Austrian gambling sector left in disarray: Fresh administration maintains contentious monopoly policy

Title: Austria's Gambling Monopoly: No Reform in Sight for the New Three-Party Coalition

Let's dive into the world of gambling in Austria, shall we? After much anticipation, the new government coalition of ÖVP, SPÖ, and NEOS has made its move – and it ain't what the experts were hoping for. Instead of opening up the gambling market to private providers, this trio has decided to stick with the ol' gambling monopoly.

The Government Stays Firm: No Market Reform

You see, for time immemorial, Experts have been yakkin' about the need for a reform of the Austrian gambling market. Why, you ask? Well, they've been pointin' to successful reforms in other European countries that opened their markets to private providers.

But it looks like the Austrian government ain't budging. With the publication of the coalition agreement, it seems darn certain that the gambling monopoly will remain, as reported by Der Standard.

Unsurprising Moves: Tax Increases and a Possible Skill-to-Chance Shift

The Austrian government is also ponderin' a review of the status of sports betting, which is currently deemed a game of skill, not chance. Regardless of a possible reclassification, the betting tax will rise from two to five percent. The general gambling tax for stationary gambling will also climb by around ten percent, which has already sent licensed gambling providers into an uproar.

The Tax Hike: Industry's Red Flag

The planned hike in taxes for the stationary sector has industry representatives sweatin' bullets. Casinos Austria AG, along with the Austrian Lotteries Group, have issued a red alert, warnin' of significant financial burdens and potential job losses.

In 2023, the company forked over 724 million euros in taxes and duties, makin' a profit of just under 183 million euros. A drastic increase in taxes would saddle 'em with annual additional costs of over 100 million euros.

Tougher Action Against Illegals: A New Authority on the Horizon

The governing parties have also vowed to take a firm stance against the illegal market. To Do this, they plan on creatin' an authority similar to the Joint Gambling Authority of the States (GGL) in Germany. At the moment, the responsibilities lie with the Federal Ministry of Finance (BMF), which isn't quite cut out to be a gambling supervisory authority.

The success of these measures against illegal providers will largely depend on the European Court of Justice (ECJ). Recently, a Maltese court made a landmark ruling, refusin' to accept Austrian judgments against Maltese gambling providers.

The ECJ now has to decide if Malta's provider-friendly laws align with EU law and if Austria's gambling monopoly undermines the freedom to provide services within the EU. If the ECJ deems Austria's monopoly to be in violation of EU law, the situation could change for many providers who are Operatin' without a license on the Austrian market. However, it's still far too early to make such predictions.

Sources:

Gaming Lawyer
Statista
W2D/Pragmatic Play
Digital Market GmbH
Casinos Austria AG
Despite experts advocating for reforms in the Austrian gambling industry, modeled on successful European examples, the new coalition government of ÖVP, SPÖ, and NEOS announced no plans to liberalize the market and maintain the gambling monopoly, as reported by Der Standard.
The government is considering a review of the sports betting status, which is currently categorized as a game of skill, and may increase taxes for both sports betting and stationary gambling, prompting major concerns among licensed gambling providers.
To counteract illegal providers, the Austrian government plans to establish an authority similar to the Joint Gambling Authority of the States (GGL) in Germany, with the success of these measures depending on the European Court of Justice's (ECJ) interpretation of Austrian gambling policies within the EU.
In a recent Maltese court case, the ECJ will decide whether Malta's provider-friendly laws align with EU law and if Austria's gambling monopoly encroaches on the freedom to provide services, potentially impacting many providers who have been operating without a license in the Austrian market.