Austria’s New Government to Maintain Online Casino Monopoly and Establish Gambling Authority

Austria’s new coalition government has announced plans to establish an independent gambling authority while maintaining a monopoly model for online casinos, granting a single 15-year licence from 2027. This decision puts an end to speculation that Austria might open its online casino market to competition once Casinos Austria’s exclusive licence for Win2Day expires in September 2027. The previous administration had been expected to initiate a tender process this year, but the new government has taken a different approach.

The three-party coalition, consisting of the centre-right People’s Party (ÖVP), the Social Democrats (SPÖ), and the Liberal Party (NEOS), has agreed to retain a single licence system for online casinos. To address concerns over conflicts of interest, given that the Finance Ministry holds a 33.3 per cent stake in Casinos Austria, the government intends to create a new independent gambling authority. This body will be responsible for managing the tender process for both online and land-based casino licences. However, with licences set to expire in 2027, there is limited time to establish the authority, and the process may encounter legal obstacles in administrative courts and the Constitutional Court.

Casinos Austria was awarded its current exclusive online casino licence through a tender conducted by the Finance Ministry in 2012. The company also holds a monopoly over land-based casinos in Austria and operates lotteries via its subsidiary, Austrian Lotteries, which runs a retail distribution network of 5,000 outlets. However, industry organizations, including the European Gaming and Betting Association (EGBA), have urged Austria to open its market to competition.

While the ÖVP had previously been more open to allowing competition in the gambling sector, its negotiations with the right-wing populist Freedom Party (FPÖ) ultimately failed. Under the newly formed coalition, the SPÖ will oversee the Finance Ministry, which is responsible for gambling regulation.

In addition to maintaining the monopoly system, the government has proposed gradually increasing the gambling revenue tax from 2 per cent to 5 per cent. It also plans to intensify efforts against unlicensed operators by implementing site-blocking and payment-blocking measures.

Another significant policy proposal includes the potential centralization of sports betting regulation, replacing the current state-by-state licensing system. The government argues that a unified regulatory framework would enhance player protection standards, although individual states are expected to resist this initiative. Additionally, the coalition intends to introduce regulations for loot boxes, potentially classifying them as gambling products, similar to the approach taken in Belgium.

Meanwhile, in a separate legal development, the Maltese Civil Court has ruled that it will not enforce Austrian court decisions ordering refunds to players who had gambled on websites that were not licensed in Austria. The court sided with Maltese operators, concluding that such rulings conflicted with Maltese policy. It determined that Article 56 of the Treaty on the Functioning of the European Union (TFEU) permits the free provision of services across EU member states. The court also found that Austria’s gambling regulations, which uphold a monopoly for Casinos Austria’s Win2Day, are incompatible with European Union law.

By fLEXI tEAM