Austria is preparing to replace its long-standing gambling monopoly with a competitive licensing system, following a draft law seen by NEXT.io.
The draft legislation would end Austrian Lotteries’ Win2Day online monopoly, opening the market to multiple licensed operators for the first time.
A recent study commissioned by Tipico found that 71% of the country’s GGR, approximately €500 million, was flowing to the black market.
The draft law explicitly states that its goals include increasing channelisation to the white market and strengthening player protection levels.
However, industry stakeholders are expected to push back on several provisions they view as overly restrictive and potentially counterproductive.
Areas of concern include a €2 per spin stake limit, a €2,000 maximum win, strict deposit limits, and mandatory cooling-off periods after extended play sessions.
The Austrian Association for Betting and Gambling (OVWG) is understood to be writing to stakeholders arguing these provisions should be rethought, including allowing higher deposit limits for customers who can prove affordability.
Germany’s liberalised but persistently low-channelisation market is expected to feature heavily in lobbying conversations as a cautionary example.
Thousands of pending lawsuits from players suing Malta-licensed operators for grey market activity must also be resolved before major operators could consider re-entering the Austrian market.
Notably, some plaintiff lawyers have argued that overly restrictive conditions would undermine channelling objectives by deterring quality operators and players alike.
Christian Rapani, attorney with Austrian law firm Rapani Rechtsanwälte, told NEXT.io: “That observation is likely to carry weight with policymakers, for whom channelling is a stated primary objective.”
Rapani added: “We would therefore expect the final framework to reflect input from regulators, industry participants, and legal practitioners, with a view to finding conditions that are genuinely effective rather than merely stringent on paper.”
Passage of the law requires agreement from all three coalition parties: the centre-right Austrian People’s Party (ÖVP), the centre-left Social Democratic Party (SPÖ), and the liberal NEOS.
Rapani noted: “The detailed provisions, particularly around limits, the exclusion database, and technical requirements, will almost certainly be subject to further discussion with industry stakeholders and the political parties before the final text is settled.”
The best-case timeline would see ministerial consultation beginning in June, a government bill in July, and EU notification under the TRIS procedure running from August through October.
Under that scenario, the law could enter force as early as November or December this year, partly driven by EU infringement proceedings over Austria’s budget deficit.
Licences for operators could potentially become available as soon as 2029, based on the projected implementation schedule.
A Ministry of Finance parliamentary inquiry from two years ago found 29 operators already paying taxes in Austria, with one market expert estimating around 30 to 35 licence applications should be expected.
Thomas Forstner, OVWG secretary general, said: “After 10 years of working on this, we are of course happy to see the idea of an organised system come to fruition. Our next step is to get the right conditions in place for the providers.”
Forstner added: “Austria is a big market, and I think it is a very good market. A lot of companies are interested in entering Austria, and if they want details on how to do it, we will be the first port of call.”
