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Could Austria find a way to liberalise online gambling after all?
Imogen Goodman takes a closer look at the Austrian government’s new coalition agreement and whether it could lead to online gambling liberalisation. Some stakeholders are optimistic gambling reform could be coming, while others see this government as having similar views on gambling as previous administrations.
Since Austria held its elections last year in October, the country has been on a political roller coaster ride with endless twists and turns. Over a gruelling five-month period, the conservative People’s Party (ÖVP) held talks with numerous opposition parties but twice failed to hammer out a coalition deal. This political uncertainty could impact the sector’s ambitions to liberalise online gambling.
In February, after stalled negotiations, the ÖVP returned to an agreement with the Social Democrats (SPÖ) and the Liberal Party (NEOS), paving the way for a new government that seeks to address financial deficits while potentially reforming gambling laws.
Urgent questions for the gambling industry
The coalition agreement outlines a vision for structural reforms in the gambling sector, indicating a “further development of the gambling monopoly” and a crackdown on illegal operators. With the current monopoly set to expire in 2027, the industry is eager for clarity on future licensing models.
Will Austria keep its monopoly, or liberalise gambling?
The interpretation of the term “further development of the gambling monopoly” varies, leaving the future uncertain. The Austrian Betting and Gaming Association (OVWG) remains hopeful for reform, but scepticism persists due to the coalition’s historical struggles with gambling policy.
Glimpses of hope for gambling liberalisation
There are hints of potential liberalisation, notably the frequent use of “further development” in the coalition pact. Plans for player protection measures and establishing an independent gambling authority also suggest a movement towards a more modernised gaming market.
Neutering the ministry of finance
The proposed separation of roles within the finance ministry may reduce potential conflicts of interest and promote a more neutral regulatory framework. This shift is seen as pivotal for upcoming tender proceedings for operator licenses.
Betting levy in Austria to increase dramatically?
The coalition plans to raise the betting levy from 2% to 5% starting 1 April, significantly increasing financial burdens on operators. This tax hike raises questions about market viability and the necessity for further liberalisation to achieve ambitious revenue targets.
The clock is ticking on market liberalisation
With current licences expiring in 2027, the government must move swiftly to establish its new regulatory authority and clarify licensing processes. The outcome of this push for reform remains uncertain, as lobbying efforts intensify ahead of critical deadlines.
Key Points
- The recent coalition agreement lays the groundwork for potential reforms in Austria’s online gambling sector.
- Political uncertainties have left many questions regarding liberalisation unresolved, especially with monopolistic restrictions still in place.
- Signs of reform may be evident in proposals for an independent gambling authority and player protection measures.
- The increase in the betting levy could pressure operators, highlighting the need for structural changes to the market.
- With deadlines looming, the government faces significant challenges in implementing its plans by 2027.
Why should I read this?
This article provides a detailed analysis of the current political climate surrounding online gambling in Austria, outlining the potential for reform and the implications for industry stakeholders. It is essential reading for anyone interested in the future of gambling regulation in Europe.
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