Austria is on the verge of its most significant gambling reform in decades. Negotiations on a new Gambling Act are now entering their final phase ahead of a planned parliamentary vote in the summer.
The centre-right Austrian People’s Party (ÖVP), the centre-left Social Democratic Party (SPÖ), and the liberal NEOS should conclude discussions this week on legislation that will end Austria’s long-standing online casino monopoly and open the market to competition once the current licence expires in 2027.
The reform was triggered by the leak of a Ministry of Finance draft in May, which outlined plans to replace the single-licence system with a regulated multi-licence model. If passed, the law would dismantle one of Europe’s last remaining online gambling monopolies and fundamentally reshape the Austrian gaming sector.
Cooling-Off Period for Grey-Market Operators
One of the most divisive topics is whether operators that have conducted business in Austria without a proper licence should face a mandatory cooling-off period before being eligible for a license for the new regulated sector.
According to media reports and industry sources, the SPÖ-led Ministry of Finance seeks temporary exclusion for companies that violated Austrian gambling laws in the past five years. And reportedly has called for a ban between 24 and 36 months.
Supporters of the proposal argue that operators should not be immediately rewarded for years of unregulated activity. Casinos Austria, whose subsidiary Austrian Lotteries holds the current sole online licence, has strongly backed the measure.
Spokesperson Patrick Minar called it absurd for operators to transition seamlessly from illegal to licensed status, suggesting a cooling-off period of three to five years could be justified.
Novomatic subsidiary Admiral Casinos & Entertainment is also in favour of a transition phase. The company insisted that long-established regulated operators should not be treated equally with grey-market players.
However, industry groups warn that such exclusions could backfire. The Austrian Betting and Gaming Association has described the proposal as a potential “reform killer,” arguing that sidelining major operators would weaken market channelisation, reduce tax revenues, and create space for unlicensed offshore providers to thrive.
Stake Limits Emerge as Political Flashpoint
Another major sticking point is the government’s plan to sharply reduce stake and prize limits for online games. The latest draft reportedly lowers the maximum stake from €10 to €2 per game and caps winnings at €2,000, down from €10,000.
The SPÖ has promoted the cuts as essential player protection measures. Yet the proposals face broad opposition across the industry, including from land-based operators and many reform supporters.
Critics contend that slashing limits to one-fifth of current levels would render many regulated products uncompetitive, likely pushing players toward offshore operators.
Land-Based Casinos and Lottery Fees Still in Dispute
Negotiators are also still debating the future shape of the land-based casino sector. While the Ministry’s draft proposed a maximum of 12 casino concessions, which could be grouped into licence packages, both the ÖVP and NEOS are pushing for an increase to 15.
At the same time, lotteries are expected to remain under a monopoly. Discussions continue over the fee for the next concession, with the current proposal set at €20 million and NEOS advocating for a rise to €40 million.
Federal States Oppose‘Small Gambling’ Restrictions
The reform has also sparked resistance from Austria’s federal states over proposed changes to the “small gambling” sector, primarily slots regulated at the provincial level.
States are particularly alarmed by plans to slash stake and prize limits for gaming machines by 80%, reducing maximum stakes from €10 to €2 and winnings from €10,000 to €2,000.
These operations generate significant tax revenue for the provinces, with operators paying a 16.5% state surcharge that yields around €35 million annually nationwide. Lower Austria alone collects more than €14 million per year.
State leaders warn that overly restrictive rules could make legal operations unviable and drive players into the illegal market
“If legal offers are made practically impossible due to excessive restrictions, the illegals will win in the end,” shared Upper Austria Governor Thomas Stelzer.
Similar concerns have been raised by Styrian Governor Mario Kunasek and Salzburg Deputy Governor Marlene Svazek, who criticised the lack of proper consultation with the provinces and warned that tighter limits and shorter concession periods would erode state revenues while failing to protect players.
Agreement Expected Before Summer Recess
Despite the hurdles, momentum points toward a political compromise. The government aims to finalise the bill in time for parliament’s last plenary session before the summer recess in July. This would allow for the mandatory three-month EU notification period over the summer, with the law potentially entering into force in autumn.
Such a timeline would enable Austria to launch its first competitive online gambling licence tender well ahead of the current 15-year monopoly’s expiry at the end of 2027.
As talks reach their decisive phase, policymakers must strike a delicate balance: opening the market to competition while maintaining strong player protection, safeguarding tax revenues, and preventing migration to the black market.
