Austria to open iGaming market as Finance Ministry draft ends monopoly

Austria’s Finance Ministry has leaked a draft gambling law that would end the country’s online casino monopoly and open the market to an uncapped number of licensed operators, ahead of the current Win2Day licence’s 2027 expiry.

The draft confirms that companies headquartered in the EU, EEA or Austria, including grey market operators currently active under Malta or Gibraltar licences, would be eligible to apply. Grey market entrants face a specific condition: full disclosure and settlement of all outstanding Austrian tax liabilities not yet statute-barred, plus settlement of player claims rulings. Players’ lawyer Oliver Peschel told Der Standard those claims alone amount to “a few hundred million euros”, with thousands of players still awaiting payments.

The lottery concession, previously bundled with the online casino licence, would be decoupled and remain a state monopoly.

Cost of Entry

Austria’s tax environment is among the most demanding in Europe. Online gambling is already taxed at 45% of GGR following 2025 increases. Applicants would also need to demonstrate a minimum share capital of €10 million, a threshold that Vienna-based gambling lawyer Arthur Stadler told iGaming Business could drive consolidation and exclude smaller operators from the outset.

Stadler flagged a structural risk at the heart of the reform.

“The real danger is that the business model simply does not pencil out for operators, and that the industry does not embrace the new licences at all, because an operator holding an Austrian licence would, in practice, be unable to compete against the black market. The macroeconomic consequence of that would be that the channelling rate the legislator is aiming for is never achieved.” — Arthur Stadler, gambling lawyer

Player Protection Requirements

The draft extends Austria’s land-based player protection framework into the online sector. Measures include a central self-exclusion register linked to Austrian digital ID systems, weekly deposit limits of €250 for under-26s and €1,680 for over-26s (with the higher cap removable on proof of sufficient liquidity), maximum stakes of €2 per spin, a maximum win per round of €2,000, a ban on jackpots, mandatory 15-minute cooling-off periods after every 90 minutes of play, and ongoing monitoring of player behaviour.

The framework sits alongside a 45% GGR tax rate, creating conditions that Stadler argues may not be commercially viable enough to draw operators away from unlicensed alternatives.

Channelisation Targets and Enforcement

The Finance Ministry has set a channelisation target of 80%, up from the current 45%. The industry estimates the real rate is lower still. To close the gap, the draft combines market opening with a multi-pronged enforcement push: ISP blocking, payment blocking, blacklisting, test purchases and expanded regulator powers.

Whether the product restrictions undermine the channelisation goal is the central question the reform leaves unanswered. It is a tension operators and regulators across Europe have grappled with as tight product frameworks have continued to push players toward unregulated alternatives, as covered in our 2025 regulatory round-up.

Land-Based and Governance Changes

Austria’s 12 land-based casinos are currently split between two packages, both held by Casinos Austria. Under the draft, up to 12 individual concessions could be granted, potentially allowing new entrants to operate one or two venues. The city casino package (Stadtpaket) expires in 2027.

An independent gambling authority is due to be established no later than 2030. Until then, the Finance Ministry retains oversight, a structure that critics argue creates conflicts of interest given the state’s long-standing relationship with Casinos Austria and its subsidiary Austrian Lotteries.

VLTs face a planned phase-out under the same reforms, alongside reduced machine numbers and new land-based player protection requirements.

Industry Reaction

Casinos Austria did not respond to iGaming Business for comment. Spokesperson Patrick Minar told Der Standard that the plan to allow grey market operators to settle liabilities and then apply for a licence was “a reward for lawbreakers”, arguing the framework allows operators to trade illegally, resolve outstanding obligations, and then enter the legal market on equal terms with compliant operators.

Austrian betting and gaming association ÖVWG offered a cautious welcome.

“It is great that the Austrian government plans to introduce an open online gambling licensing system with qualitative criteria. Of course, it will be important to get a balanced law when it comes to product restrictions to make sure that Austrian players will be accepting what the future licensed market can offer them.” — Simon Priglinger-Simader, president, ÖVWG

Timeline

Negotiations between Austria’s three governing coalition parties, the Social Democrats, NEOS and the People’s Party, are scheduled to begin in June 2026, alongside a public consultation. The government must pass the legislation before the summer recess, after which EU notification and a three-month standstill period follow.

With the online licence and city casino package both expiring in 2027, transitional extensions are widely expected. Stadler estimates a two-year extension is the likely outcome, placing the start of any new licensing regime around 2029. The formal parliamentary process has not yet been initiated. Given the pressure already facing Gibraltar-based operators from UK tax changes, how many grey market operators choose to pursue an Austrian licence under these conditions remains to be seen.

Source: iGaming Business