Leaked Proposal, New Gambling Authority, and Austria’s Post-Monopoly iGaming Plan

A leaked proposal for Austria’s iGaming legislation post 2027, when the contract for the current monopoly expires, was met with public and industry backlash when it was suggested the Austrian government may continue the monopoly. Right now, it is still anyone’s guess as to what direction they will take, but we do now this. Austria’s government is currently working on the draft, and sometime in the next few months they will finish the legislation and publish it.

Statements have been made surrounding some of the finer details of the draft. While the main issue has not been addressed directly, we do know they are contemplating setting up an independent gambling authority, amending the current situation which has a massive conflict of interests. By which, we mean the same Ministry regulating and licensing gambling, which also benefits from them financially through taxation. Officials have kept tight lipped about the future of Austria’s gambling monopoly, but there may be reason for hope for industry insiders.

Current iGaming Situation

While there are no official set deadlines for Austria’s iGaming market after 2027, the government is expected to release its draft for what will happen next early this year. For context, Austria has a gambling monopoly in which Casinos Austria AG and Win2Day run the landbased and online casino markets, respectively. This has been the status quo since 2012, when Austria granted licenses to Casinos Austria AG, and Win2Day, which is operated by the Austrian Lotteries company (Österreichische Lotterien GmbH). They hold the licenses on all landbased Austrian casinos, and Win2Day has the sole rights to online casino gaming in Austria until 2027, September 30.

There are currently 12 landbased casinos in Austria, all run by Casinos Austria AG, and only 1 official online casino. The state also has a 1/3 ownership of the state lottery, which is linked to Casinos Austria AG, and so it has an indirect stake in these companies. This is really one of the last legal iGaming monopolies in Europe, and Austria has come under heavy fire by the EGBA and other organizations representing operators, as the majority of European countries have liberalized markets.

Topics of Discussion in New Austrian Legislation

A leaked draft back in December seemed to suggest that Austria would keep its monopoly. The draft stated that there will be a limited number of landbased casinos and a single license for online casinos, and instead reformed payment methods, lowered deposit limits, and explored an option to introduce a state monitored blocking register. When confronted with this potential draft, lawmakers were quick to distance themselves from the implications, and they declined to comment on the specifics.

This proposal drew criticism from operators and players alike, and the ministry indicated that it would review the situation thoroughly. Recently, the Ministry of Finance, which is responsible for Austria’s iGaming legislation, stated that a new draft is in the works. They will be looking to set new standards relating to:

• Player protection
• Age dependent loss limits
• Payment blocking
• Domain blocking
• Introducing fines
• Undercover “test plays” to expose illegal casinos

Back in February, a further development on Austria’s gambling monopoly was promised, exciting insiders into thinking that change was potentially on its way. Following the backlash to the leaked draft and the government’s statement that it would revise the situation, it is really anyone’s guess as to what may happen next.

Current Regulator of Austrian iGaming

One of the biggest problems groups like the EGBA and operators have with Austria is that there is no independent gambling control board. Duties like issuing licenses, regulating iGaming and making new laws for operators is all held by the Ministry of Finance. The Ministry that also collects state tax from iGaming operators, and has 1/3 stake in the Austrian Lotteries, and thus Casinos Austria AG and the Win2Day online operator. This system was the norm in many European countries, though the majority have now opened their markets and ended their monopolies.

Denmark was the first Scandinavian country to open its market, back in 2012, and since then, Sweden opened its market. Now, Finland is also looking to end its monopoly, setting the deadline for the reforms in 2027. Norway still holds onto its monopoly, and it is one of the last countries to do so. Most of Europe now has open markets, with the exception of Norway, and France, which is one of the last EU countries where online casinos are technically illegal.

But for Austria, this monopoly is one that has drawn scrutiny from operators and players alike. When pressed for comments, Austrian lawmakers suggested the system may be revised in the new drafts.

Austria Battling the Black Market

There were also some hints at updating the player protection and responsible gambling measures for online gamers in Austria. The biggest topic, however, seemed to be Austria’s plight against the black market. Blocking domains and cutting off black market associated payment methods were the main criteria investigated by the Austrian authorities. They also proposed running undercover test plays, which would seek to expose any unregulated gambling sites, and help the gambling authorities to identify and block these sites. The CEO of the Austrian operator Admiral, Monika Racek, insisted on having more measures to help fend off illegal gambling sites, and protect players. She stated that the state turns a blind eye to these domains, which have no player self exclusion, no limits and no control.

She suggested that a multiple license system would demand new protocols for protecting players, introducing stricter responsible gambling measures and creating safer environments for players. There are more than enough precedents for this, and that wouldn’t be the only benefit of opening the Austrian gambling market. With more options, the competition grows and so too do the products that players can find. When this happens, it gives players more to look forward to within the licensed channels, and thus can help reduce the appeal of playing at black market gambling sites.

Potential Scenarios That Can Unfold

This discussion is not as simple as Austria keeping its monopoly or opening its market. There are many in-between scenarios that the authorities can test out instead, and there is even a remote chance that they will apply a temporary license extension to buy more time, albeit this is an unlikely scenario. As the discussions are being held a good 1.5 years in advance, and they have many options to choose.

The Monopoly Stays

Austria renews the monopoly, integrating a new gambling authority to avoid conflicts of interests, and closes down on the black market

Partial Liberation of the Market

Certain verticals, like online sports betting or online casino games, are opened to multiple operators. They could do this with clauses such as the operators have to base their Austrian operations with a physical office, create a framework for local employment, and obtain local licenses. But this model would only allow a handful of operators to enter Austria

Open, Competitive Licensing Model

Fully open the doors to competition, allowing internationally based iGaming operators to apply for Austrian licenses, and create a competitive iGaming scene. It would align with most European gambling markets, and reduce player interest in the offshore, unregulated markets

Extending the Current Licenses

An extension would basically put off the reforms for a few years, giving authorities more time to work on building the ideal model. They will most likely still introduce player safety and black market restricting measures in the meantime

Partial Liberation Pilot Scheme

Just like the monopoly was given a 15-year schedule, Austria could trial a partial market opening, possibly giving 3-5 year licenses to a handful of operators to test the waters. It is more of a middle ground, and will give the authorities the data they need after the trial is finished to make the final decision

Monopoly Extension with Sunset Clause

This is the reverse scenario, in which the authorities opt to extend the monopoly for a limited period of time, and introduce a clause that commits to opening the market in the future. The authorities would have already decided to open their market, but by introducing a sunset clause they can buy time to figure out how to set up the safeguards without losing credibility

State monopolies, which were once the norm in Europe, are gradually being phased out. In their place, regulated liberal markets are opening, which allow fair competition and give players a more diverse iGaming market to enjoy. Austria’s lawmakers will definitely want to keep up with European standards, and not risk extending their outdated system for fear of losing more players to the black market. They may double down and continue the status quo, but going on the backlash from the original leaked document, it seems Austrians are ready for changes.