Austria Moves Closer to Liberalising Gambling Market with Major Regulatory Reform

Austria has taken a significant step towards opening its gambling market by submitting a comprehensive draft gambling law to the European Commission for review, marking one of the country's most substantial regulatory reforms in decades. The proposed legislation would replace the long-standing online gambling monopoly with a regulated licensing framework while introducing stricter player protection measures, enhanced supervisory powers and a modernised compliance regime for gambling operators.

The submission initiates the European Union's mandatory three-month standstill period, during which the European Commission and other Member States may examine the proposed legislation for compatibility with EU law, including single market and state aid rules. Although the law cannot be formally adopted until the review period has concluded, Austria's parliamentary process may continue in parallel, allowing lawmakers to prepare the legislation for implementation once the notification process has been completed.

A central feature of the reform is the introduction of an open licensing system for online gambling operators, ending the country's exclusive concession model. Under the proposed framework, eligible operators will be able to apply for licences provided they satisfy strict regulatory, financial and responsible gambling requirements. However, companies currently offering unlicensed gambling services to Austrian customers will be required to cease those activities by 1 January 2027 to remain immediately eligible for licensing. Operators that continue serving the market beyond that date would face an 18-month exclusion period from obtaining a licence, increasing to 24 months from 2030. Applicants would also be required to settle outstanding tax liabilities and satisfy unpaid player claims before licences can be granted.

The proposed legislation also introduces a broad range of responsible gambling measures aimed at strengthening consumer protection. These include the creation of a nationwide self-exclusion register covering online gambling, casinos and gaming machines, preventing excluded players from accessing gambling services across different operators. Mandatory deposit limits would apply to online gambling products, with lower limits proposed for young adults aged between 18 and 26. The reforms would further reduce maximum slot machine stakes, slow game speeds and introduce compulsory cooling-off periods after extended play sessions to help reduce gambling-related harm.

Enforcement powers would also be significantly strengthened under the draft law. Regulators would gain access to a digital supervisory platform featuring a central operator-independent deposit limit, alongside enhanced tools including payment blocking, website blacklisting and network blocking aimed at preventing illegal operators from targeting Austrian consumers. These measures are intended to increase channelisation towards the regulated market while reducing the presence of unlicensed gambling providers.

The reforms extend beyond online gambling to Austria's land-based casino sector. The legislation proposes a maximum of 13 casino licences, which may be awarded individually or in groups. Licensing authorities would be required to ensure an appropriate geographical distribution of casinos while avoiding excessive market concentration, balancing commercial competition with broader public interest and player protection objectives.

The proposed overhaul represents a fundamental shift in Austria's gambling policy, bringing the country closer to regulatory models already adopted in several other European jurisdictions. By combining market liberalisation with stronger compliance obligations, enhanced consumer safeguards and expanded enforcement powers, Austria aims to establish a more transparent and sustainable gambling framework while aligning its regulatory regime with evolving European standards. If approved following the European Commission's review, the reforms are expected to reshape the Austrian gambling market and create new opportunities for licensed operators while significantly increasing regulatory expectations across the sector.

By fLEXI tEAM