Zona de Azar Belgium – EGBA Calls for Modern Regulation for Online Casino Gaming

Belgium.- December 19th 2024 www.zonadeazar.com While most EU member states have embraced modern licensing frameworks for online casino gaming, Austria remains one of just two countries clinging to an outdated monopoly system. This places Austrian players at risk and leaves hundreds of millions in tax revenue uncollected.

The European Gaming and Betting Association (EGBA) believes Austria’s ongoing government negotiations present a vital opportunity to transform its gambling regulation based on European best practices. The country’s outdated gambling monopoly framework not only falls behind contemporary European standards but actively undermines consumer protection, regulatory oversight, and tax generation.

While 21 EU member states have already fully modernised their online gambling frameworks through multi-licensing for online casino gaming, Austria remains locked in the past alongside only Poland[1] in maintaining a monopoly system. The consequences are clear: a thriving black market where thousands of Austrian players gamble on unregulated websites beyond the reach of local consumer protection measures or government oversight.

Against this backdrop, the EGBA calls on Austria’s government negotiators – Chancellor Nehammer (ÖVP), Chairman Babler (SPÖ), and Chairwoman Meinl-Reisinger (NEOS) – to seize this moment for reform. By prioritising the introduction of multi-licensing for online casino gaming[2] in the new government’s programme, they can build on the foundation of reforms initiated by former Finance Minister Brunner and bring Austria’s gambling regulation into the 21st century.

The momentum for modern gambling reform is building across Europe. Finland recently decided to end its monopoly and open its online gambling market, including casino games, for competition in 2026, following the successful examples of Denmark and Sweden. Denmark’s experience is particularly instructive: after introducing multi-licensing in 2012, the regulated online gambling market channelisation surged from 72% to 90% by 2023,[3] delivering improvements in consumer protection and generating substantial new tax revenues.

The Case for Reform: Three Key Benefits of Online Casino Multi-licensing
1. Better Player Protection: By bringing online casino gaming into a regulated framework, Austria can protect its citizens with mandatory safeguards, safer gambling tools, and comprehensive consumer protection measures. Currently, thousands of Austrian players gamble on unregulated sites without any guaranteed basic protections, like self-exclusion.

2. Improved Regulatory Oversight: A multi-licensing system would give Austrian authorities greater oversight of their online gambling market, replacing the current situation where a significant portion of gambling activity occurs in the shadows. This means better monitoring, more effective controls, and genuine ability to enforce safer gambling measures.

3. Greater Economic Benefits: Analysis shows that multi-licensing for online casino gaming could generate €1 billion in additional tax revenue by 2030[4] by bringing currently unregulated online casino activity into the tax system.

Austria stands at a crossroads: it can learn from two decades of regulatory experience across Europe and design a best-in-class framework that protects players while maximising the economic benefits.

The Path to Reform: Four Essential Steps

1. Create a Competitive Licensing Framework: Replace the state monopoly with a robust multi-licensing system that combines strong consumer safeguards with open market competition. This will align Austria with European best practices while creating a vibrant, well-regulated marketplace.

2. Establish Independent Oversight: Create a dedicated gambling authority with real enforcement powers and clear independence. This new regulator would supervise operators, enforce compliance, and maintain market integrity through data-driven regulatory oversight.

3. Strengthen Consumer Protection: Align Austria’s gambling laws with proven European best practices in player protection regulation, including mandatory safer gambling tools, requirements for safer gambling promotion, self-exclusion systems, and responsible advertising.[5] As demonstrated in EGBA’s latest sustainability report, our members are making significant progress in these areas.[6]

4. Design a Smart Tax Policy: Establish a competitive GGR-based tax rate for online casino gaming that optimises tax revenue by balancing two crucial goals: generating sustainable tax revenue and ensuring licensed operators can offer a product that effectively competes with offshore sites.

Maarten Haijer, Secretary General of EGBA, emphasises the urgency for reform: “The evidence from across Europe is clear and compelling: multi-licensing works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue. With government negotiations underway, Austria has a golden opportunity to modernise its approach to online casino regulation and benefit from the proven regulatory approaches elsewhere. The time to act is now.”

________________________________________

[1] Europe Is Well On Its Way Towards Full Multi-Licensing For Online Gambling, EGBA (2024).

[2] Including blackjack, roulette, slots, other casino games, and poker.

[3] H2 Gambling Capital, Danish Gambling Authority.

[4] The Austrian Association for Betting and Gambling (OVWG) projects that a comprehensive licensing system could generate an additional €200 million in annual tax revenue per year, based on current tax rates, through increased channelisation of players from unregulated to regulated platforms.

[5] Consumer Protection in EU Online Gambling Regulation, City University of London (2021).

[6] Sustainability Report 2024, EGBA (2024).

Edited by: @MaiaDigital www.zonadeazar.com