For several months now, a wind of reform has been blowing across Austria’s gambling monopoly. Until now, the online market has been dominated by a single licensed operator, but political, economic and legal pressures could well upset this balance.
An old and divisive monopoly
Since 2012, Win2Day, a platform operated by Austrian Lotteries under state supervision, has held the exclusive right to operate online casino games. This monopoly covers not only lotteries, but also related games such as poker, blackjack and virtual slot machines. The Austrian government justifies this position by citing the need to protect consumers, prevent addiction and guarantee fiscal stability.
But criticism is mounting. The European Gaming and Betting Association (EGBA) believes that this model is now ‘outdated’, unsuited to digital realities and contrary to the European dynamic of freedom to provide services. In its view, the system limits competition, reduces potential public revenue and creates a conflict of interest since the Ministry of Finance holds a large share of the public operator.
In addition, the absence of real competition prevents the development of technological innovations and limits the State’s ability to effectively control the parallel market, that of unauthorised but widely accessible foreign platforms.
The forces driving reform
Behind the desire for change are a number of factors. Firstly, the economic argument: according to the Austrian Betting and Gaming Association (OVWG), opening up the market to several licences would generate up to €1.4 billion in additional tax revenue by 2031. This potential contribution, in a tight budgetary context, is appealing to more and more political decision-makers.
European pressure is also playing a major role. Many EU member states, such as Sweden, Denmark and more recently Finland, have already abandoned their monopolies and adopted multiple licensing systems. These models have made it possible to better channel supply, strengthen player protection and increase transparency in the sector. Austria, by sticking to its single system, runs the risk of regulatory isolation and even legal challenges at European level.
Finally, regulation itself is becoming a matter of urgency. The unregulated market is attracting thousands of Austrian gamblers to uncontrolled foreign platforms. This phenomenon escapes national taxation, increases the risk of fraud and undermines addiction prevention measures. Opening up the market via multiple licences would provide an opportunity to control these practices, while guaranteeing a safer and more transparent environment.
The contours of a long-awaited reform
Several avenues are currently being discussed. The scenario favoured by some politicians is the introduction of a system of multiple licences, awarded to several private operators meeting strict compliance, security and liability requirements. According to estimates, between twenty and thirty companies could apply, including players already established in other European markets such as Bwin, Bet365 and Tipico.
Another, more cautious option would be to retain a monopoly but modernise it. This intermediate model would be based on a single licence but renewed under much stricter conditions, including increased surveillance and tighter control by an independent body.
This is another proposal put forward by the experts: the creation of an independent regulatory authority, detached from the Ministry of Finance, to avoid any suspicion of conflict of interest and to guarantee greater impartiality in decision-making.
Obstacles to overcome
Despite this impetus for reform, the road ahead remains strewn with pitfalls. Austria’s current legal framework, the Glücksspielgesetz (GSpG), is based on a centralised and protected approach to gambling. Changing this basis would require a complete legislative overhaul, or even constitutional adjustments.
Administrative delays, public consultations and parliamentary debates are likely to lengthen the timetable. What’s more, the current monopoly enjoys solid political and economic support: calling it into question could trigger disputes and even tensions within the government. The governing coalition (made up of the ÖVP, SPÖ and NEOS) is not speaking with one voice on the subject. Some are defending the status quo in order to preserve the stability and jobs linked to the public operator, while others are arguing for a rapid opening up of the market in the name of transparency and tax revenues.
Added to this are the fears of public health associations: how can we prevent the proliferation of operators from encouraging over-consumption of gambling or trivialising risky behaviour? The advocates of reform respond that a regulated, licensed market paradoxically offers better control tools than a system based on an outdated monopoly.
A decisive timetable
The mandate of the current monopoly ends on 30 September 2027. Before that date, a new invitation to tender will have to be issued. This is when the future of the Austrian market will be decided.
The transformation of the Austrian online gaming model would have far-reaching consequences. For players, it would mean more choice, better regulated offers and stronger guarantees in terms of data protection and the fight against addiction. For the State, it would mean significant tax gains and greater control over the sector, as well as increased regulatory responsibility.It remains to be seen whether the Austrian political class will have the courage to break with a model that has been established for more than a decade. The year 2025 could be the year of change: a decisive turning point towards controlled liberalisation that would see Austria join the circle of the most advanced European countries in terms of online gaming.