Austria nears gambling reform deal as coalition debates cooling-off period for operators

Austria’s coalition government is close to finalising a major overhaul of its gambling legislation, with negotiators from the Austrian People's Party (ÖVP), Social Democratic Party of Austria (SPÖ), and NEOS expected to resolve remaining issues this week.

The reform, which is expected to be finalized before Austria’s summer parliamentary recess, would end one of Europe’s last remaining online gambling monopolies after the current licence expires in 2027. A leaked draft from the Ministry of Finance suggested a fully open licensing system could replace the current single-operator model.

While the coalition has broadly agreed on liberalising the market, key disputes remain over who will be allowed to enter and under what conditions.

One of the most contentious proposals is a so-called “cooling-off” period targeting operators who previously breached Austrian gambling laws, reports iGB. The measure, reportedly backed by the SPÖ-led finance ministry, would bar certain unlicensed or non-compliant operators from applying for licences for up to five years.

The exclusion period could range from 24 to 36 months and would mainly affect EU-based operators previously active in Austria without local authorisation, Felix Geyer, an Austrian public affairs consultant, told iGB.

Casinos Austria, which currently holds the country’s sole online gaming licence through its lottery subsidiary, has backed the idea of a transition period.

Spokesperson Patrick Minar argued that companies previously operating illegally should not immediately gain market access. “An initial cooling-off phase of three to five years would be conceivable,” he told the Krone newspaper.

Land-based operator Novomatic, through its Admiral subsidiary, has also supported a structured transition, with CEO Monika Racek stressing the importance of fair treatment for regulated operators. “These operators must not be discriminated against by the legislator treating them in the same way as everyone else.”

However, the Austrian Betting and Gaming Association (OWVG) has strongly opposed the proposal, warning it could undermine the entire reform. “A cooling-off period would be the reform killer,” OWVG president Simon Priglinger-Simader said, arguing it would push players back to the black market and reduce expected tax revenues.

“With cooling off, the opposite happens: tax-paying operators must leave, the black-market jumps in, existing revenues collapse and already budgeted additional revenues fail to materialise,” he added.

Beyond market entry rules, several technical provisions remain under negotiation. One key issue is proposed betting limits. Draft discussions have included a maximum €2 stake and €2,000 payout cap per game—measures critics say would make regulated online gaming commercially unviable.

There is also disagreement over the number of land-based casino licences, with proposals ranging from 12 to 15 concessions. The finance ministry’s draft suggested “up to 12,” but coalition partners are reportedly pushing for expansion.

Lottery licensing fees are another sticking point. While the lottery monopoly is expected to remain in place, proposed fees of €20 million per licence could be doubled to €40 million under NEOS proposals.

Despite unresolved details, lawmakers are converging on a timeline that would see the bill finalised before parliament’s July recess. The legislation would then enter a three-month EU notification process over the summer, paving the way for implementation in autumn.

If approved, Austria’s new framework would likely trigger the start of licensing tenders ahead of the expiry of the current 15-year monopoly at the end of 2027, marking a major restructuring of the country’s gambling market.