Austria's online gambling market is at a critical transformation phase. As the long-term monopoly license is about to expire, there is a high demand for regulatory reform, and the market prospects are attracting widespread attention.
Despite being under strict regulation for a long time, Austria's online gambling market has shown robust growth in recent years. According to data from Statista, the market is expected to reach 632 million euros by 2024, with an anticipated growth to about 777 million euros by 2029, at a compound annual growth rate of 4.22%. This growth is mainly due to increased user engagement and the push of digital trends. SigmaPlay
However, compared to countries like Sweden, the market penetration of online gambling in Austria is still low. For example, in 2021, online gambling revenue accounted for 35% of total gambling revenue in Austria, while in Sweden it was as high as 80%. This indicates that there is still significant room for development in the online gambling sector in Austria.
Regulatory System and Monopoly Model
Austria's gambling activities are mainly regulated by the Gambling Act (GSpG), with the Federal Ministry of Finance responsible for oversight. Currently, online casinos and lottery businesses are monopolized by Austrian Lotteries and Casinos Austria. The sole online gambling license held by the company will expire on September 30, 2027.
This monopoly model has long been criticized within the industry. The Austrian Gambling and Betting Association (OVWG) points out that the current licensing system limits market competition, hinders consumer choice, and fosters black market gambling activities. Additionally, the Ministry of Finance holds a 33.3% stake in Casinos Austria, which is considered a conflict of interest.
Political Dynamics and Reform Prospects
As the current monopoly license is about to expire, the Austrian government faces a critical decision on whether to open up the market. In 2025, the government plans to initiate a new licensing tender process, providing an opportunity for market reform. However, political factors may affect the progress of reforms. For example, although the Freedom Party (FPÖ) supports market opening, its influence in the government is limited. Meanwhile, a reform bill proposed by the Ministry of Finance failed to pass due to the Green Party's demand for stricter player protection measures.
Industry insiders call for the establishment of an independent regulatory body to ensure the fairness and transparency of the licensing process. They point out that the current licensing system design allows only Casinos Austria to meet all requirements, which constitutes unfair competition for other potential operators.
Legal Challenges and International Impact
Austria's gambling regulatory system also faces legal challenges. For example, the Austrian Supreme Court ruled that some state gambling laws do not cover online betting, allowing foreign online gambling companies operating in these states to not violate local laws. Additionally, Malta's Court passed "Act 55," which stipulates that if a foreign judgment infringes on Maltese public order, Maltese courts may refuse to recognize it, posing obstacles for Austrian players seeking compensation.
These legal issues highlight the complexity and limitations of Austria's current regulatory system and intensify the urgency of reforms.
Future Outlook and Conclusion
Austria's online gambling market is at a crossroads of transformation. With the monopoly license expiring and the political environment changing, the possibility of market opening is increasing.
Introducing a multi-license system not only helps to enhance market competitiveness and consumer protection but also increases tax revenue. However, the success of reforms depends on the political will of the government, the independence of regulatory bodies, and the perfection of the legal framework.
Against the backdrop of successful implementation of multi-license systems in other European countries, Austria has the opportunity to learn from these experiences and promote the healthy development of its online gambling market. The next few years will be a critical period in determining the direction of Austria's online gambling market.
