Austria's New Coalition Agreement Raises Hopes for Online Gambling Liberalisation

Austria’s political landscape has been on a roller coaster since last year’s October elections, with the country’s political parties scrambling to reach an agreement on forming a coalition government.

After a lengthy and turbulent five-month process, the conservative People’s Party (ÖVP) and the right-wing populist Freedom Party (FPÖ) failed to finalize a deal, leading to an unexpected alliance between the ÖVP, the Social Democrats (SPÖ), and the Liberal Party (NEOS). Their coalition agreement, published on February 27 and sworn in on March 2, holds significant implications for Austria’s gambling industry.

For stakeholders in the gambling sector, the key question remains whether this new coalition will bring a much-needed liberalisation of the online gambling market. While some industry experts remain optimistic, others argue that the coalition agreement mirrors past government positions on gambling, raising doubts about any real change.

The current gambling framework in Austria is highly fragmented. While both online and land-based casinos are governed under a monopoly licence, sports betting is regulated by each of the nine federal states. The country’s gambling monopoly, under which only Win2day (a subsidiary of Austrian Casinos) is permitted to operate online casino products, is set to expire in 2027. As this deadline looms, the future of the market remains uncertain, with many hoping the new coalition will open the door to a more competitive market with multiple licensees.

The coalition agreement, which outlines structural reforms of Austria's gambling sector, promises to "further develop the gambling monopoly" and crack down on illegal operators. However, the term "further development" or "Weiterentwicklung" is vague and can be interpreted in different ways. According to Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), the coalition’s language suggests that gambling reform has been pushed aside for now, with key decisions deferred to a later date.

"From our discussions with policymakers, we know that the issue of online gambling licences had not yet been negotiated at the time the government was formed," he said.

"There are many key decision-makers in the new government who advocate for a modernisation of the online gambling market in line with European standards."

Although two of the coalition parties, the centre-right ÖVP and the liberal NEOS, support gambling reform, the centre-left SPÖ is believed to oppose any liberalisation efforts. As a result, the issue of online gambling reform appears to have been relegated to the “maybe” pile as negotiations for the coalition reached their final stages.

However, there are some indications that the new coalition may be more open to liberalisation than previous governments. The frequent use of the term "Weiterentwicklung" in the coalition pact—appearing around 130 times—could suggest that some issues, including gambling reform, have been temporarily set aside for future discussion.

Furthermore, the coalition has proposed establishing an independent gambling authority to take over the ministry of finance’s role in issuing licenses. This move has been interpreted as a positive sign that Austria may be preparing for a shift toward a multi-licensed gambling market.

OVWG's Priglinger-Simader pointed out that player protection measures mentioned in the coalition pact, such as an operator-independent player ID card and a self-exclusion register, would only make sense in a liberalised market with multiple regulated operators. "These plans imply a market with multiple regulated operators that could participate in any player ID and self-exclusion scheme," he said.

Another noteworthy development is the proposed "debundling" of the various roles held by the ministry of finance. Currently, the ministry serves as both the regulator and the tax collector for the gambling industry and owns a 33.3% stake in the monopoly operator Austrian Casinos. The coalition pact suggests that the ministry’s licensing and oversight roles will be transferred to an "independent supervisory authority" that will adhere to international standards. This change could be a way to place gambling oversight in more neutral hands, particularly as the SPÖ, which has been historically sceptical of gambling, will take control of the ministry of finance.

Despite these promising signs, some experts remain doubtful. Dr. Arthur Stadler, founding partner of the Vienna-based law firm Stadler Völkel, pointed out that the language of the coalition agreement is very similar to that of past governments. "While the liberalisation of online gambling in Austria is long overdue, the coalition agreement reads in many parts very similar to the previous government’s coalition paper," Stadler noted. "Take, for example, the development of the monopoly framework, reinforced by IP blocking and payment blocking – this closely mirrors the approach taken over the past decade under the Grand Coalition of the ÖVP and SPÖ."

For the gambling industry, one certainty has emerged: operators will face higher taxes. The coalition has voted to raise the betting levy from 2% to 5% starting on April 1, 2025—a significant increase that could impact operators’ profitability. "Austria’s betting market was, compared to Germany, a more attractive one, so it remains to be seen how operators will react and whether they pass this additional tax burden on to their customers," Stadler commented. The government expects to raise €50 million from gambling in 2025 and €220 million by 2030. However, the OVWG believes that these ambitious financial targets will only be achievable with market liberalisation, not just tax hikes.

As the current casino licences expire in 2027, the government faces a tight deadline to establish its new gambling authority, issue licences, and avoid potential legal challenges. If the market remains closed or only slightly reformed, the next tender process is expected to be highly competitive and contentious. According to Stadler, operators may form coalitions to meet experience requirements, and if the tender process is deemed biased, legal challenges could delay the process by up to a year or more.

With only a few years left until the licences expire, the clock is ticking for the government to act. "Whatever comes out of this, we will probably see at the latest in September or October," Priglinger-Simader said. "But it’s still an open race for us, I’d say." The next few months will be critical for the future of Austria’s gambling market, as lobbying continues behind the scenes and key decisions on liberalisation loom. 

By fLEXI tEAM