Austrian Government's Finance Department Plans to Release New Gambling Authorizations Commencing 2027: What Legislation Changes are Anticipated?
Austrian Gambling Market: Ministry of Finance Begins Licensing Process for Casinos Austria Until 2027
Owing to the 45-month deadline, the Austrian Ministry of Finance has commenced the licensing process for gambling licenses, starting from October 2027, as detailed in the Austrian newspaper, Die Presse.
The licensing procedure will adhere to the old regulations, permitting only one license for lotteries, another for online gambling, and 12 for physical casinos. Currently, these licenses are managed by Casinos Austria, operating through the Austrian Lotteries GmbH.
In theory, other companies might apply for these licenses. However, as demonstrated in Switzerland, where gambling is regulated at a cantonal level, the majority of players in the latest licensing round were existing license holders. The future participation of other firms in the Austrian market is yet unknown.
Politicians perceive the market as marked by high entry barriers, aiming to dismantle them for some time now.
ÖVP and Greens in a Protracted Dispute since Years
Seeking to challenge the monopoly of Casinos Austria and boost choice, particularly in the online sector, the ÖVP and Green Coalition has been deadlocked in disagreements for years. They have failed to advance the market liberalization, as stipulated by JUNOS in 2019.
A draft law has been prepared, which offers more online licenses. However, there has been no consensus yet between ÖVP and Greens, regarding details like maximum stakes. The Greens, despite seeming to hinder the current draft, have indicated a readiness to engage in dialogue.
"We can still resolve the issue," Sigrid Maurer of the Greens affirmed.
High Prevalence of Unlicensed Online Gambling in Austria
Austria is home to only one licensed online gambling provider, Win2day, with a market share of 25%. The remaining 75% is accounted for by hundreds of unlicensed providers.
In 2022, the total online gambling market in Austria was estimated to be worth 410 million euros. Providers across the EU target Austrian players, aiming to acquire customers.
JUNOS asserts that these unlicensed providers in Austria exercise their right to provide services within the EU, considering their offer lawful. This sentiment is evident in their conscientious tax payments in Austria.
Austria Faced with a Crucial Decision
Although the new licensing process has begun, the possibility of at least reforming online gambling exists. To achieve this, ÖVP and Greens must collaborate closely and reach an agreement swiftly.
In Austria, a pivotal decision seems imminent: Retain the exclusive license for online gambling and tolerate the unlicensed gray zone that also generates additional tax revenue? Or authorize more licenses in the future to foster regulated online gambling?
The draft bill suggests that unlicensed providers could be blocked in the future through IP blocking. However, the legislator advocates for abolishing the monopoly position and offering more companies an opportunity to operate in the Austrian online gambling market.
The Austrian newspaper, Die Presse, reported that the Austrian Ministry of Finance has initiated the licensing process for gambling licenses, which adheres to old regulations, until 2027, raising questions about market liberalization and the participation of new companies.
Despite the disagreements between the ÖVP and Green Coalition for years, seeking to challenge the monopoly of Casinos Austria and boost choice, particularly in the online sector, they are yet to reach a consensus on details like maximum stakes for the new online licenses.
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