Austria Debates 'Cooling-Off' Period for Grey-Market Operators in Final iGaming Law Talks

Austrian lawmakers are in the concluding stages of negotiations for the country's anticipated new iGaming legislation, with a significant point of contention revolving around a proposed "cooling-off" period for operators currently active in the grey market. This reform is set to dismantle one of Europe's last gambling monopolies, opening the online sector to new licensees after the current permit expires in 2027.

Negotiators from the three ruling parties – the centre-right People’s Party (ÖVP), the centre-left Social Democrats (SPÖ), and the liberal NEOS – are reportedly ironing out the final elements of the bill this week. The SPÖ-led Ministry of Finance's draft, which emerged in May, initially revealed plans to end the national online gambling monopoly, paving the way for a more open market structure.

The Proposed "Cooling-Off" Mechanism

At the heart of the current debate is the suggestion to impose a temporary ban on companies that have operated without an Austrian license in recent years, preventing them from immediately applying for new permits. This measure, strongly supported by the Ministry of Finance, could see operators found to have breached Austrian gambling laws within the last five years barred from the market for an estimated 24 to 36 months. Public affairs consultant Felix Geyer noted that this would primarily impact EU-licensed entities active in Austria, while the true black market would remain unaffected as "they won’t be applying for licences."

The existing state monopolist, Casinos Austria, has been a vocal proponent of such restrictions. Patrick Minar, a spokesperson for Casinos Austria, emphasized the incongruity of illicit operators being granted licenses, stating, "One day you’re operating illegally, and the next day you’re granted a licence – that’s absurd." He further suggested "an initial cooling-off phase of three to five years would be conceivable." Similarly, Admiral, a prominent land-based brand, advocated for a transition period, arguing that established, responsibly operating state-run schemes should not be treated identically to those who previously operated outside regulatory frameworks.

Industry Opposition and Player Protection Concerns

However, the proposal faces considerable opposition, particularly from the Austrian Betting and Gaming Association (OWVG). Simon Priglinger-Simader, president of the OWVG, warned that "a cooling-off period would be the reform killer." He contended that such a measure would undermine the government's objectives of strengthening the regulated market, protecting players, and securing tax revenues by forcing compliant operators out and inadvertently boosting the black market. Player claims lawyers have also raised concerns, suggesting that a cooling-off period could complicate the resolution of player claims, which, along with unpaid taxes, are mandated as prerequisites for market entry under the draft law.

Other Key Regulatory Points

Beyond the cooling-off period, other significant details remain under discussion. A proposed maximum stake of €2 per game, coupled with a €2,000 maximum winnings limit, has emerged as a major sticking point. While the SPÖ advocates for the €2 limit on player protection grounds, industry stakeholders across the spectrum, including land-based operators and the OWVG, universally believe that reducing the current €10 maximum stake would severely damage the regulated online sector. Furthermore, the number of land-based casino licenses is being debated, with initial drafts mentioning up to 12 concessions, while the ÖVP and NEOS seek to increase this figure. The NEOS also aims to double the proposed €20 million lottery license fee to €40 million, despite lotteries remaining a monopoly.

Legislative Outlook

Despite these ongoing debates, the timeline for the new iGaming law appears clearer. The government intends to finalize the draft before the parliamentary summer recess in July. This would allow the mandatory three-month EU notification process to occur over the summer, with the legislation potentially coming into force by autumn. This revised schedule would then initiate the tender process for new online licenses, well in advance of the current 15-year single license's expiration at the end of next year.