An unlicenced lottery based in Austria has reportedly been busted after authorities discovered it had sold tickets to people worldwide. Authorities added that the operation sold tickets in-person and online. They discovered evidence of the illegal operation following a raid on the operation’s headquarters in Vienna.
Platforms like Facebook used
According to a report by the Ministry of Finance, the illegal operation used online platforms like Facebook to lure players globally. The players were enticed with promises of luxury cars, Rolex watches, and massive cash prizes. However, the issue remained that the illegal lottery had no licence. This operation not only defied gambling regulations but also breached national tax laws.
After months of surveillance and groundwork, the Vienna police, working in coordination with national agencies, launched a formal investigation. They tracked suspicious transactions and communication patterns leading back to the operation’s headquarters. On March 26, members of several law enforcement bodies raided the lottery’s headquarters in Vienna, located in a residential building.
Operation involved non-Austrians
The officials discovered a variety of illegal goods and evidence of the operation. Detailed ledgers, spreadsheets, and correspondence were retrieved as enforcement officials busted the illegal operation. It was found that the lottery generated a six-figure profit, which was never declared. Those involved in the illegal operation face a variety of charges for violating the country’s gambling and tax laws. Since some of the key players were not Austrian citizens, they may face deportation in addition to criminal charges, pending the outcome of legal proceedings.
In other news, Austria’s new three-party coalition government, led by Andreas Hanger, Kai Jan Krainer, and Karin Doppelbauer, recently approved a provisional budget for 2025 that includes a significant increase in taxes on Austrian sports betting. This move will see betting fees rise from 2 percent to 5 percent of bets, effective from 1 April, rather than the previously planned gradual increase up to January 2026.
Casino market reaching a tipping point
Delving deeper, Austria’s casino market is approaching a tipping point as the expiry of Casinos Austria’s exclusive licence in 2027 revives calls for liberalisation. A move to a competitive multi-licence system could offer significant benefits to the state, and analysts see a rare opportunity to modernise gambling regulation in Austria. The online gambling market in Austria was valued at around €632 million in 2024, accounting for around 20 percent of total gambling revenue. The land-based casino and gambling sector in Austria is expected to generate approximately €1.83 billion in revenue in 2025. This segment includes revenue from traditional casino games, slot machines, and other forms of gambling.
Reforms in the country’s gambling industry are also due as there are increasing calls, including by the European Gaming and Betting Association (EGBA), to overhaul its outdated monopoly system. Austria’s monopoly system grants exclusive rights to a single operator for online casino gaming. While this approach may seem straightforward, it is increasingly out of sync with broader European trends. The monopoly model has several drawbacks, including a lack of consumer protection, limited regulatory oversight, and a loss of potential tax revenue.
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