Austria May Regulate Online Gambling Market in 2025, Experts Say
With a new government taking office and a bidding process for online casino licences set to begin, industry experts anticipate that Austria may end its decades-long gambling monopoly and open the market to private operators.
Potential End of the Online Casino Monopoly
According to industry analysts, 2025 could mark the year Austria dismantles its monopoly on online casinos and grants licences to multiple private operators. If this happens, online casino products such as slot machines and table games could become fully licensed in the country for the first time.
This shift may also impact ongoing legal disputes, where players are demanding refunds from operators licensed in Malta.
Licensing Process Set to Begin
The current monopoly holder, Casinos Austria, holds a 15-year licence set to expire on 30 September 2027. Authorities are expected to initiate a bidding process for new licences this year, which experts view as a step towards a more open regulatory framework.
Simon Priglinger-Simader, Vice President of the Austrian Betting and Gaming Association (OVWG), expressed optimism about the potential regulation of online casinos in Austria.
“We are in an interesting period, as this is the first time in over five years that politicians are willing to discuss a reform and move away from the monopoly system,” he said.
“Now is the time – it’s a ‘now or never’ moment for action. If they want to end the monopoly, preparations must begin in 2025.”
Coalition Negotiations Underway
The decision on new gambling regulations will be determined by the next coalition government. Following the collapse of negotiations with the Social Democrats (SPÖ) and the liberal NEOS party, the centre-right Austrian People’s Party (ÖVP) is in talks with the right-wing Freedom Party (FPÖ), which secured the most votes in the 29 September 2024 election.
If negotiations succeed, the two parties could form a government in the coming weeks.
“This is a critical moment in Austrian politics,” said Dr Arthur Stadler, a partner at the Vienna-based law firm Stadler Völkel.
“It seems likely that a centre-right government will take office, but the final coalition remains uncertain. However, what is clear is that any government will have a strong need for revenue, and a broader gambling licensing system could contribute to that.”
Previous Attempts at Gambling Reform
During the previous FPÖ/ÖVP coalition (2017-2019), the Freedom Party advocated for liberalising the online casino market, arguing that the monopoly of Casinos Austria limited consumer choice, hindered the fight against illegal gambling, and reduced potential tax revenues.
At the time, the proposal faced opposition from the ÖVP and was not implemented. However, the ÖVP has recently adopted a more favourable stance towards a regulated online gambling sector. Late last year, the party attempted to introduce new gambling legislation and establish an independent regulatory authority, but the proposal was blocked by their then-coalition partner, the Greens, who demanded stricter player protection measures.
Need for an Independent Regulatory Authority
Austria remains one of the few European countries maintaining a monopoly on online casinos. Industry lobby groups have long advocated for change. In December, Maarten Haijer, Secretary General of the European Gambling and Betting Association (EGBA), argued that Austria should open its market to more operators.
“Experience across Europe clearly shows that a multi-licence system works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenues,” Haijer stated.
In Austria, sports betting is regulated at the state level and is not classified as gambling. However, online casino operators argue that the existing monopoly has contributed to the growth of an unregulated grey market.
Criticism of the Licensing Process
In 2012, Austria’s Ministry of Finance awarded the country’s sole online casino licence to Casinos Austria for a 15-year term. The process has been criticised within the industry as discriminatory.
“The licensing system and allocation process were heavily criticised as highly discriminatory, as three different products (lottery, slot machines, and online casino) were granted in a single package,” Stadler explained.
Additionally, the Ministry of Finance owns a 33.3% stake in Casinos Austria, raising concerns about potential conflicts of interest. As a result, industry representatives are calling for an independent body to oversee the licensing process.
Experts warn that establishing a new regulatory authority and issuing licences could take up to two or three years.
“Now is the time for change,” Stadler said. “It’s time to dismantle the monopoly and implement a broader licensing system.”