Regulated
Austria basically has two types of games of chance in the broader sense:

• Actual gambling
• Betting

According to the Austrian Gambling Act 1989 (GSpG), the dividing line is drawn by the element of chance. If the decision on the outcome of the game depends exclusively or predominantly (i.e. at least half) on the skill of the player, it is not a game of chance in the narrower sense, but betting (or skill gaming). In short, this means that the Austrian Gambling Act refers to betting whenever skill outweighs the element of chance.

Games of chance within the meaning of the Austrian Gambling Act are:

• Roulette
• Observation roulette
• Poker (all forms and variations of poker)
• Blackjack
• Two Aces
• Bingo
• Keno
• Baccarat
• Baccarat-chemin-de-fer and variations thereof

The question of whether a game qualifies as a game of chance in the narrower sense or as a bet is of great practical importance: the former (gambling) falls under the competence of the federal government and is consequently subject to the gambling monopoly stipulated in 3 Austrian Gambling Act, while betting falls under the (liberalised) regime of the respective province. This means that a betting operator must in principle comply with (provincial) betting laws. There is no uniform federal solution, but nine different betting laws, some of which differ greatly from one another.

In principle, the licence(s) are not specifically limited to AT or Austrian provinces, unless specifically described in certain licensing guidelines or licensing awarding documents. Practically, licensees may offer their (online) services into other Austrian provinces or even into other EU Member States on the basis of the freedom of establishment and the freedom to provide services (Art 49 and 56 TFEU).

Overview Of Regulated Products
Lotteries
This type of gambling is regulated and according to § 14 Austrian Gambling Act only one licence is available for it, which is held by the monopolist Österreichische Lotteriengesellschaft mbH until 2027.According to the Gambling Act, the term “lotteries” covers a whole range of different games:

• Lotto: Lotto is a game in which a promoter accepts and processes bets on the odds of several numbers winning from a specific set of numbers. The winning numbers are identified by public draw. The total winnings are divided among several prize categories and all prizes from the same category are equal
• Football pools: Football pools is a draw in which a promoter accepts and processes bets on the outcome of several sporting events (collective bets). The total winnings are divided among several prize categories and all prizes from the same category are equal. The result of sporting events, which are cancelled, do not take place at the appointed time or change in their competitive nature shall be replaced by a public draw (substitute draw)
• Add-on-game: An add-on-game is a draw which may be conducted only in conjunction with other games of chance to which the licensee has the rights. A winning number is identified during a public draw. Players whose betting slip numbers match the winning number in whole or in part win. The total winnings are divided among several prize categories and all prizes from the same category are equal
• Instant lotteries (scratch cards): Instant lotteries are draws in which the gambling participants can determine immediately whether they have won by examining their lottery tickets to see whether a prize has been printed on the ticket. Other instant lotteries are draws in which the gambling participant may obtain a possible prize which arises from bets on the chances of symbols or number combinations winning within 24 hours of being closed
• Class lottery: The class lottery is a draw in which the game shares have chances of winning in several successive sections. The strikes are found out by public drawings of lots
• Number lotto: Number lotto is a draw in which a promoter accepts and processes bets on the chances of several numbers or symbols winning from a specific set of numbers or symbols. The winning numbers or symbols are determined by public draw. The individual prize amounts to a predetermined multiple of the stake
• Number lotteries: Number lotteries are draws in which the game shares are identified by consecutive numbers. The prizes are identified by public draw
• Bingo and keno: Bingo and keno are draws in which a promoter accepts and processes bets on the odds of number combinations winning, whereas prizes are won by the gambling participants through the number combinations matching the determined winning numbers
• Apart from that, so-called “electronic lotteries” also fall under the scope of lotteries: Electronic lotteries are draws in which the player participates directly using electronic media while the outcome is decided centrally and provided via electronic media (see “online gambling” below)

Online Gambling
All online gambling (except for online betting, see below) is regulated and, as so-called “electronic lotteries” (12a Gambling Act), subject to the aforementioned “lottery single licence”: Electronic lotteries are draws in which the player participates directly using electronic media while the outcome is decided centrally and provided via electronic media. Hence, video lottery terminals (VLT) are also covered by the definition of “electronic lotteries” and its lottery licence held by the monopolist Österreichische Lotteriengesellschaft mbH until 30 September 2027. Online betting does not fall under this regime; it is governed by the nine provinces.

Land-Based Casino
Land-based casinos are regulated by the Gambling Act. Currently, a total of twelve (12) land-based casino locations are allocated (all of them to the de-facto monopolist Casinos Austria AG). The award procedure was made in two procedures in 6 locations, once in the so-called “city package” with locations in the Austrian cities of Bregenz, Graz, Innsbruck, Linz, Salzburg, and Vienna (with licences valid until 31 December 2027) and once in the so-called “rural package” for the municipal territories of Baden, Kitzbühel, Riezlern, Seefeld, Velden, Zell am See (with licences valid until 31 December 2030). These licences cover land-based casino gambling only and are not to be confused with the online gambling single licence (see above).

Gaming Machines
5 Austrian Gambling Act regulates provincial draws with gaming machines at fixed, publicly accessible establishments. A minimum of 10 and a maximum of 50 gaming machines can be set up in gaming machine parlours or a maximum of three gaming machines at individual locations. However, the regulation is within the competence of the respective provinces; Vienna, for example, has banned this so-called “small-scale gambling”. This form of gambling will not be discussed further in this Jurisdiction Report on Austria. In any case, such provincial gaming machines should not be confused with video lottery terminals (VLT), which are connected to a server and therefore fall under online gambling/electronic lotteries (which is monopolised; see above).

Betting
Betting (including online betting) is a permitted, regulated and licensable activity in Austria. However, the legislative competence lies with the nine provinces, which means that operators are confronted with a fragmented legal situation. This legislative competence covers online as well as offline betting, whereby four provinces, namely Burgenland, Carinthia, Styria and Vienna, do not explicitly regulate the online sector.

Skill Games
Skill games as such are not defined in Austria and not explicitly regulated.

Supplier/B2B Licence
Not explicitly regulated.

Market size
According to the renowned Austrian market analysis institute Kreutzer Fischer & Partner (please note that some of these figures have been further calculated on the basis of publications by Kreutzer Fischer & Partner [see below]), gambling and betting stakes reached a total of EUR 21.9 billion in 2022 (impressive increase of 36.1% compared to 2021), of which more than 50% (about EUR 11.1 billion) took place online. Gross gaming revenue (GGR), which represents the difference between stakes and winnings paid out, recorded a moderate year-on-year increase of 21.7%, reaching EUR 2.1 billion.

Lottery gaming GGR decreased by 2.1% compared to 2021, reaching about EUR 699 million. Even more notable was growth in the online sector, which increased by 22.1% to about EUR 708 million.

For more information (in German) see the Branchen Radar website for further details.

Competitive Landscape
Due to the monopoly, in the sector of lottery games and online gambling, there currently is only one licensed operator, namely Österreichische Lotteriengesellschaft mbH. In addition, several operators licensed in the EU (mostly based in Malta) are active on the Austrian market, although they do not hold a national Austrian licence.

In the offline gambling sector (casinos), there are currently 12 gambling venues across Austria, all of which are operated by Casinos Austria AG, resulting in a de facto monopoly here as well (due to a limited number of licences).

The betting sector, in turn, is subject to the legislation of the respective province and a liberalised licensing system. This is therefore the only area that is not monopolised and thus accessible to market participants (including online betting operators).

According to the Austrian Sports Betting Association (OSWV), slightly fewer than 3,000 (land-based) betting shops operated in Austria in 2022, with around 118 betting licences issued.

Localisation
While the use of credit cards is generally possible without any essential problems, pre-paid cards, however, are limited due to money laundering concerns. Furthermore, debit cards are widely used.

Marketing channels are extensive, with advertisement in TV and newspapers (i.e, gambling monopolists). Apart from that, sports sponsorships and the associated exposure through international TV broadcasting are widely favoured for the purpose of branding purposes (i.e, betting operators).

Top Key Attractions and Challenges

Attractions

• Attractive market with relatively high gambling-related spending per capita
• Liberalised licensing system for betting
• Rather low tax rate in the betting sector (2% on stakes, compared to 5% in Germany)
• Very good all-around infrastructure and jurisdiction in the field of betting
• Skilled personnel in Austria for (online and offline) betting and gambling
• No general legal restriction on the applicability of the respective licences (see above)

Challenges

• The offering of online gambling, lottery and casino products requires a national licence, while these on-/offline products are monopolised
• Obligatory physical presence within Austria
• Rather strict responsible gambling requirements, including AML requirements
• Risk of reimbursement claims by players in online gambling sector (not so for online betting sector); therefore rather high legal uncertainty for online gambling operators