Austria’s gambling industry faces unprecedented challenges as proposed tax hikes threaten established operators, while regulatory pressures push the country toward modernizing its outdated monopoly system. Industry leaders warn of closures, job losses, and market instability as the government prioritizes revenue generation over sector sustainability.
Sudden Tax Acceleration Catches Industry Off-Guard
Austria’s gambling sector is bracing for a financial shock as betting taxes are set to jump from 2% to 5% beginning April 1, 2025. This sudden implementation represents a departure from previously announced plans, which had outlined a gradual increase scheduled to take effect in January 2026. The change comes as part of a provisional 2025 budget approved by Austria’s three-party coalition government led by Andreas Hanger (ÖVP), Kai Jan Krainer (SPÖ), and Karin Doppelbauer (NEOS).
Beyond the imminent betting tax hike, discussions continue around an additional 10% gambling tax. These combined measures aim to generate approximately €150 million ($162 million) in fresh revenue for Austria’s national budget. The accelerated timeline has caught many operators unprepared, with industry groups arguing that businesses need more time to adapt to such significant changes.
Casinos Austria Predicts Substantial Operational Impact
For Casinos Austria, the country’s dominant gambling operator, these tax changes represent an existential threat. General Director Erwin van Lambaart has issued stark warnings about the potential consequences, indicating that the financial burden could force the closure of 30–40% of the company’s properties. With 12 current locations across Austria, this would mean shuttering 4–5 gambling venues nationwide.
Van Lambaart stated:
Our group of companies will be strongly attacked if all this is implemented. We will be losing so much money that the continuity of the company would potentially be at risk. If an increase in gambling tax of more than ten percent comes, there will no longer be some smaller businesses. There will potentially be a few fewer casinos in the country.
The severity of van Lambaart’s statement underscores the financial precarity that even established gambling operations face when confronted with rapid tax increases. Regional properties typically operate on tighter margins than flagship locations, making them particularly vulnerable to increased operational costs.
Sports Betting Association Voices Industry-Wide Concerns
The Austrian Sports Betting Association (OSWV) has joined the chorus of concerned voices, highlighting broader impacts beyond just casino operations. The organization warns that the rapid implementation could trigger the termination of numerous media partnerships and push smaller betting providers toward bankruptcy.
According to the OSWV, these disruptions would extend beyond the gambling sector itself: “The sports industry itself will be affected first of all if existing cooperations in top-level sport, but above all in popular sport, have to be reduced as a result without any transition period.” This interconnection between sports betting operators and sports organizations demonstrates how regulatory changes in gambling can have cascading effects through related industries.
The association has called for the federal government to provide a “sufficiently long transition period” that would allow companies to adjust their business models and prepare for the increased tax burden. They’ve also requested more direct involvement in the regulatory process, suggesting “a public hearing, a round table or, best of all, a working group that also involves representatives of the licensed industry.”
Austria’s Monopoly System Under Growing Scrutiny
The tax controversy emerges against a backdrop of increasing pressure on Austria’s unique gambling regulatory framework. Unlike most European countries, Austria maintains a monopoly system where Casinos Austria holds exclusive rights to offer casino gaming through a 15-year license set to expire on September 30, 2027.
This approach has become increasingly anomalous within the European context. Austria now stands as one of just two EU countries (alongside Poland) that maintain a monopoly system for online casino gaming, while 21 member states have adopted multi-licensing frameworks. This regulatory isolation has drawn criticism from industry advocates who argue that a competitive licensing system would better serve both business and consumer interests.
Simon Priglinger-Simader, vice president of the Austrian Betting and Gaming Association (OVWG), has indicated there’s now genuine potential for reform:
We are in a very interesting time at the moment, because it’s the first time for five or more years that politicians have been open to talk to us and are considering a reform and move away from the monopoly system.
European Gaming Association Pushes for Modernization
The European Gaming and Betting Association (EGBA) has been particularly vocal in advocating for Austria to modernize its gambling regulation. The organization has proposed a comprehensive four-point reform plan encompassing licensing, oversight, consumer protection, and taxation.
EGBA has highlighted significant risks under the current monopoly system, noting that thousands of Austrian players are turning to unregulated offshore gambling sites that lack essential consumer protections. This migration to black market operators undermines both regulatory oversight and tax revenue collection.
According to EGBA’s analysis, transitioning to a multi-licensing framework could yield over €1 billion ($1.04 billion) in additional tax revenue for Austria by 2030. This financial projection presents an alternative approach to increasing government revenue compared to simply raising taxes within the existing monopoly structure.
European Models Demonstrate Successful Alternatives
Austria doesn’t need to look far for examples of successful regulatory transitions. Denmark has become a model case study after adopting a multi-licensing framework in 2012. Prior to reform, Denmark’s channelization rate for regulated online gambling stood at 72%—meaning over a quarter of gambling activity occurred in unregulated markets. By 2023, that rate had improved to 90%, demonstrating significantly better market control.
Other European nations have followed similar paths. Finland has recently committed to ending its monopoly and opening its market by 2026. Sweden transitioned from a state monopoly to a licensed market in 2019, while the Netherlands implemented its Remote Gambling Act in 2021 to license private operators.
Political Dynamics Will Shape Reform Timeline
The future of Austria’s gambling regulation hinges significantly on the country’s evolving political landscape. Following the September 29, 2024 elections, the Freedom Party (FPÖ) secured the largest share of votes and is negotiating a coalition agreement with the People’s Party (ÖVP). The regulatory approach adopted by this new government will determine whether Austria pursues monopoly continuation or market liberalization.
Dr. Arthur Stadler, founding partner at law firm Stadler Völkel, observed that regardless of political alignment, Austria’s government will be seeking ways to increase tax revenues, making gambling reform a potential avenue.
The time is now to be creative and responsible when allowing such a shift for the national online casino market – Dr. Arthur Stadler
If Austria intends to transition toward an open licensing model, preparations would need to begin in 2025 to align with the expiration of Casinos Austria’s exclusive license in 2027. Industry observers anticipate that the tender process for new licenses could open this year, potentially establishing the foundation for a more competitive gambling market.
Regulatory Contrast With Austria’s Crypto Approach
Austria’s conservative approach to gambling regulation contrasts with its more progressive stance on other financial technologies. The country has established a clear regulatory framework for cryptocurrency businesses, requiring registration as virtual currency service providers with the Financial Markets Authority (FMA).
Since January 2020, when Austria implemented the 5th European Money Laundering Directive, crypto operations have operated under a defined legal framework. This regulatory clarity has helped position Austria as an attractive jurisdiction for FinTech development, with companies like BitPanda establishing significant operations there.
This contrast in regulatory approaches highlights Austria’s capacity for financial innovation when political will exists. The gambling sector now awaits similar regulatory evolution as the country balances revenue needs with market modernization.
