Austria: Overview of Regulations for the Growing Online Gambling Market

Austria has upheld regulations for its gambling sector for a long time aiming to maintain a fair balance between allowing controlled gaming activities and safeguarding player well-being. With the surge in gambling the nation has taken notable measures to strengthen its regulatory framework ensuring that all types of gambling whether online or offline adhere to stringent legal requirements. This piece offers an overview of the current regulations overseeing Austrias gambling industry highlighting the laws, licenses and possible risks, for both operators and players.

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Austria’s market overview

Austrias online betting industry is experiencing growth, fueled by the increasing use of mobile devices changing customer preferences and a well-regulated market. The convenience of platforms particularly appealing to younger individuals along with the popularity of live dealer games has contributed to the market’s expansion. 

With Austrias robust economy and secure framework, backing it up, the industry is forecasted to generate $683.90 million in 2024 with growth expected to reach $840.90 million by 2029. As the user base continues to grow, and revenue potential remains strong, Austrian igaming industry sector is poised for development.

Is online gambling legal in Austria?

While being legal, it’s strictly monitored and controlled by the government of Austria in order to ensure a safe iGaming environment. Players can only game on Austrian-based online gambling platforms. Even for Austrian companies, it is incredibly difficult to attain a license. 

Are there any rules and regulations regarding gambling in Austria?

Yes. The legislation governing gambling activities is the Austrian Gambling Act (GSpG) which oversees all types of gambling activities and places a strong emphasis on the protection of players and gambling systems. 

Gambling Legislation of Austria


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Here you will find essential and regulatory frameworks that govern gambling in Austria to keep it a safe environment for their gambling citizen.

Austrian Civil Code (ABGB):

Covers contracts, family matters, inheritance, and property. As for gambling, it helps determine how gambling contracts are enforced and how disputes are resolved.

E-Commerce Act:

This act governs online transactions, making sure that online gambling operations are transparent and secure. It sets standards for how online services should operate, including necessary information disclosure and consumer protection measures.

Unfair Competition Act (UWG):

Prevents unfair business practices. To protect customers from deceptive practices, this law prohibits misleading advertisements and marketing tactics.

Federal Gambling Act (GSpG):

Including lotteries, casinos, online gambling, and poker, this law constitutes a game of chance, outlines licensing requirements, and includes rules for the protection of the player and gaming responsibly.

State-level Sports Betting Laws:

Each of Austria’s nine federal states has its own rules regarding sports bettings, these laws cover how betting operations are licensed and regulated within each state, allowing for local control and adaptation to regional needs.

Capital Markets Anti-Money Laundering Act (FM-GWG):

This act imposes strict rules to prevent money laundering in gambling. Operators must verify customer identities, monitor transactions, and report any suspicious activity, ensuring compliance with EU standards.

Criminal Code (StGB):

Section 168 of this code specifically targets illegal gambling. It makes organizing or promoting unlicensed gambling activities a crime with penalties including fines and imprisonment to deter unauthorized operations.


Licenses and Regulations: Who Issues Them?

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Here is a breakdown of different authorities that oversee a variety of gambling types in both digital and land-based forms.

Casino Gaming 

Digital Form: Austrian Ministry of Finance (BMF) and the Austrian Tax Office.

Land-based Form:

  • BMF and the Austrian Tax Office.

  • Government authorities in the nine Austrian federal states (Bundesländer).

Poker

Digital and Land-based Forms: Austrian Ministry of Finance and the Austrian Tax Office.

General Betting & Sports Betting

Digital and Land-based Forms: Government authorities in the Bundesländer.

Fantasy Betting

Undefined by Austrian law

Lotteries

Digital and Land-based Forms: Austrian Ministry of Finance and the Austrian Tax Office.


Types of Licenses

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In Austria, getting a gambling license is a detailed and rigorous process aimed at maintaining a fair and secure environment.

State gambling licenses are issued by Austria’s federal states, typically lasting 10 to 15 years. Applicants need a supervisory board, qualified managing director, specific capital for gambling machines, and financial guarantees.

Software suppliers don't need a license but must meet technical standards for gambling machines and betting terminals, ensuring integrity and security across operations.

For lotteries, a single license covers all activities, including online games and video lottery terminals. This license, held by Österreichische Lotterien GmbH, is valid until 2027 and requires a substantial capital base.

Are Casinos legal in Austria? Casinos operate under fifteen licenses, with twelve controlled by Casinos Austria AG. These are valid until 2027 and 2030, requiring a significant capital investment. Applicants must be EU or EEA-based, with qualified managing directors and a security deposit.

Betting licenses, also state-managed, are more flexible with no fixed number. Applicants need to show professional qualifications and financial stability.

Are Performance Marketing Companies & Advertising allowed?

Yes, gambling ads are allowed in Austria, but there are strict rules to keep things in check. They can’t aim ads at kids or make it seem like gambling will fix everybody’s money troubles. The authorities watch closely to make sure ads are honest and not too aggressive. Upon violation of the rules, they could face hefty fines or even lose their license.

Marketing affiliates are welcome in Austria’s gambling scene, but they have to follow the same tough rules as the casinos and betting companies. No special license is needed, but they must be careful about how they promote gambling, making sure they don’t cross any lines. If they do, they’ll face penalties, just like the operators. This keeps the industry fair and protects people from shady marketing.


Risks and Potential Consequences of Non-Compliance

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Austria is getting serious about illegal gambling. In just the first half of the year, fines for unlicensed gambling have doubled, signaling a major crackdown. Authorities aren't just slapping offenders with fines—they're also confiscating equipment and assets. The government wants everyone to know that if you’re involved in illegal gambling, the consequences are steep and swift. This tough approach is all about making sure the gambling industry is safe and fair for everyone who plays by the rules.

Will There Be Changes to the Regulation Laws?

Austria is gearing up to make some changes to its gambling laws. The government is focused on tightening regulations to enhance player protection, improve transparency, and crack down on illegal gambling activities. With the rise of online gambling, these updates are becoming increasingly important. If you're interested in how the gambling scene in Austria is evolving, keep an eye out—these changes could have a big impact on the future of the industry.

Future Development of the Gambling Industry in Austria

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The government is planning to institute a new authority that will be focused on licensing and enforcement. In the ever-growing online sector, this new entity arms the gambling community with more player protection and even less illegal gambling with one goal in mind – make gambling safer and transparent. These changes reflect Austria’s commitment to maintaining a fair gambling environment.

Conclusion

In conclusion, Austria is quite big on gambling and iGaming restrictions, whether it be in digital form or land-based. However, these strict laws benefit the player when it comes to their protection, especially considering self-exclusion options and mandatory breaks. The country is aiming towards an even more protected federacy with new changes expected sooner than later.

2024-10-10

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