Experts on addiction urge for categorizing sports betting as gambling in an open letter within the Austrian context.
Various professionals in addiction prevention have penned an open letter to Austrian politicians on Monday. Their main request is to categorize sports betting as gambling in the future within Austria. Beyond safeguarding players, it's also about generating tax income.
Over 200 individuals have endorsed
On Monday, an open letter titled "Sports Betting = Gambling" was delivered to all relevant politicians in both federal and state governments, as reported on orf.at. The document, signed by over 200 people, is publicly accessible online.
Among other points, it emphasizes that Austria is the sole EU country where sports betting is classified as a skill-based game instead of a game of chance. Despite this classification, wins largely do not stem from players' skills; rather, the bookmakers' house edge is even more considerable than in traditional games of chance.
Gambling addiction among sports bettors is escalating
One of the signatories, Monika Lierzer (director of the Styria gambling addiction counseling center), highlighted that the proportion of gambling addicted sports bettors among all gambling addicts is alarmingly growing at a rapid pace:
Five years ago, it stood around ten percent. Unfortunately, it primarily affects young men with a particular interest in sports. They believe they possess expert knowledge, hold an advantage, and can thus win more easily. However, this is merely an illusion. – Monika Lierzer, director of the Styria gambling addiction counseling center, source: ORF (Styria)
In the letter, the recognition of sports betting as a game of chance, along with the implementation of player protection mechanisms and the regulation of advertising, are also advocated.
Austrian gambling regulations could undergo a revamp
Classifying sports betting as a game of chance aligns with a series of initiatives aimed at modernizing Austrian gambling regulations. Critics often point out the high black market share.
Austria's gambling monopoly, which is seen as subpar in terms of player protection, covers stationary casinos, online gambling, and lotteries. Even a significant portion of installed slot machines fall under the monopoly.
Critics argue that the provider Casinos Austria dominates a substantial part of the market through its main company and subsidiaries because it has received numerous exclusive licenses. Nevertheless, many illegal providers also operate on the market, paying taxes and operating within a gray area according to their own interpretation.
The new licensing procedure is currently underway, with Casinos Austria having applied for all concessions once again. However, it remains uncertain whether licenses will be awarded again based on the same model. So far, there has been no consensus in the Austrian parliament.
The state could reap benefits from a legislative change
Currently, neither turnover tax nor a concession fee is charged on sports betting in Austria. Instead, a betting tax of 2% of the stake is imposed when a bet is placed.
The letter's signatories advocate for substantial income potential, as per experts' recommendations, with the tax revenues earmarked for sports promotion and addiction prevention.
It will be fascinating to observe if the open letter's signatories can influence politics and if the presented arguments could trigger the long-awaited reform of gambling regulations in Austria.
Despite Austria being the only EU country classifying sports betting as a skill-based game, an online petition called "Sports Betting = Gambling" signed by over 200 individuals in Germany and Austria, including Monika Lierzer from the Styria gambling addiction counseling center, is urging lawmakers to reconsider this classification. The petition highlights the alarming increase in gambling addiction among sports bettors, particularly young men, and suggests recognizing sports betting as a game of chance to implement player protection mechanisms and regulate advertising in online casinos Germany and Austria.
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