Austria has got underway with its review of the gambling laws and privileges granted to Casinos Austria, beginning the regulatory pathway that will enable the country to launch a liberalised online gambling market.

The latest developments follow a new Draft Bill finalised by the Federal Ministry of Finance which seeks to end the monopoly privileges of Casinos Austria regarding both online sports betting and casino, and instead enable EU-licensed operators to enter the market.

The mandate has been backed by the tripartite coalition government, comprising the Social Democratic Party (SPÖ), Austrian People’s Party (ÖVP) and Liberal Conservatives of NEOS.

The support of SPÖ is symbolic, marking the first time that the party has dropped its long-standing defence of Casinos Austria and its monopoly rights on gambling. Concessions were made by SPÖ leader, Andreas Babler, to form a government in 2025.

The draft bill has called on the Austrian government to form a new, liberalised framework and launch a multi-licence regime in 2029 that will end Austria’s status as the last EU nation to maintain monopoly privileges for online gambling.

Austria has spent more than a decade at the centre of legal disputes before the Court of Justice of the European Union (CJEU) over the protection of the Casinos Austria Win2Day monopoly, with repeated claims that its online gambling framework restricts EU market freedoms. 

Circumstances have been aggravated by a decade-long legal EU dispute between Austria and Malta on penalties and liabilities related to Austrian consumers wagering via Malta-licensed operators. Though siding with Austria, the CJEU has warned that Austria must end monopoly privileges and form online gambling laws that are compatible with EU principles. 

Central controls

While the government has committed to opening the market to international operators, the initial draft demands that Austria implements a tight and centralised control of online gambling activities. 

Proposed measures include a reduction of the maximum online stake from €10 to €2 per spin, as well as a lowering of maximum winnings from €10,000 to €2,000.

Licensees would also be required to comply with enhanced affordability monitoring, identity verification requirements and centralised player protection controls administered by Austrian authorities.

The taxation framework remains undecided and is expected to become one of the most contentious elements of the reform process. Austrian MPs have lobbied to pursue a high-tax model in order to preserve the fiscal revenues that are currently generated through the monopoly structure.

However, concerns have already emerged over whether Austria risks replicating aspects of Germany’s Fourth Interstate gambling regime. Critics have argued that Germany’s combination of strict limits, high compliance costs and elevated tax burdens has weakened channelisation and encouraged consumers to seek offshore alternatives.

Casinos Austria to have its say 

Casinos Austria has reacted cautiously to the liberalisation plans, warning lawmakers against rewarding operators that previously targeted Austrian consumers without a domestic licence. It has called for a “cooling-off period” that would prevent previously unlicensed operators from immediately entering the market. 

Executives have indicated that Casinos Austria is prepared to provide regulators with a list of operators that it considers to be ‘bad actors that knowingly circumvented Austrian gambling laws’.

At the same time, the company has urged policymakers to focus on channelisation objectives, arguing that the legal market must remain attractive enough to compete with offshore websites.

Casinos Austria maintains that player protection goals cannot be achieved if consumers migrate to unregulated platforms operating beyond Austrian oversight.

Land-based sector seeks protection

The debate extends beyond online gambling as MPs and regional stakeholders have voiced concerns about the future of Austria’s land-based casino industry, which remains a significant source of employment, tourism revenues and tax income.

Industry representatives have urged lawmakers to protect what they describe as a “tax-effective” casino network that generates predictable revenues for federal and regional governments. Several states are expected to lobby heavily against reforms that could weaken the competitiveness of land-based venues or disrupt existing tax arrangements.

The road to 2029

Austria is just embarking on its first steps towards what appears to be a lengthy reform process.

Coalition partners will continue negotiations on stake limits, tax rates, licensing criteria and the overall structure of regulatory oversight. The National Council will ultimately determine the final shape of the legislation and whether Austria can launch a competitive multi-licence market by 2029.

The central challenge for policymakers will be balancing consumer protection with market competitiveness. 

As negotiations continue, critics warn that if Austria follows Germany’s model too closely, it risks liberalising its gambling market in name only, leaving licensed operators unable to compete effectively against the illegal market the reforms are intended to eliminate.