Austrian Gambling Expenditure Reaches an All-Time High in 2023, Surpassing Previous Records with a Total Wager of Approximately 2 Billion Euros!
In the heart of Europe, Austria's gambling market is experiencing a surge, yet it remains a complex landscape. The latest study by Branchenradar.com, "Gambling & Sports Betting in Austria 2024," reveals that Austrians spent around 22.9 billion euros on gambling in 2023, with online gambling contributing the second-highest amount of 429 million euros to the overall gross gaming revenue, albeit with a relatively modest 3% increase compared to 2022.
The market is characterised by a strong divide between the regulated licensed sector and a dominant black market, primarily operated by foreign-licensed companies. The state-licensed monopoly, controlled by Win2day, holds only about 30% of the market, while approximately 70% belongs to operators licensed in other EU countries.
The digital sector is where the market flourishes the most. Online gambling is expected to grow significantly, with forecasts predicting the market to reach around 777 million euros by 2029, growing at an average annual rate of 4.22%. High internet penetration (95.3%) and consumer loyalty support this growth.
Casinos, lotteries, and sports betting in Austria still operate under a monopolistic regulatory framework, but cross-border operators licensed elsewhere dominate the digital and betting segments. The black market maintains a strong foothold due to restrictions and monopolistic controls domestically, as well as potential negative effects from increased gambling taxes warned by industry players who argue that tax hikes could push more customers offshore to unregulated operators.
The domestic industry also faces reputational challenges linked to ongoing corruption investigations involving prominent industry players like Novomatic AG, which recently decided to sell its Austrian gaming arm amid these probes.
Austria's gambling regulation is poised for changes, reflecting tensions between maintaining a monopolistic approach and the realities of cross-border and online gambling influence. The Austrian Association for Betting and Gambling (OVWG) argues that the gambling monopoly in Austria is not justifiable under EU law and has called for the opening of the market to more legal gambling providers.
The upcoming Euro 2024 could potentially increase sports betting revenue, but it is unclear whether a liberalization of the market would automatically result in more turnover. The same study reports that Austrians lost approximately 2.11 billion euros in gambling in 2023, including revenues from the black market.
It is also worth noting that the study indicates that the positive development of gaming revenues did not occur across all segments. Lotteries, the most profitable form of gambling in Austria, lost 2.6 percent in player turnover, marking the second consecutive year of decline.
The study can be purchased on the market research company's website, and companies licensed in Malta and other EU countries can offer their games in Austria and pay taxes, contributing to a more transparent estimation of the black market. However, there may still be a certain dark figure in the gambling market due to undiscovered gambling activities.
The recent suggestion by addiction experts to classify sports betting as gambling could lead to changes in the upcoming gambling statistics, adding another layer of complexity to Austria's thriving but complex gambling market.
[1] Branchenradar.com, "Gambling & Sports Betting in Austria 2024" [2] Kronen Zeitung [3] Entain [4] OVWG [5] Novomatic AG
- What about the future of the Austrian gambling market, given the projected growth of online gambling to reach around 777 million euros by 2029?
- The divide between the regulated licensed sector and the black market is a significant challenge in Austria's gambling industry.
- While the state-licensed monopoly, Win2day, holds only about 30% of the market, over 70% is controlled by operators licensed in other EU countries.
- Education and self-development in personal-finance or wealth-management could help individuals make informed decisions when it comes to investing in the thriving gambling market.
- Career development opportunities may be found in the fintech sector, as technology increasingly plays a role in the gambling industry, particularly in online gambling.
- The domestic industry faces questions over its ethics due to ongoing corruption investigations involving prominent players like Novomatic AG.
- The study suggests that the decline in lotteries, the most profitable form of gambling in Austria, demonstrates a need for new strategies in the industry.
- The Austrian Association for Betting and Gambling (OVWG) argues for the opening of the market to more legal gambling providers, to ensure compliance with EU law.
