Austria Moves Toward a Multi-Licence Gambling Market as Monopoly Reform Gains Momentum

Austria’s long-standing online casino monopoly may finally be approaching its end following a dramatic shift in policy by the Finance Ministry. After years of speculation and only limited movement toward reform, a leaked draft gambling law published on Wednesday indicates that the government is preparing to open the online gambling market to multiple operators. The proposal represents one of the most significant developments in Austria’s gambling sector in decades and could fundamentally reshape both the online and land-based gaming landscape.

The timing is critical. The country’s sole online gambling licence, currently held by Win2Day, the online brand of Austrian Lotteries, is scheduled to expire in 2027. Rather than simply renewing the existing arrangement, the government appears prepared to launch a new licensing process under which several operators may be permitted to enter the market. Officials have reportedly concluded that maintaining a monopoly has become increasingly difficult in a digital environment, particularly given the cross-border nature of online gambling services.

The proposed reforms are intended to create a regulated online gambling market capable of attracting players away from unlicensed operators while maintaining strong safeguards for consumers. Beyond regulatory objectives, the reforms could also provide additional revenue for the state at a time when Austria faces growing pressure to improve its fiscal position and address budgetary challenges.

Under the draft framework, operators headquartered in Austria, the European Union, or the European Economic Area would be eligible to apply for licences. This would include companies already operating under licences issued by jurisdictions such as Malta or Gibraltar and currently active in Austria’s grey market. However, access to the new regime would not be unconditional. Operators seeking entry would need to demonstrate suitability by settling any outstanding tax obligations owed in Austria and resolving player claims that have resulted in legal rulings. In effect, companies currently operating in the market would be required to regularise their historical liabilities before becoming eligible for licensing.

One of the most notable elements of the proposal is the removal of limits on the number of online gaming licences. While the online casino market would become open to multiple participants, the lottery business would remain protected as a monopoly. The lottery concession, previously linked to the online casino licence, would be separated and continue under a single-operator structure. Competition for that exclusive licence is therefore expected to be intense.

Financial barriers to entry will remain substantial. Industry observers estimate that player claims alone could amount to hundreds of millions of euros, with numerous claimants awaiting compensation linked to previous legal decisions. Prospective licensees would also need to settle any non-time-barred tax liabilities as a prerequisite for approval. Once admitted to the regulated market, operators would face one of Europe’s highest gambling tax burdens. Following increases introduced in 2025, online gambling revenue is subject to a tax rate equivalent to 45 per cent of gross gaming revenue.

Additional financial requirements are expected to further limit participation. According to legal experts familiar with the proposal, operators would be required to maintain minimum share capital of €10 million. Such requirements could encourage market consolidation and effectively restrict participation to larger companies with the financial resources necessary to absorb the associated costs.

Consumer protection forms a central pillar of the proposed framework. The draft legislation would extend many of the safeguards already present in Austria’s land-based gambling sector into the online environment. A central self-exclusion system linked to Austria’s digital identification infrastructure would allow players to register directly through the regulator. Weekly deposit limits would be set at €250 for players under the age of 26 and €1,680 for those over 26, although higher limits could be permitted where players are able to demonstrate sufficient financial capacity.

The proposed rules would also impose maximum stakes of €2 per spin and cap winnings at €2,000. Progressive jackpots would be prohibited entirely. Additional restrictions would include controls on game speed, mandatory 15-minute cooling-off periods after every 90 minutes of play, and continuous monitoring of player behaviour to identify potential indicators of gambling-related harm or addiction. Taken together, these measures would create one of the most tightly regulated online gambling environments in Europe despite the planned opening of the market.

The government’s strategy for combating the black market combines market liberalisation with stronger enforcement. Officials hope the reforms will significantly increase the proportion of players using regulated operators. To achieve this objective, authorities plan to deploy a range of enforcement tools, including internet service provider blocking, payment blocking mechanisms, operator blacklists, test purchasing activities, and expanded regulatory enforcement powers.

Nevertheless, concerns remain about whether the proposed framework strikes the correct balance between consumer protection and commercial viability. Some legal experts have warned that the regulatory burden may make it difficult for licensed operators to compete effectively against unlicensed competitors. If operators conclude that the economics of the market are unattractive, there is a risk that interest in obtaining licences could be limited, undermining the government’s broader objective of increasing participation in the regulated sector.

The reforms extend beyond online gambling. Austria’s land-based casino sector, which is currently structured as a monopoly, may also face significant changes. At present, the country’s 12 casinos are divided into two concession packages consisting of urban and tourist-destination venues, both held by Casinos Austria. The new proposal would permit up to 12 separate concessions, potentially allowing multiple operators to enter the market and operate individual venues.

Although concessions could still be grouped together, regulators would be required to demonstrate objective justification for doing so. This could open the door for smaller operators to participate in the market rather than limiting opportunities to a single dominant operator. Whether such changes ultimately occur remains uncertain, as the government could attempt to preserve the existing package structure if it can provide sufficient justification. With one of the current concession packages expiring in 2027, greater clarity is expected over the coming year.

Further restrictions are also planned for the land-based sector. Proposed measures include reductions in the number of gaming machines, the gradual elimination of video lottery terminals, and the introduction of additional player protection requirements designed to reduce gambling-related harm.

Another aspect of the reform concerns regulatory oversight. Although policymakers have long discussed the creation of an independent gambling authority, the Finance Ministry has indicated that such a body may not be established until 2030 at the latest. Until then, regulatory responsibility would remain with the ministry itself. As a result, licences issued under the new framework would likely be awarded by the current government before eventually falling under the supervision of a separate authority.

Such a transition would represent an important institutional shift in a market where critics have frequently questioned the close relationship between government bodies and incumbent operators. The introduction of an independent regulator could address some of those concerns while aligning Austria more closely with regulatory structures seen elsewhere in Europe.

The precise timetable for market opening remains uncertain. Because both the online casino licence and one of the major casino concession packages expire in 2027, pressure is mounting to begin the tendering process. Recognising the possibility of delays, the draft legislation includes provisions allowing existing licences to be extended temporarily in order to avoid creating a regulatory gap that could encourage players to migrate toward unlicensed operators.

Any extension would be intended as a temporary measure and would need to be limited to the shortest period necessary to complete a new licensing process. Industry observers suggest that a two-year extension of existing licences is increasingly viewed as a likely outcome, which would place the launch of a new licensing regime around 2029.

Such extensions, however, could revive concerns previously raised by European courts regarding transparency in licensing procedures. The legal and political challenges associated with implementing the reforms remain significant, particularly given the need to complete domestic legislative processes, notify the European Commission, and navigate a mandatory standstill period before implementation.

Industry reaction has been cautiously positive. Representatives of Austria’s betting and gaming sector have welcomed the move toward an open licensing framework while emphasising the importance of ensuring that product restrictions do not make the regulated market unattractive to consumers. At the same time, concerns persist that excessive regulation could continue to drive players toward offshore operators.

Casinos Austria has taken a more critical stance, arguing that the proposed framework effectively rewards companies that previously operated outside Austria’s regulatory regime. The company has expressed concern that operators could continue operating in the grey market, settle outstanding liabilities when necessary, and subsequently qualify for licences under the new system.

The coming months will be crucial. The draft legislation will form the basis for negotiations among Austria’s governing coalition parties and will also be subject to public consultation. While sweeping revisions are not widely expected, amendments remain possible as discussions progress. Time is short, however, and the government faces pressure to advance the legislation before the parliamentary summer recess.

Even after domestic approval, the reforms must undergo review at the European level and could face legal challenges. As the expiration of key licences approaches, attention will increasingly focus on the structure of the future tender process, the final shape of the regulatory framework, and the timing of Austria’s transition from a monopoly model to a potentially competitive multi-licence gambling market.

By fLEXI tEAM