Austria’s gambling industry is at a crossroads, with increasing calls to overhaul its outdated monopoly system. Despite the successful history of multi-licensing frameworks in 21 countries, Austria still finds itself in the same league as Poland, having retained its monopoly.

Austria’s monopoly system grants exclusive rights to a single operator for online casino gaming. While this approach may seem straightforward, it is increasingly out of sync with broader European trends. The monopoly model has several drawbacks, including a lack of consumer protection, limited regulatory oversight, and a loss of potential tax revenue.

EGBA’s advocacy for reform

The European Gaming and Betting Association (EGBA) has been vocal about the need for change. According to the EGBA, Austria’s monopoly system fails to address the realities of today’s gambling landscape. They recommend adopting a multi-licensing framework to channel gambling activity into regulated markets, enhance player protection measures, and generate significant tax revenue.

Austria could look to other countries, such as Denmark, which has seen significant growth in its regulated online gambling market since adopting a multi-licensing model in 2012, achieving a channelisation rate of 90 percent by 2023. Similarly, Finland plans to end its monopoly system by 2026, recognising the benefits of reform.

Embracing a multi-licensing regime could greatly benefit Austria by providing enhanced consumer protections through safer, regulated platforms, increasing regulatory oversight with multiple operators ensuring better compliance, and boosting tax revenue, with the EGBA estimating an additional €1 billion by 2030.

Maarten Haijer, Secretary General of the EGBA, summed up the situation by stating, “The evidence from across Europe is clear and compelling: multi-licensing works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue. With government negotiations underway, Austria has a golden opportunity to modernise its approach to online casino regulation and benefit from the proven regulatory approaches elsewhere. The time to act is now.”

Challenges in transition

Transitioning to a multi-licensing system faces challenges, including resistance from vested interests benefiting from the current system and the need for political consensus among policymakers. Online gambling options seem very attractive to Austrian players, but they operate outside the ambit of national laws, putting players at risk of no guarantees for protection, fraud, or unfair practices, and immunity from Austrian regulatory authorities.

At its core, gambling regulation should prioritise the consumer, and a multi-licensing framework ensures responsible gambling practices, transparency and fairness, and reduced exposure to unregulated markets. If Austria embraces reform, it could become a leader in regulated online gambling. A well-planned transition will be key to minimising disruptions and maximising benefits.

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