For many years now, Austria has had a politically acceptable monopoly when it comes to gambling activities. The company Österreichische Lotterien, manages nearly all gambling undertakings within the country. It regulates all lotteries, land-based casinos, and almost every other gambling activity. As a result, the company served as the sole provider of gambling services to citizens of Austria. However, this system is set to change this year and looks ready to transition towards a more liberal and competitive Austrian online gambling market.
The Old System: A Monopoly on Gambling
The monopolization of businesses operating on the basis of gambling in Austria means that all firms were required to operate under a singular structure. Österreichische Lotterien, as a mono provider, engages in both offline and online gambling. Such a monopoly assures that all regulated gambling activities, such as lottery games, revered online lottery schemes, and betting, are monopolized by the state in the name of problem gambling supervision and fraud prevention.
This overarching framework has certainly had unforeseen repercussions. Such monopolies eliminate competition and innovation. These state-managed gambling platforms did not help the country’s citizens who were interested in online gambling since they had limited options. Furthermore, this model propelled citizens to illegally gamble on international platforms that did not abide by Austrian online gambling law, thereby undermining state-sanctioned platforms.
Consequences of the Monopoly System
Austria’s monopoly on gambling has its fair share of consequences, the most glaring of which is the limited options available. In Austria, consumers were limited to state-run platforms, which often didn’t improve the user experience. With a lack of competition, innovation was virtually nonexistent, leaving Austrian players with outdated technology and a handful of games to play.
In addition to the consequences mentioned above, the state monopoly also led to illegal gambling practices. The unregulated foreign platforms, while boundless, were unsafe since they were outside of Austria’s jurisdiction. This meant players had no guarantees for safe transactions or responsible gambling policies.
The New System: A Shift Toward Regulation
Beginning in 2025, Austria will lift its age-old gambling monopoly and allow foreign contractors to offer their services to Austrian players. In doing so, the state plans to collect more taxes through investments in the now-opened online gambling market.
As we hear, the new system comes with features that should benefit players. First, competition will most likely have a positive impact, both on the service provided and the number of games available.
The system seems quite promising, as with the introduction of licensing and regulation, experts predict that cases of illegal gambling will reduce significantly. There is little doubt that the Austrian government will allow foreign operators to set up sites under their tight regulations, and this will stop players from being scammed on unregulated sites.
Lastly, the Austrian government will be able to earn tax income from foreign operators as well as local ones. The regulated market will allow the government more control over how public resources, such as those dealing with gambling addiction and problem gaming, are funded.
A New Era for Austrian Gambling
In short, making such drastic changes from a state-sponsored monopoly to a regulated Austrian online gambling market will result in powerful outcomes. Players will be very pleased with the increase in options available to them.
