Could Austria Finally Liberalize Online Gambling?

After months of political uncertainty following last October’s elections, Austria has finally formed a new coalition government—but what does this mean for the country’s heavily restricted gambling market? With the current monopoly license set to expire in 2027, industry stakeholders are closely examining the new coalition agreement for signs of potential liberalization.

Political Context: A New Coalition After Months of Uncertainty

Austria’s political landscape has been in flux since the October elections, with the conservative People’s Party (ÖVP) failing twice to form a coalition before finally reaching an agreement with the Social Democrats (SPÖ) and the Liberal Party (NEOS). The three-party coalition published its agreement on February 27 and was sworn in on March 2, operating under the motto “Do the right thing for Austria.“

For the gambling industry, the coalition pact contains some intriguing language about the “further development of the gambling monopoly” and plans to crack down on illegal operators. However, the exact meaning of this phrasing remains open to interpretation.

Austria’s Current Gambling Framework

Austria’s gambling market is notably fragmented:

• Online casino and lottery products: Operated under a monopoly license held by Win2day, a subsidiary of Austrian Casinos
• Sports betting: Regulated separately by each of Austria’s nine federal states
• Current license situation: The monopoly license expires in 2027 after a 15-year term
• Market reality: Despite the monopoly, international operators like Tipico, Interwetten, and Bwin actively serve Austrian customers under Malta licenses

Competing Interpretations of the Coalition Agreement

Industry stakeholders are divided on how to interpret the coalition’s gambling plans:

The Optimistic View

The Austrian Betting and Gaming Association (OVWG) believes the door to liberalization remains open. OVWG Vice President Simon Priglinger-Simader suggests the vague wording in the agreement indicates that online gambling licensing was not fully negotiated during coalition talks due to time constraints.

“From our discussions with policymakers, we know that the issue of online gambling licenses had not yet been negotiated at the time the government was formed,” Priglinger-Simader stated. “There are many key decision-makers in the new government who advocate for a modernization of the online gambling market in line with European standards.”

Supporting this view is the fact that two of the three coalition parties—the ÖVP and NEOS—are generally supportive of market reform, while only the SPÖ is believed to oppose liberalization.

The Skeptical Perspective

Dr. Arthur Stadler, founding partner at Vienna-based law firm Stadler Völkel, sees strong parallels between this coalition agreement and previous governments’ approaches to gambling.

“While the liberalization of online gambling in Austria is long overdue, the coalition agreement reads in many parts very similar to the previous government’s coalition paper,” Stadler noted. “Take, for example, the development of the monopoly framework, reinforced by IP blocking and payment blocking—this closely mirrors the approach taken over the past decade under the Grand Coalition of the ÖVP and SPÖ.“

Signs Pointing to Potential Liberalization

Despite the ambiguity, several elements in the coalition agreement suggest liberalization remains possible:

1. Frequent use of “further development”: The term appears approximately 130 times in the document, potentially indicating that contentious issues like gambling reform have been deferred for later discussion.
2. New player protection measures: The agreement outlines plans for “an operator-independent player ID card with various functionalities to ensure player protection,” including a self-exclusion register—infrastructure that would only make sense in a multi-operator environment.
3. Independent gambling authority: Perhaps most significantly, the coalition plans to establish an independent regulatory body to take over licensing and oversight functions from the Ministry of Finance, which currently faces conflicts of interest as it:

• Acts as the industry regulator
• Collects gambling taxes
• Holds a 33.3% ownership stake in the monopoly operator

The plan to “debundle” these roles and create an independent authority adhering to “international standards” could signal preparation for a more competitive market structure.

Financial Considerations

The coalition has already moved to increase the betting levy from 2% to 5% effective April 1, 2025—a 150% increase that will impact operator margins. This tax hike is part of the government’s plan to raise €50 million from gambling in 2025, rising to an ambitious €220 million by 2030.

Industry observers, including the OVWG, believe the 2030 revenue target would be unattainable through tax increases alone, suggesting that market liberalization may be necessary to achieve these financial goals.

Tight Timeline for Reform

With current casino licenses expiring in September 2027, the government faces a compressed timeline:

• The new gambling authority would need to be established within the next year
• Licensing details would need to be published shortly thereafter
• Any legal challenges could further delay implementation

Dr. Stadler warns that the next tender process will likely be more competitive and contentious than ever, with operators potentially forming coalitions to meet regulatory requirements and unsuccessful candidates likely to mount legal challenges.