gambling authority, which would handle the tender process for both online and land-based casino licences. However, there is little time to establish the body given that licences expire in 2027. The process could also face legal challenges at administrative courts and Constitutional Court.
Casinos Austria won its current exclusive online casino licence in a tender run by the Finance Ministry in 2012. The company also has a monopoly over land-based casinos in Austria and runs lotteries via its Austrian Lotteries subsidiary, which has a distribution network of 5,000 retail outlets. However, industry groups like the EGBA have called for Austria to open its market to competition.
The ÖPV had been more inclined to favour opening the market to competition, but its talks with the right-wing populist Freedom Party (FPÖ) broke down. Under the new coalition agreement, the Finance Ministry will be controlled by the SPÖ.
Other proposals include gradually raising the 2 per cent tax on gambling revenue to 5 per cent. The new government also intends to get tougher on unlicensed operators by using site blocking and payment blocking.
It may also try to replace the current state-by-state regulation of sports betting with centralised licensing. The government says this would ensure uniform player protection standards, but it’s likely that states would oppose the proposal. The government also plans to regulate loot boxes, which could see them regulated as gambling products like in Belgium.
Meanwhile, the Maltese Civil Court has said that it will not enforce judgments by Austrian courts that awarded refunds to players who had gambled on sites that were not licensed in the country. The court sided with Maltese operators, ruling that the judgments went against Maltese policy.
The court ruled that Article 56 in the Treaty on the Functioning of the European Union (TFEU) allows the provision of services across EU states and that Austrian gambling legislation, which retains an online gaming monopoly for Casinos Austria’s Win2Day, is incompatible with the European Union legislation.
