Austria’s iGaming Liberalisation Draft Signals End of Monopoly but Demands High Costs and Strict Controls

The long-standing online gambling monopoly in Austria is on the verge of ending. A draft gambling law leaked from the Finance Ministry this week outlines plans to introduce multiple licences through a tender process, replacing the single licence currently held by Austrian Lotteries’ Win2Day brand, which expires in 2027.

The Finance Ministry explained that the monopoly model had become “hard to enforce” in the digital age, particularly for cross-border online activity. The draft law explains the aim of this change is to create an attractive online gambling offering that ensures a high level of channelisation into the legal market and the highest possible standards of player protection. With pressure to reduce the national budget deficit, the reform also carries clear fiscal implications.

As someone who has spent decades observing the evolution of regulated gaming markets, I see this as a structural shift that operators must evaluate carefully. The move from monopoly to licensed competition creates both opportunity and substantial hurdles.

Eligibility and the Price of Entry

The draft opens the door to gambling companies headquartered in the EU, EEA or Austria, including current licence-holders from other jurisdictions. This explicitly includes grey market operators active in the region on Malta or Gibraltar licences.

There is a significant condition. Operators already active in the market must prove they are “fit and proper” by clearing all backdated taxes due in Austria and settling player claims rulings. In short, they will need to buy their way into the legal market.

Oliver Peschel, a players’ lawyer, told Der Standard that player claims payouts alone amount to “a few hundred million euros,” with thousands of players currently “waiting for the money they are legally entitled to.” In addition, applicants must fully disclose and settle any outstanding tax liabilities that are not yet statute-barred.

Once those obligations are met, operators face one of the highest tax rates on the continent. Following the latest hikes in 2025, online gambling will be taxed at 45% of GGR.

Arthur Stadler, a Vienna-based gambling lawyer, tells iGB that operators would also be required to hold a minimum share capital of €10 million. This financial threshold could drive consolidation and limit participation to major operators able to absorb these burdens.

Extensive Player Protection Framework

Social responsibility forms a central pillar of the proposed reform. Many safeguards already in place for Austria’s land-based market will extend to the online sphere, creating one of the most tightly regulated gambling markets in Europe.

The measures include a central self-exclusion register linked to Austrian digital ID systems. Deposit limits are set at €250 per week for under-26s and €1,680 per week for over-26s, although the latter can be lifted with proof of sufficient liquidity.

Maximum stakes are capped at €2 per spin, with maximum winnings of €2,000. Jackpots are banned. There are also restricted speed-of-play rules and mandatory 15-minute “cooling-off” periods after every 90 minutes of play, alongside ongoing monitoring of player behaviour and addiction risk.

These requirements reflect a clear regulatory priority on harm minimisation. For operators, they translate into meaningful compliance costs and product limitations that must be built into any market entry model.

Channelisation Goals and Black Market Risks

The Finance Ministry hopes the reforms will boost channelisation from 45% to 80%. The industry believes the real channelisation rate is much lower.

To achieve this, the plan combines market opening with a multi-pronged crackdown on illegal operators, including ISP blocking, payment blocking, blacklists, test purchases and greater enforcement powers for the regulator.

Arthur Stadler warns of a material risk. He states that the framework as it currently stands could result in a “commercially rather unattractive business model.”

He explains: “The real danger is that the business model simply does not pencil out for operators, and that the industry does not embrace the new licences at all – because an operator holding an Austrian licence would, in practice, be unable to compete against the black market.” The macroeconomic consequence, he adds, would be that the channelling rate the legislator is aiming for is never achieved.

This counterargument highlights a core tension. High taxes, strict product rules and upfront capital demands may undermine the very channelisation objectives the reform seeks. Operators will need to model whether the licensed environment can generate sustainable returns against unregulated competitors.

Implications for Land-Based Gaming and Regulatory Oversight

The draft also addresses land-based casinos, currently a monopoly operated by Casinos Austria across two packages of six venues each. A maximum of twelve concessions could be granted in total, potentially opening the market to smaller operators running one or two venues.

The city package expires in 2027, so more detail is expected next year. In parallel, the land-based sector faces new restrictions, including reduced machine numbers, the eventual phaseout of VLTs and additional player protection measures.

On oversight, the draft confirms an independent gambling authority will be established no later than 2030. Until then, the Finance Ministry will remain in charge. This interim arrangement continues a relationship between the state and incumbent operators that has drawn criticism in the past.

The Bottom Line

Austria’s draft law marks an inflection point after decades of monopoly control. It promises multiple licences, uncapped for online gaming, but pairs that openness with 45% GGR tax, €10 million minimum capital, extensive player protection rules and requirements to settle back taxes plus player claims that could reach hundreds of millions of euros. The government’s channelisation target of 80% is ambitious, yet Arthur Stadler’s warning about uncompetitive economics cannot be ignored. Operators evaluating entry must weigh these realities against the potential fiscal windfall and regulatory shift. The coming months of negotiations, public consultation and EU notification will clarify the final shape. Client-partners should track the tender timeline closely, as extensions of existing licences could push a fully open market toward 2029. This is a market where disciplined modelling of costs, compliance and competitive positioning will separate viable strategies from costly missteps.