AUSTRIA TO LIBERALIZE ONLINE GAMBLING MARKET

Austria is set to pass major updates to its Gambling Act as early as December this year. Chief among the changes is the introduction of a new, uncapped licensing system for online gambling providers. The new Bill also introduces specific player protection requirements like age limits and stake limits, a cross-operator exclusion register, mandatory self-limitation tools, and cooldown periods. Also in the works are stronger enforcement tools like payment and IP blocking, test plays, and public warnings. The Bill additionally lays the groundwork for a new regulatory authority, although the details of that authority have been left to further legislation; for now, the Austrian Tax Office is designated as the interim Supervisory Authority.

On August 4, 2026, the Bill was presented to the EU for a three-month standstill period for Technical Regulation Information System (TRIS) review. While it's not out of the question that Member States may comment and extend the process (Malta, for example, may have an interest in delaying), the Bill has already been presented to Austria's National Council, and final amendments are expected to be voted on in December 2026. This means that prospective entrants into Austria's online gambling market will need to be prepared, as licensing requirements will be exacting, and the Bill introduces a penalty for unlicensed operators who continue to offer their services beyond December 31, 2026 – a "cooling-off period" of 18 months applies to anyone who offers unlicensed gambling, delaying receipt any potential license.

Currently, the right to offer online gambling is tied up in Austria's only lottery license, meaning the license holder, Österreichische Lotterien GmbH, is the sole operator permitted to offer online gambling. The new system will instead allow an unlimited number of operators to apply for an receive a license on a rolling basis, dramatically liberalising Austria's gambling regime. The lotteries will remain subject to a single license, which under the new Bill is extended until December 31, 2028. Similarly, six of the twelve extant casino licenses will also expire at the end of 2028, rather than in 2027 as was earlier the case. Applicants for a new online gambling license will need to meet capital requirements, reliability and suitability checks, and carefully adhere to licensing procedures. Those that have been active as unlicensed providers in the Austrian market will also need to settle any outstanding Austrian judgments against them as well as any back taxes owed, in addition to switching off operations by December 31.

While the reforms' headline is the liberalization of Austria's online gambling market, there is more still in the "mystery box." The draft Bill contains numerous references to a Gambling Supervisory Authority, but these remain, at the moment, empty references. The government stands by its plans to establish this authority, but it has put off actually creating a new entity for a later date. Planned rules on advertising also remain to be fleshed out – and their content may dictate how attractive Austria is to new market players. Finally, licensing conditions for Austria's land-based casinos have not been published; Austria's Ministry of Finance is reportedly still in the drafting process.

Online gambling operators should pay close attention to the situation in Austria, particularly after the TRIS period ends in November. As soon as the Bill is voted on (and practically speaking, likely earlier), operators will need to have a plan if they want to ensure smooth market entry. Particularly important is the December 31 deadline – any operators who continue to offer unlicensed online gambling in Austria will face an 18-month suspension before they can receive a license, putting them behind the curve in an exciting new market. Well-prepared operators will have examined the situation so that they can make an informed decision and, if necessary, will have assessed their player claims and tax liability so that they can comply with licensing procedures.

By: STADLER PARTNER