What if Austria liberalised iGaming? Georgi Iliev shares market outlook
The article was authored by Georgi Iliev, Compliance Manager, Delasport
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. Exclusively for SiGMA News, Delasport Compliance Manager Georgi Iliev provided a detailed overview of Austria’s iGaming market, focusing on the outlook.
Revenue share and forecasts
In 2024, the online gambling market in Austria was valued at around €632 million, 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.
The online segment is forecast to grow at a compound annual growth rate (CAGR) of 4.2% to reach €777m by 2029. Meanwhile, the CAGR of the Austrian land-based casino market will be around 2.2% between 2025 and 2029.
Regulatory framework and licensing in Austria
In Austria, casinos and casino-style games are regulated at the federal level under the Gambling Act (Glücksspielgesetz, GSpG). According to Section 1, ‘gambling’ is defined as a game in which the outcome depends entirely or mainly on luck. This category includes both land-based casinos and various forms of online gambling, including lotteries and casino-style games.
Under Section 21 of the GSpG, the Federal Ministry of Finance has the authority to issue up to 15 land-based casino licences. These licences are currently de facto monopolised by Casinos Austria AG (CASAG), which is partly owned by the state through Österreichische Beteiligungs AG (ÖBAG). Online gambling is classified as ‘electronic lotteries’ under the Act. The exclusive national licence for these offerings is held by Casinos Austria and Austrian Lotteries, which operate together through the platform www.win2day.at.
These licences expire on 30 September 2027. A public tender for new licences is expected to be launched in 2025, prior to the expiry of the licence in 2027. The Ministry of Finance is responsible for conducting the tender and issuing future concessions in accordance with the existing legal framework.
Arguments in favour of casino reform in Austria
The current legal and regulatory framework for Austria’s casino sector has attracted criticism from stakeholders, many of whom favour a liberalised and competitive market model. With Casinos Austria’s de facto monopoly licences expiring in 2027, stakeholders express cautious optimism that regulatory reform is possible. They emphasise that an open market system could bring wider benefits not only to operators and consumers but also to the industry as a whole.
In their view, moving away from a monopoly model would address long-standing problems, as reflected in the by Andreas Schloenhardt and Johannes Kramml. It presents a comprehensive analysis of Austria’s casino regulatory framework, highlighting the interplay of political interests, state control and the problems inherent in the current monopoly system.
State Monopoly and Political Influence: As already mentioned, CASAG monopolises casino operations in Austria. The Austrian Ministry of Finance holds its stake through ÖBAG, which holds a 33.2 percent stake in CASAG as of April 2025.
With this arrangement, the Ministry of Finance plays a dual role as both regulator and shareholder of Casinos Austria, raising concerns about potential conflicts of interest. In addition, politically influential appointments within the company have drawn criticism for a lack of transparency and merit-based governance.
A prime example is the 2019 Casinos-Affäre scandal, which attracted the attention of major industry players, including the Austrian Betting and Gaming Association (OVWG), which publicly expressed its concerns. At the centre of the scandal were allegations of political favouritism and quid pro quo arrangements related to strategic corporate appointments.
Licensing and barriers to market entry: The licensing process in Austria has long been criticised for its lack of transparency and clear bias towards the incumbent operator. Attempts by other companies to enter the market have been blocked due to procedural deficiencies and a lack of transparency. In particular, three of the 15 existing land-based casino licences were revoked after the Austrian Supreme Administrative Court upheld a decision by the Federal Administrative Court that found the tender process to be in breach of EU transparency principles.
Measures to protect players: The Gambling Act prescribes measures to protect players, including the introduction of responsible gambling practices such as staff training, the possibility of self-exclusion and monitoring of problem gambling behaviour. However, the effectiveness of these measures has been questioned due to the Ministry of Finance’s dual role as both regulator and stakeholder in Casinos Austria.
Stakeholders to support Austrian gambling reform
Stakeholders, including the European Gaming and Betting Association (EGBA) in its and the OVWG, favour the introduction of a multi-licensing system for casino operations. An open licensing regime is expected to improve the quality of service in the Austrian casino market. With domestic and international operators competing under a single regulatory framework, the market will benefit from technological advances and more efficient channelling of demand into the regulated space. This is expected to lead to increased tax revenues, investment attraction and growth in ancillary sectors such as compliance, payments and audits.
The prospects of the Austrian iGaming market
While the current outlook for the online gambling market in Austria appears promising, liberalisation of the casino market could further enhance growth prospects. Opening up the market to additional licensed operators is likely to accelerate expansion, which could lead to an increase in online market share and revenues that exceed current forecasts. In other words, while forecasts already point to sustained growth, a move to a competitive licensing model could lead to a more favourable trajectory for the sector.
This article was first published in Russian on 24 April 2025.
