Austria Advances Gambling Reform Draft to EU Review

Austria Submits Draft Gambling Law to EU Commission – Three Month Review Marks Key Step Toward Open Licensing

Key Takeaways

• Austria’s Ministry of Finance has submitted a comprehensive gambling reform draft to the European Commission, triggering a mandatory three month standstill period.
• The proposal introduces 13 casino licences, a national self exclusion register and new deposit limits, including stricter limits for players aged 18 to 26.
• Online operators currently serving Austria illegally must cease operations by 1 January 2027 to qualify immediately for a licence.
• Enforcement tools such as payment blocking, blacklisting and network blocking are planned to restrict unlicensed operators.

Draft Law Sent to Brussels for Mandatory Review

Austria has formally advanced its proposed overhaul of national gambling regulations by submitting the draft legislation to the European Commission. The notification initiates a mandatory three month standstill period under EU procedures. During this time, the Commission can assess whether the draft raises concerns related to state aid or compliance with EU single market rules.

While the standstill period prevents the law from being formally enacted, Austria’s parliamentary process can continue in parallel. This step represents a procedural requirement for national legislation that may affect cross border services within the European Union.

The draft marks one of the most significant changes to Austria’s gambling framework in recent years. It focuses on tighter controls for online gambling, expanded player protection mechanisms and a revised licensing and supervisory structure.

National Self Exclusion Register and Mandatory Deposit Limits

A central element of the reform is the creation of a national exclusion register. The system would combine voluntary self exclusions and operator imposed bans across casino gaming, slot machines and online platforms. The objective is to prevent excluded individuals from bypassing restrictions by switching between operators or gambling verticals.

The proposal also introduces mandatory deposit limits for online gambling and slot machines. Lower limits would apply to young adults aged 18 to 26, reflecting a specific focus on this age group. In addition, the draft foresees lower maximum stakes and reduced game speeds for slot machines.

To address prolonged play, the legislation mandates a cooling off break after 90 continuous minutes of gambling. Operators would also be legally required to conduct analyses of the addiction potential of their products. These analyses are intended to support research and inform broader policy decisions related to gambling harm.

Open Licensing Model with Transitional Rules

The reform outlines a shift toward open licensing for online gambling operators. Transitional rules are included for companies currently offering services without an Austrian licence.

Operators that cease illegal operations by 1 January 2027 would be eligible to apply immediately for a licence once the new regime is in place. Those that fail to comply would face an enforced waiting period of 18 months. From 2030 onward, this waiting period would increase to 24 months.

Applicants would also be required to settle outstanding tax liabilities and unpaid claims affecting approximately 20,000 players. According to the draft, this provision aims to address historical enforcement gaps before new licences are granted.

If the legislative process proceeds as planned, the reformed market could open in October 2027.

Digital Supervision and Enforcement Measures

The draft includes the creation of a digital supervisory platform featuring a central, operator independent deposit limit system. This structure is designed to monitor compliance and ensure that limits apply consistently across licensed providers.

To restrict access to unlicensed operators, the government plans to use enforcement mechanisms such as payment blocking, blacklisting and network blocking. These measures are intended to prevent illegal operators from serving Austrian customers and to channel players toward licensed offerings.

The Austrian Betting and Gaming Association has expressed scepticism that the transitional framework will significantly increase channelisation to the state linked operator Win2Day or to legal land based operators. Instead, it has indicated that unlicensed providers could benefit if restrictions are not effectively implemented.

Allocation of 13 Casino Licences and Market Structure

Beyond online gambling, the draft sets a maximum of 13 casino licences. These licences may be allocated in packages rather than as individual concessions. Licensing authorities are instructed to avoid excessive competition and to ensure balanced geographical distribution of casinos.

Casinos Austria currently operates as the monopoly provider in the land based casino segment. Former Casinos Austria employee Niklas Sattler has argued that individual concessions would represent a fairer approach to opening the market. He has suggested that, instead of two packages of six licences, a structure of one package of six and one of seven could eventually be tendered. Such a model, he indicated, could allow a large competitor such as Merkur to enter while limiting opportunities for smaller operators.

Political analyst Felix Geyer has noted that Austria’s legislative processes can be slow. He indicated that licensing procedures are unlikely to begin before the law formally enters into force, raising questions about whether licences can be awarded within 12 months.

Our Assessment

Austria’s submission of its gambling reform draft to the European Commission marks a formal and necessary step toward restructuring both online and land based gambling. The proposal combines open licensing with stricter player protection rules, centralised supervision and defined enforcement tools against unlicensed operators. For operators and users, the timeline toward a potential market opening in October 2027 and the transitional requirements for currently unlicensed providers represent key regulatory milestones within the Austrian market.