Getting Rid of Monopolies: OVWG's Urgent Request
The Austrian gambling reform is in full swing, with a new regulatory authority aiming to simplify the monitoring and control structures of the Ministry of Finance. However, the state gambling monopoly of Casinos Austria remains intact, sparking criticism from the OVWG (Austrian Association for Betting and Gaming), which is calling for the abolishment of the monopoly and the introduction of a modern European licensing system for operators.
One Monopoly for Online Gambling
In an interview with the Kronen Zeitung, Raffaela Zillner, the Secretary General of the OVWG, expressed concerns regarding the bill's potential impact on the Austrian market. If passed, this would result in only one provider of online gambling in the country: the state monopoly of Casinos Austria. It operates an online casino through its win2day platform. All other providers licensed in the EU would be considered the same as international operators, regardless of their tax payments and job generation in Austria.
This could raise questions about whether the gambling monopoly truly benefits the Austrian market and player protection. Zillner urged the abolishment of the monopoly and adopted a modern licensing system in line with European standards.
In March, President Claus Retschitzegger of the OVWG accused the government of a lack of transparency in the new gambling regulation. Despite being a taxpayer and employer, the OVWG was unaware of plans via media reports. The proposed updates to the Gambling Act would significantly affect member companies and major sports events. The sports sector alone would face a €100 million shortfall without online gambling.
Lack of Discourse with Industry
Zillner further advocated for open dialogue between the government and the industry. She expressed her confusion over the government's silence. The OVWG was calling for clear, sustainable regulation to ensure businesses weren't singled out for the misconduct of Novomatic AG and Casinos Austria, which are currently under scrutiny by the Ibiza U Committee.
The previous major change to the Gaming Act dates back over a decade. A focus was placed on licensing for traditional gaming machines, while a war against illegal machines ensued. However, incoherence exists among the various federal states due to different regulations.
Limited Concern for Player Protection
Zillner also challenged the argument that excluding EU-licensed online gambling providers from Austria is necessary for player protection. The gamut of gambling options - lotteries, sports betting, slot machines, online casinos, etc. - represent varying levels of risk for problematic gambling. Slot machines, for instance, are the most dangerous, yet there's an oligopoly of up to 27 licenses. In contrast, lotteries, with their lower addiction potential, have a monopoly. This inconsistency may worsen with the potential generalization of online gambling.
Inconsistent Gambling Laws
OVWG criticized proposed amendments to the gambling law in Upper Austria, allowing slot machines in public areas. Cinemas, bakeries, and supermarkets could soon host slot machines. SPÖ party chairman Michael Linder opposed the plan, arguing for a ban on small games of chance instead.
Gambling experts believe black markets can't be eliminated through bans, but by legalizing them and boosting consumer protection. The OVWG similarly objected to the planned network blocks for foreign online operators, which pose a threat to player protection. The DNS blocks are unhealthy for player protection.
The OVWG has long criticized Austria's gambling regulations. In October, researchers from the Universities of Osnabrück and Passau published a study concluding that Austria's current gambling law is incongruous and at odds with EU freedom to provide services.
One critique pointed out that three more gaming licenses, as listed in the 2010 Gaming Law, weren't opened up for bidding across the European Union. Despite a decision by the European Court of Justice (ECJ), only partially government-owned Casinos Austria received these licenses. This conflicts with the "coherence requirement" and is unlawful. Additionally, it's not legally justified that poker can only be played at Casinos Austria.
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Source: www.onlinecasinosdeutschland.com
