Austria Faces Significant Losses For Leagues
The gambling industry in Austria is currently in a state of flux - a new regulatory body is set to clear up the issues with the previous system while at the same time, drastic restrictions are being debated. Potential changes include a sweeping ban on advertising for betting companies in sports. Both the Austrian Association for Betting and Gambling (OVWG) and sports leagues are pushing back against this proposal, fearing massive financial losses if sponsorships were to be outlawed. What might happen next?
Recent Congress on Sport & Brand
The OVWG urged the government for more clarity regarding the gambling reform in Austria at the end of March. Sports organizations have since joined this chorus of criticism and penned a letter of protest to Sports Minister Werner Kogler. The impetus for this backlash is the proposed ban on advertising for gambling companies in sports events. This would mean significant financial losses for the leagues, as bookmakers are a crucial part of their budgets.
In February, Vienna presented the main tenets of the reform for the first time, sparking the controversy. Alongside the creation of a new gambling authority and the shutdown of unlicensed online casinos, the proposed advertising ban was immediately met with opposition from both the industry and the sports world. The issue was thoroughly discussed at a recent congress in Vienna titled Sport & Brand.
Attendees from both the gambling and sports sectors unanimously agreed that both amateur and professional sports rely on partnerships with bookmakers. Christian Feichtinger, Managing Director of the bet-at-home ICE Hockey League, stated that should the sponsorship ban be enforced, this would cause considerable budgetary losses for Austrian grassroots and elite sport.
Austria's gambling regulations have been subject to criticism on several occasions in the past few months. In October 2020, a study by the universities of Osnabrück and Passau drew some flak when the researchers concluded that the country's gambling law violated EU law. This study was commissioned by the OVWG, who have been pressing the issue of EU-licensed online gambling providers being discriminated against in Austria for years. As part of the ongoing reform, the government remains focused on protecting the state monopoly of Casinos Austria. There are no signs yet of abandoning this outmoded monopoly model.
A Sword of Damocles Hanging Over the Industry
Claus Retschitzegger, President of the OVWG, is concerned that the planned reformation is not favourable to the gambling industry - a sword of Damocles hangs over the sector. Online gambling now accounts for more than half of annual revenues. If severe restrictions are imposed, betting providers will have less sponsorship money available. Conversely, sport and clubs would also suffer. Therefore, future moves should be weighed carefully, advises Retschitzegger.
While the OVWG supports the long-overdue reform in Austria, it believes the perspective and regulatory tools to be lacking. A modern, player-friendly license system should be implemented, creating a win-win situation for all parties involved. There are successful models to follow, such as those in Denmark and the UK.
In terms of licensing, Austria is lagging behind in Europe. The government's response has been largely cautious. The hope is that there will be some leniency and open dialogue. However, the new law stipulates that politicians and gambling providers cannot communicate directly. There's a strong need for consensus and constructive dialogue in order to address the challenges associated with digital gambling.
Lack of Communication Between Industry and Politicians
The OVWG President Retschitzegger sharply criticized the lack of dialogue between the industry and politicians: despite being a taxpayer and employer, the OVWG was not included in the current discussions. The latest plans were only made known through the media. The proposed changes to the Gambling Act would significantly impact OVWG member companies and popular sports. Within the sports sector alone, there would be a potential loss of several hundred million euros.
Together with Norway and Finland, Austria is one of the last countries in Europe to maintain a gambling monopoly. This situation has been condemned for years by industry associations such as the OVWG and the EGBA. Most recently, Raffaela Zillner, Secretary General of the OVWG, pointed out in an interview with the Kronen Zeitung in May that the regulations do not comply with EU standards.
If the amendment were to pass in its current form, there would only be one online gambling provider left in Austria: the state monopoly of Casinos Austria, which operates an online casino via its win2day platform. All other providers licensed in the EU would be considered the same as international companies. This would impact Austrian providers who pay taxes and generate employment in the country, dealing a blow to player protection. Thus, calls for the monopoly to be scrapped in favour of a modern, EU-compliant licensing system are growing louder.
Read also:
- The 15-year-old murderer admits to fatally shooting Francesco, who was 14.
- Schalke's pressure has affected Terodde.
- Columbia University Faces Possible Expulsion Following Demonstrations
- Football turmoil in Munich: Last-minute penalty stuns Bayern
Source: www.onlinecasinosdeutschland.com
