Gambling Reforms in Austria Could Exclude Major Operators

Key Points

• The Austrian government intends to change its longstanding online casino monopoly into a multi-license model where many licensed operators will operate within the market, while maintaining a monopoly in lottery betting.
• Ongoing issues with player disputes in Austria, gambling tax dues, capital and stringent compliance conditions, among other requirements, are needed before licences can be issued to operators.
• Austria is planning on introducing an online gambling taxation rate of 45%, along with several stringent compliance and product requirements that will affect competition in the market.

Whereas the primary issue concerning the Austrian online gambling industry used to be whether or not the monopoly would endure, the main issue nowadays might prove to be whether anybody can afford to enter once the monopoly is finally done away with. According to a draft of reform, Austria might soon lift the monopoly on online casino gaming and permit entry into the market for several licensed operators. What appears promising for the development of gambling services is an extensive regulatory framework filled with numerous legal, fiscal, and operational barriers that may well keep many companies out of the business from the very beginning. The proposal involves much more than putting an end to a monopoly. Instead, it seeks to address the problem of player claims, generate extra government revenue, enhance consumer protection measures, and change the entire gambling regulation system in the country.

A Historic Move Away from Austria’s Online Gambling Monopoly

The biggest gambling reform in recent times will be carried out by Austria, with the focal point being a new draft regulation prepared by Austria’s Ministry of Finance. It aims to move away from the single-licence regime for online casino gaming, allowing multiple operators within a regulated market.

Over the last few years, gambling at online casinos within Austria has been governed by a system managed by the sole license available with Austrian Lotteries using their Win2day platform that runs alongside Casinos Austria. Under the reform process, the gambling monopoly in lotteries will be maintained, but online casinos will be opened up for multiple licences.

It has become an important development amid ongoing developments across Europe, where gambling regulations are no longer based on exclusive market control, but rather focus on directing players towards regulated casinos with enhanced protection measures against gambling harm.

In addition to everything else, timing appears to be very important for the upcoming reform. According to reports, Austria’s opening of the market can happen as soon as October 2027, with financial considerations and the large budget deficit of the country seen as one of the reasons behind it.

The Barrier Nobody Expected: Settle Player Claims Before Entry

Opening a market often attracts new applicants. In Austria’s case, however, the draft proposal introduces a requirement that could reduce the number of operators able to apply.

Before a licence can be granted, operators must satisfy all legally binding civil court judgments issued by Austrian courts in favour of players. Any judgments that emerge during the licensing process must also be settled within the applicable performance period before a concession is awarded.

The requirement arrives while several major European gambling groups, including Evoke, Lottoland and Betway, remain involved in ongoing disputes connected to Austrian player claims cases. Meanwhile, thousands of such cases continue to move through local courts.

Requirements do not stop there. Operators must also ensure that all gambling tax obligations have been fulfilled. Companies can meet this condition by fully disclosing and paying outstanding taxes before expressing interest in a licence application. In addition, applicants must provide complete records of stakes, winnings and bonuses in a format suitable for electronic verification.

As a result, access to the market depends not only on future compliance but also on the resolution of historical liabilities. That creates a higher entry threshold than many operators may have expected when discussions about liberalisation first began.

Financial Requirements Push the Bar Even Higher

Beyond historical liabilities, the draft legislation introduces strict corporate and financial eligibility standards. Applicants must maintain at least €10 million in paid-in capital and operate as corporations with supervisory boards registered within the European Union or European Economic Area. Licences would initially run for five years, while longer renewal periods would become available afterwards. Online concessions would be granted for five years initially and could extend to ten years upon renewal.

At the same time, operators would face licensing fees, compliance obligations and a 45% gambling tax on gross gaming revenue. That level of taxation places Austria among the more heavily taxed regulated online gambling markets in Europe.

Large multinational operators with established compliance systems and substantial financial resources may be able to absorb these costs. Smaller regional operators could find it far more difficult to manage both historical liabilities and the ongoing expense of regulatory compliance.

Some of Europe’s Toughest Consumer Protection Measures

While the proposal opens the market, it also introduces safeguards designed to limit gambling activity. Players under the age of 26 would face deposit limits of €250 per week. Those aged 26 and above would be restricted to monthly deposits of €1,680.

Every player would be required to establish a binding monthly deposit limit. Any request to increase that limit would only take effect after a 72-hour waiting period, creating a cooling-off mechanism intended to reduce impulsive spending decisions.

Betting limits would be capped at €2 per spin or game. Maximum winnings would be reduced, jackpot games would be prohibited entirely, and cooling-off periods following extended gambling sessions would become part of the regulatory framework.

Regulators are attempting to ensure that market liberalisation expands legal choice without encouraging harmful gambling behaviour. Whether players will accept those restrictions remains an open question.

Technology and Oversight Take Centre Stage

Another part of the proposal revolves around supervision and technology.

Regulators are planning on putting up a supervisory system which will have the ability to enforce deposit limits for all licensed providers. Unlike the current system which is provider-based, the new regulation would involve a single system which oversees everything in the licensed gambling market.

The second part of the regulation would involve the implementation of a “safe server system”. In essence, it allows for gaming authorities to get access to transactional data. From the regulators’ side, the new requirement will provide a better way of seeing what’s happening. Operators will be faced with new technological obligations.

Casino Competition Reaches Beyond Online Gambling

The above-mentioned changes in reforming the gambling sector also apply outside the digital realm. In particular, there are plans to introduce competition within Austria’s land-based casino market. According to the reform proposal, up to 12 casino licenses will be issued alongside introducing a casino tax amounting to 30%.

Some of the current licenses are scheduled to be extended. Namely, licenses for such casinos as Casino Salzburg and Casino Wien will be prolonged until December 2028. All the above measures clearly demonstrate that reforming activities cover the whole gambling market of Austria, not just the digital sphere.

Industry Response: Rejoicing and Caution

Although it might seem too restrictive at first sight, many industry representatives see these steps towards market liberalisation.

“Industry hopes are higher than ever,” Simon Priglinger Simader, the President of the ÖVWG trade association, said. Nevertheless, he admits that much work needs to be done before adopting the reform package.

There are certain questions concerning deadlines, the license process and exact regulatory requirements that need to be answered. There are even some predictions suggesting that legal obstacles could postpone founding a new regulatory authority until 2030.

The Bigger Question: Can Austria Attract Enough Operators?

There are multiple factors that Austria’s reform hopes to achieve in one attempt. Firstly, there is an intention to boost market legality, protect players, raise revenue and settle outstanding disputes.

It might be difficult to do everything simultaneously, though.

With taxes, product limitations, regulation requirements, historical responsibility and even technological monitoring becoming the factors of additional expenses, there will be very little incentive for operators to enter the market. However, the establishment of a properly regulated market would enable a sustainable and long-term industry development, provided players find the system trustworthy and companies are willing to make business compromises.

The outcome might depend not on how to open the market, but on how to regulate it.

Expert View: What This Means for the Gambling Industry?

Austria’s proposal represents far more than a licensing reform. It stands as a test case for the next phase of European gambling regulation. Authorities are not pursuing liberalisation in the traditional sense. Instead, they are offering market access in exchange for accountability.

For operators, economic viability becomes a central consideration. Settling player claims, clearing historical tax obligations, funding €10 million in paid-in capital, complying with real-time oversight systems and absorbing a 45% GGR tax creates a cost structure that favours large, well-capitalised international groups. In this environment, scale becomes a competitive advantage rather than simply a growth strategy.

In a broader context across the industry, Austria may set an example for jurisdictions considering stricter consumer protection while avoiding the model of monopoly. The European regulators will observe whether it is possible to enforce strict regulatory frameworks in a competitive licensed jurisdiction.

The biggest potential can be associated with operators who prove their ability to comply with new requirements, conduct themselves in a responsible manner regarding gambling and have the intention of participating in licensed markets in the long term. These kinds of operators can enter a promising market with low competition.

The main danger can be connected with the problem of channelisation in cases when taxes and restrictions make products less profitable than offshore ones and force people to play in casinos beyond jurisdictional control.

In the next few months, stakeholders will probably pay attention to several questions whether requirements regarding the player claims are changed, whether some relaxation will be reached regarding restrictions within consultations, and how many operators want to become a part of the licensed market.

Further updates on regulatory developments will be available in the Regulation Section.