Austria is getting closer to updating its gambling laws after many years of delay. A draft law is expected soon and could change how online gambling and lottery services work in the country. The reform is becoming urgent because licences for lotteries, online gambling and six casinos will expire in 2027. Officials are now working on a new system that might open the market to more competition.

Earlier attempts to update the rules failed because government partners could not agree on how to protect players. That disagreement slowed everything down for years. With the new proposal moving again, Austria may soon follow other European countries that already have modern and competitive gambling markets.

Draft Law and Approval Process

The plan is still being discussed in government, and some key issues are not settled yet. One major question is whether Austria will limit the number of licences or open the market to any qualified operator. After budget and finance officials review the draft law, the Council of Ministers must approve it. If everything goes smoothly, the government will then inform Brussels, and the new rules could start as early as summer 2026.

According to the Austria Press Agency, the main focus is online gambling. Right now, Austrian Lotteries is the only company allowed to run lotteries and online games. The new law is expected to end this monopoly and create a clearer and more competitive system for operators.

Grey Market Pressure and Legal Challenges

One major reason for reform is the large grey market that exists in Austria. Many international gambling operators target Austrian players even though they are not licensed in the country. Some of these companies hold licences from Malta or Gibraltar and pay taxes elsewhere, while others operate without any licence and pay nothing at all.

This situation has led to several court cases. In many of these cases, Austrian players have successfully demanded repayment of their past gambling losses because the operators were considered to be working outside Austria’s legal system. Lawmakers say this is another sign that the country needs a clear and updated regulatory structure.

Player Protection and Technical Controls

Protecting players is a main goal of the reform. Officials are considering a central database that is similar to Germany’s, which would block people who self exclude or show risky gambling habits from using licensed gambling services. However, this system would not affect international operators that do not hold Austrian licences.

Authorities are also looking at technical tools like IP blocking of unlicensed websites and payment blocking. Payment blocking would stop bank transfers to blacklisted gambling companies through Austrian accounts. Experts think this option could work better, but it still needs more technical and legal preparation and cooperation from banks.