Austrian gambling sector shaken: New administration endorses debatable gambling monopoly
Flip the Script
From the Desk of Timm Schaffner, with a bits of spice from Angela Burke
Posted on: 5th March 2025. Last updated on: 30th April 2025.
The new Austrian government coalition of the mighty ÖVP, the ever-loyal SPÖ, and the young buck, NEOS, has put an end to the wild conjectures and decided in their coalition agreement to keep the gambling scene just the way it is. Hell, they're even gonna tax it more.
The Austrian politicos wanna keep the gambling monopoly (symbolic image). © our site.com/DALL-E
Governments Push Away Reform Whispers
Even the smartest cookie in the jar has been shouting about the need for a shake-up of Austria's gambling scene, as other European countries have shown how it's done by opening their borders to private providers. But in Austria, things are different. It's all about the exclusive licenses for land-based casinos and online gambling, held by the partially state-owned, swanky Casinos Austria AG, until at least 2027.
But after the publication of the coalition agreement of this fancy-schmancy coalition, it's clear that the gambling monopoly is here to stomp. Yep, you heard that right, folks, as reported by Der Standard.
The government's plan is also to take a second, closer look at sports betting. It's currently considered a game of skill, but after a possible reclassification as a game of chance, the betting tax will jump from a measly 2% to a whopping 5%.
The general gambling tax, which is taken from the dough made from land-based gambling, ain't no slouch either, going up by around 10% – causing a right old ruckus from licensed gambling providers over the last week.
Tax Hike Brings Casinos Austria's Nose out of the Hay
The planned tax hike in land-based casinos isn't looking good for the industry reps. Casinos Austria AG and the Austrian Lotteries Group have warned about some serious financial baggage, estimate annual additional costs of over 100 million euros.
Lemme paint you a picture. In 2023, the company coughed up 724 million euros in taxes and duties with a profit of just under 183 million euros. Now you can see why a significant increase in taxes would be a real pain in the bills, threatening hundreds of jobs to boot.
Smart folks caution that these extra revenues often don't show up when tax rates are increased in relation to gambling. See, legal providers may have to cut back on the payouts to stay in the green, and more players might migrate to the black market, which is already spreading like wildfire in Austria.
Stiffer Measures Announced Against Shadowy Dealers
The ruling parties have also promised to crack down on the black market with some hard-hitting action. To do this, they plan to create an authority akin to Germany’s Joint Gambling Authority of the States (GGL). Currently, the power lies with the Federal Ministry of Finance (BMF) in Austria, which ain't exactly up to the job as a gambling supervisory authority.
The success of these measures against shadowy providers may depend on the European Court of Justice. A court in Malta recently made a game-changing decision, ruling not to swallow Austrian judgments against Maltese gambling providers.
The ECJ now needs to decide if Malta's provider-friendly protective laws are kosher according to EU law. On the flip side, they must also rule on whether Austria's gambling monopoly interferes with the freedom to provide services in the EU.
If the ECJ calls Austria's monopoly a no-go according to Union law, it could change the game for a lot of providers that are currently running wild in the Austrian market without a license. But it's still way too early to jump to any conclusions.
- The Austrian government, despite calls for liberalizing the gambling industry, has announced that it plans to maintain the gambling monopoly and even increase taxes.
- Other European countries have demonstrated the benefits of open borders for private gambling providers, but Austria remains steadfast in its exclusive licenses for land-based casinos and online gambling.
- The general gambling tax and sports betting tax are set to increase significantly, causing controversy among licensed gambling providers.
- Casinos Austria AG and the Austrian Lotteries Group have voiced concerns about the potential financial impact of the tax hike, estimating additional costs over 100 million euros annually.
- The government has also announced stiffer measures to combat the black market, including the creation of an authority similar to Germany’s Joint Gambling Authority of the States (GGL).
- The success of these measures may depend on the European Court of Justice, which is currently considering whether Malta's provider-friendly protective laws comply with EU law and whether Austria's gambling monopoly interferes with the freedom to provide services in the EU.
