Austria Debates Entry Rules for Future iGaming Market

Austria’s planned overhaul of its online gambling sector has reached a critical phase, as political negotiators remain divided over whether operators that previously served Austrian players without a local licence should be granted immediate access to a future regulated market.

The debate comes as lawmakers continue discussions on reforms that would replace Austria’s long-standing online gambling monopoly. The current online licence, held by Austrian Lotteries, is due to expire in 2027, prompting efforts to establish a new regulatory framework before then.

One of the most contested elements of the proposed reforms is a potential cooling-off period for operators that were active in Austria without domestic authorisation. Under the proposal, companies found to have breached Austrian gambling regulations within the previous five years could face restrictions on obtaining a licence once the market opens.

Supporters of the measure argue that operators that ignored local licensing requirements should not gain immediate access to the regulated sector.

Casinos Austria, whose subsidiary Austrian Lotteries currently operates the country’s sole online licence, has publicly supported a transition period. The company maintains that allowing previously unauthorised operators to enter the market immediately would undermine the credibility of the new regulatory framework.

A similar position has been taken by Admiral, the Novomatic-owned casino operator, which argues that businesses that complied with Austrian regulations should not be placed on equal footing with companies that expanded their presence outside the legal system.

However, industry groups representing online gambling operators have voiced concerns about the proposal. The Austrian Betting and Gaming Association argues that excluding major grey-market operators could weaken channelisation efforts by discouraging players from migrating to the regulated market.

According to the association, customers may continue using unlicensed offshore platforms if their preferred brands are unable to secure licences when the market opens. Such an outcome could reduce both regulatory oversight and potential tax revenues.

The issue has also attracted attention from legal experts handling player compensation cases. Draft provisions suggest that operators seeking Austrian licences may be required to resolve outstanding player claims and tax liabilities linked to previous activity. Some observers believe a delayed market entry could reduce incentives for companies to settle those obligations quickly.

Beyond licensing eligibility, negotiators are also discussing a series of player protection measures. Among the proposals under consideration is a reduction of the maximum online casino stake from €10 to €2 per game, along with a cap on winnings of €2,000.

The proposal is understood to have support among Social Democratic representatives, who view the restrictions as important consumer protection measures. Industry stakeholders, however, have largely opposed the plan, arguing that strict limits could make regulated products less competitive and encourage players to seek alternatives through offshore websites.

Questions also remain regarding the structure of Austria’s future land-based casino licensing system. Earlier drafts referenced up to 12 casino concessions, although discussions continue over the final number and how licences would be allocated.

Meanwhile, the lottery sector is expected to remain under a monopoly model, though discussions continue regarding the cost of the next licence. Current proposals suggest a fee of around €20 million, while some political representatives have advocated for a higher amount.

Despite ongoing disagreements, officials are aiming to finalise the legislation before parliament’s summer recess in July. If the schedule remains on track, Austria could begin the European Union notification process during the summer, allowing the new framework to take effect later in the year.

The reforms would mark the most significant change to Austria’s gambling sector in decades and pave the way for a new licensing process ahead of the expiration of the current monopoly licence in 2027.