Austria confronts challenges in combating the vending machine underground.
An expertly managed crime ring Rules the illicit gambling scene in Upper Austria. They pocket millions due to illegally positioned gaming machines. The authorities had been monitoring the situation for long, but now seem helpless against the criminals' cunning tactics.
There has been strict legislation governing the installation of gaming machines in Austria since 2012. In the federal state of Upper Austria, only large players like Novomatic with its Admiral Casinos were granted licenses. However, there are numerous illegal gaming machines ubiquitous in pubs, gas stations, and eateries. High-traffic locations can generate earnings of up to €10,000 per month from slot machines. The proprietors of these establishments receive a commission from the slot machines - a profitable deal for the small business entrepreneurs. However, investigators suspect that the major portion of the revenue is controlled by a criminal organization that oversees the acquisition and circulation of such devices.
The Financial Police are now stepping up their efforts. Thousands of machines have been confiscated and destroyed. But the vending machines are rapidly replaced. In certain cases, they are even reinstalled within hours. This suggests that there is a well-organized gang that amasses large quantities of new machines and can quickly dispatch them when necessary. This efficiency is supposedly made viable due to the authorities turning a blind eye.
In Upper Austria, the police were aware of the unlawful gambling, but they told the operators, "Just carry on as you are, as long as you pay an amusement tax."Gerald Sakoparnig, Upper Austrian State Office of Criminal Investigation
The criminals developed their operations to be as sophisticated as legal gambling institutions. However, the FBI can only act once the devices are in use - possession alone isn't a crime. The authorities know the location of the central storage, but they can't act on it unless the devices are in operation.
Cat-and-mouse, a never-ending story
In some instances, the officers were even forced to return the machines to the operators. A recent legal decision by an administrative judge makes the situation difficult for the police. The judge asserts that the Federal Gambling Act breaches EU directives. That resulted in the annulment of some confiscations.
The financial police are struggling to identify individuals running the operation. They might also possess their own gambling halls. However, the web of companies behind them is too complex to untangle, with trails leading to Slovenia, Hungary, the Czech Republic, and Serbia. The gang members aren't even bothered by law enforcement shutting down businesses. One case in Vöcklabruck even required the police to place a 300kg concrete pillar to block access to a premise. However, this strategy was unsuccessful, and it was raised to 500kg. In Wels, an operator had set his machines in concrete, which led the fire brigade to demolish them.
The illicit gambling scene is raking in money without scruples. Weekly reports detail distressed wives who are losing their savings to gambling husbands. The sector seems unconcerned, as even legal offerings aren't able to satisfy the demand. Despite potential high penalties, many are willing to take the risk because their businesses would struggle without the gaming machines. Many operators also question the legality of the gambling laws, unimpressed by Novomatic's quasi-monopoly. They argue that measures to protect players are excessive, and the financial police might face more significant resistance if they attempt to confiscate machines. Legislative reform could potentially be a more effective solution, as it would enable wider availability of licenses, enabling law enforcement to undermine the illegal market. By limiting stakes and playtime, they could improve player protection - a policy the illegal gangs wouldn't enact presently.
The police won't give up
However, the police are determined to carry on with their efforts. They're setting up a specialized unit against gambling syndicates at the Federal Criminal Police Office. This team will try to dismantle mafia structures and gain insights into higher echelons. This might help them identify those orchestrating the illegal operations. Such attempts could be potentially dangerous for the officers, as the gang has already planted irritant gas traps in vending machines to maim the investigators when they open them. Robert Klug from the BKA explains,
"We're dealing with organized criminal entities operating similarly to a company structure: with multiple hierarchical levels, significant profits, and presumed connections to both politics and industry."
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Source: www.onlinecasinosdeutschland.com
