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Austria has taken a major procedural step in its effort to reshape the country’s gambling sector after submitting a draft overhaul of its gambling legislation to the European Commission for assessment.
The submission, confirmed by the Austrian Ministry of Finance, places the proposal within the European Union’s Technical Regulation Information System (TRIS). Under the process, a mandatory three-month standstill period now begins, allowing the European Commission and other EU member states to examine the legislation and provide comments or objections before Austria can formally adopt the measures.
The review will focus on whether the proposed framework aligns with European rules concerning competition, market access and the free movement of services. While the review is underway, Austria may continue its parliamentary procedures in parallel.
The proposed legislation follows years of debate over the future of Austria’s gambling framework. The current system stems from the Glücksspielgesetz of 1989, which established a monopoly structure granting Österreichische Lotterien exclusive rights to lotteries and online gambling, while Casinos Austria holds casino licenses.
For more than a decade, the model has faced criticism and legal challenges from European operators that argue the monopoly system conflicts with EU principles. Previous disputes reached the European Court of Justice, while the European Commission had previously encouraged Austrian governments to modernize legislation governing online gambling.
In 2026, Austria’s coalition government, consisting of the ÖVP, SPÖ and NEOS parties, agreed on a broad reform package that would mark the most substantial revision of gambling laws in more than 30 years.
Online Gambling Market Set for Major Change
A central feature of the draft legislation is the planned transition from the existing monopoly arrangement to an open licensing system for online gambling operators.
Under the proposal, companies seeking licenses must meet a range of regulatory, financial and responsible gambling requirements. Operators currently offering services to Austrian customers without authorization would need to stop those activities by 1 January 2027 to qualify immediately for licensing opportunities.
Businesses that continue operating without approval beyond that date would face restrictions. The proposed rules would block such operators from obtaining a license for 18 months, with the exclusion period increasing to 24 months from 2030.
Applicants would also need to settle outstanding tax obligations and unresolved player compensation claims before receiving approval. Authorities estimate that approximately 20,000 Austrian consumers currently have outstanding claims linked to unlicensed operators, and the reforms aim to address those cases before licenses are granted.
The legislation also proposes a new regulatory structure designed to support competition while strengthening oversight of the online market.
Alongside online licensing, the draft establishes a cap of 13 casino concessions. Authorities would be instructed to consider geographical balance and prevent excessive competition when allocating licenses. The legislation would also permit licenses to be awarded in bundled packages under certain conditions.
The structure has already generated debate within the industry. Former Casinos Austria employee Niklas Sattler criticized the package model, arguing that individual concessions would create a fairer competitive environment. “We believe it’s quite unfair,” Sattler added according to SBC News.
Enhanced Enforcement and Consumer Protection Measures
The proposed reforms include a series of new enforcement mechanisms aimed at limiting illegal gambling activity.
Authorities would receive powers to implement payment blocking, blacklisting and network blocking measures against unauthorized operators. The government also plans to introduce a digital supervisory platform that would oversee a central deposit monitoring system independent of operators.
The platform would play a key role in enforcing player protection requirements across licensed providers.
One of the most notable consumer protection measures is the creation of a nationwide self-exclusion register. The register would combine self-exclusions and operator-imposed restrictions across online gambling, casinos and slot machine venues, creating a unified system for the first time.
Officials say the measure would prevent excluded individuals from bypassing restrictions by moving between operators or gambling products.
The legislation also introduces mandatory deposit limits covering online gambling and slot machines. Lower limits would apply to customers aged between 18 and 26 as part of efforts to provide additional safeguards for younger adults.
Further player protection requirements would affect slot machine products. The draft calls for lower maximum stakes, slower gameplay speeds and a compulsory 90-minute cooling-off period when continuous play is detected.
Operators would additionally be required to conduct analyses examining the addiction risks associated with their products and submit findings that can support scientific research into gambling-related harm.
Industry Watches Outcome of EU Examination
The European Commission’s review now becomes the next key stage in the legislative process. During the standstill period, the Commission may raise concerns relating to state aid or broader single-market rules before Austria proceeds further.
Industry observers are also examining the timeline for implementation. According to the draft framework, the market could potentially open under the new model in October 2027 if the process advances as planned.
Some stakeholders remain cautious about the schedule.
“Given how slow political processes in Austria can be, I’m skeptical about whether they will be able to hand out licenses within 12 months,” political analyst Felix Geyer said. “Especially since I don’t expect them to begin before the law actually comes into force.”
The Austrian Betting and Gaming Association (OVWG) has also expressed concerns about whether the transition arrangements will successfully channel players toward licensed operators. The association has suggested that black-market operators could benefit if the reforms fail to achieve high participation within the regulated market.
For now, attention remains focused on the European Commission’s assessment. Once the review period concludes, Austria’s parliament will determine the next steps for legislation that could significantly alter the country’s gambling landscape.