EGBA Calls for Austria to Abandon Gambling Monopoly
The European Gaming and Betting Association urges Austria to transition to a multi-licensing system for regulating online casinos. This statement has gained relevance amid the growing rise of illegal operators and the lack of proper protection for players. In its report, EGBA pointed out that the current monopoly system in Austria not only hinders industry development but also leads to missed tax revenues.
What is the Gambling Monopoly in Austria?
Austrians, along with the Polish, remain among the few countries in the European Union that still operate under an outdated gambling monopoly system. This model limits competition and fails to effectively control the growth of illegal operators, which jeopardizes player safety. As a result, thousands of Austrians gamble on unregulated websites without access to protective measures.
Why is it Important to Transition to Multi-Licensing?
Transitioning to multi-licensing would not only improve player protection but also significantly increase tax revenues for Austria. According to EGBA’s estimates, such a reform could bring up to €1 billion in additional tax revenue by 2030. This would be possible by legalizing the activities of online casinos that currently operate outside the legal framework.
Benefits of a Multi-Licensing System
- Improved Player Protection: Shifting to a regulated gambling framework will ensure mandatory safety measures such as self-exclusion and other tools for safe gambling, greatly enhancing player protection.
- Better Oversight and Control: A multi-licensing model will give Austrian authorities more effective control over gambling activities, helping to combat illegal operators and ensuring the enforcement of safety standards.
- Economic Benefits: The multi-licensing system could significantly increase tax revenue, which in turn would strengthen the country’s economy.
Examples of Success in Other Countries
Countries such as Denmark and Sweden have demonstrated the success of such reforms. In Denmark, after the introduction of multi-licensing in 2012, the share of legal online betting increased from 72% to 90% by 2023, which contributed to better player protection and increased tax revenue.
How to Change the Situation?
In order for Austria to modernize its gambling system, several key steps need to be taken:
- Create a Competitive Licensing System: Replace the state monopoly with an open multi-licensing model that ensures healthy competition and high safety standards.
- Establish Independent Oversight: Create a new regulatory structure that will have the authority to control operators and ensure compliance with safety regulations.
- Strengthen Consumer Protection: Implement best practices for player protection in Austria’s legislation, including mandatory safety tools and self-exclusion systems.
- Develop a Smart Tax Policy: Establish a tax rate that ensures stable tax revenue and competitive conditions for licensed operators.
Maarten Haijer, the Secretary General of EGBA, emphasizes the urgency of reform: “The evidence from European countries is clear: multi-licensing works. It brings gambling into the regulated sphere, protects consumers, and generates significant tax revenue. With the ongoing government negotiations, Austria has a unique opportunity to modernize its regulation and adopt successful proven practices.”