Austria’s Plan to Open Online Gambling Market Faces Early Test as Black Market Fears Grow

Austria is preparing to dismantle one of Europe’s last online casino monopolies, but the transition to a competitive market is already exposing a difficult balancing act. While the government wants tighter player protection and stronger oversight, the path it has chosen could leave a gap that industry observers believe illegal operators are ready to exploit.

A draft gambling law, now before parliament and the European Union, would replace the country’s long-standing monopoly with a regulated multi-operator online gambling market. The overhaul comes ahead of October 1, 2027, when the 15-year exclusive licence held by Win2Day, the online arm of Austrian Lotteries, reaches its end.

The reform, though, comes with strict conditions for operators already serving Austrian customers under licences issued elsewhere in the European Union.

Companies wishing to enter the newly regulated market would need to stop offering gambling services in Austria by January 2027. Those that continue beyond that point would face an 18-month exclusion from the licensing process. From 2030 onward, the penalty would increase to two years.

That requirement creates what is expected to be a minimum nine-month period during which many established online operators would disappear from the legal market before new licences are issued. During that time, companies are expected to resolve outstanding player reimbursement claims and settle unpaid taxes from previous years. Industry estimates place those liabilities in the millions of euros.

Whether the government’s timetable can actually be achieved is another question.

Even if parliament approves the legislation this summer, Austria must first complete the European Union’s notification process before the law can take effect. Only then can authorities begin creating a new licensing system, evaluate applications, award licences and establish a dedicated gambling regulator to replace the Finance Ministry’s current role.

Political analysts familiar with Austrian legislative procedures believe that completing all of those steps within roughly a year may prove optimistic. Some also point to the possibility of legal objections at the European level, which could slow the process even further.

That uncertainty has become one of the industry’s biggest concerns.

If licensed operators are forced to withdraw before replacements are authorised, many players may simply migrate to offshore websites that continue accepting Austrian customers. Trade groups argue those brands are already familiar to consumers and could become the biggest beneficiaries of any prolonged transition.

The situation has also created frustration among operators that exited the Austrian market voluntarily before the reform process gathered pace.

Companies such as Tipico and Merkur withdrew their online offerings well ahead of the proposed legislation, effectively respecting the government’s direction before it became law. Under the current proposal, however, they receive little practical advantage for having left early, while firms remaining active until the deadline could still qualify after serving only the required cooling-off period.

Some observers believe that sends the wrong message to operators weighing compliance in future regulatory reforms.

The financial hurdle for entering Austria’s future market is equally significant.

Beyond resolving historical claims and tax obligations, licensed operators would also face a proposed 45% tax on online gambling revenue. Legal experts suggest the combined costs may discourage even major international brands from applying for licences.

Some also question whether parts of the government’s strategy work against each other. Recovering historic tax revenue depends on operators generating taxable business, while forcing companies out of the market for months inevitably reduces that tax base.

Austria’s regulatory model also introduces some of Europe’s stricter player protection rules.

The proposal includes mandatory 15-minute breaks after every 90 minutes of gambling, a €5 maximum stake per spin, minimum spin speeds, and a €10,000 cap on winnings from a single game. Players under 26 would be limited to weekly deposits of €250, while older customers would face a €1,680 weekly cap unless they qualify for higher limits through financial checks.

Those safeguards are intended to channel customers toward licensed platforms. Yet some industry specialists question whether heavily restricted legal products can successfully compete against unlicensed sites offering fewer limitations.

Germany provides a nearby example. Its regulated online gambling market opened in 2021 with similarly ambitious goals, but industry estimates suggest illegal operators still accounted for more than half of online gambling revenue in 2024. Operators there have repeatedly argued that high taxes and strict product restrictions weakened the legal market’s ability to attract players.

Austria is now approaching a similar crossroads.

The government’s objective is straightforward: replace the monopoly with a competitive, regulated market that offers stronger consumer protections while reducing illegal gambling. Whether the transition period strengthens that goal or unintentionally drives customers elsewhere may become clear long before the first new licences are awarded.

Source: igamingbusiness.com

Austria’s Plan to Open Online Gambling Market Faces Early Test as Black Market Fears Grow

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