New legal framework for online gambling?

Online gambling is de facto monopolized in Austria under a single lottery licence. This monopolization has been the subject of discussions and legal proceedings since many years. At issue are questions of player protection, the compliance of the Austrian legal situation with EU law (the current single licence holder continues to advertise its services), and whether judgments by Austrian courts must be enforced in the country where the foreign online gambling provider is based. 

Against this backdrop, a ministerial draft (125/ME) to amend the Federal Gambling Act (Glücksspielgesetz) and the Telecommunications Act 2021 (Telekommunikationsgesetz 2021) was published at the end of June 2026. If implemented, this would mark a U-turn for Austria in online gambling regulation (single licence strategy). In the future, the online gambling market could be opened up to an unlimited number of domestic and international providers; at the same time, strict rules for the granting of licences would be written into the law. 

Envisaged criteria for the granting of a licence

An online gambling operator applying for a licence in Austria would have to meet the following requirements according to the ministerial draft:

  • A limited liability company / corporation with its registered office in Austria; there is no need to establish a domestic limited company if the foreign limited company holds a comparable licence in its country of incorporation in an EU / EEA member state, is subject to comparable state gambling supervision there, and judgments of Austrian civil courts can be enforced there. In this case, only a branch office in Austria is required.

  • A safe and secure gambling and proper conduct must not be jeopardised by provisions in the articles of association.

  • A liability capital of at least EUR 10 million.

  • Persons with a controlling influence must be of good repute from a regulatory perspective. 

  • The management must be professionally competent.

  • The group structure and the legal and administrative regulations of the country of incorporation must not hinder effective supervision.

  • Full compliance is ensured (in particular regarding player protection, prevention of money laundering and terrorism financing).

Special provisions for online gambling providers already in operation 

Online gambling operators who have previously organised illegal online gambling (from the perspective of the Austrian legislature) may also apply for a licence. However, in order to do so, they would have to settle any outstanding tax liabilities in full and comply with final and binding judgments of Austrian courts. A so-called ‘cooling-off period’ is intended to provide an incentive to cease online gambling without an Austrian licence immediately. Under the current legislative proposal, anyone continuing to operate such online gambling beyond 1 January 2027 would be excluded from being granted a licence for minimum 18 months. By applying this provision also to the owner of a brand under which online gambling has previously been operated, the proposal aims at hindering a circumvention of the law. 

To encourage non-Austrian online gambling providers to switch to the planned new “legalization” model, measures against unlicensed online gambling services are to be stepped up and the resulting payment flows blocked (internet blocking, payment blocking).

New developments in player protection

The following key changes are planned: 

  • Obligations and liability provisions to ensure player protection will be extended to online gambling providers.

  • A general, cross-operator register for site / gambling bans or restrictions is to be established.

  • Deposit limits for online gambling (with a limit register) and slot machines.

  • In addition, maximum monetary and time limits per day, week and month (self-limitation by players).

  • Online-gambling providers must comply with responsible standards in their advertising campaigns.

  • The pace of gambling will be slowed down.

  • There are to be ‘waiting periods’ for slot machines.

Outlook

The ministerial draft is under review until 15 July 2026 and then due to be introduced into the parliamentary process relatively quickly. The proposals are being either welcomed or sharply criticised, depending on the stakeholder interests involved. Some legal issues remain unresolved. It remains to be seen whether the efforts to legalise unlicensed gambling in Austria through market regulation will be successful.

We will keep you updated.

Please note: This blog is for general information purposes only and in no way constitutes legal advice from Binder Grösswang Rechtsanwälte GmbH. The blog cannot replace individual legal advice. Binder Grösswang Rechtsanwälte GmbH accepts no liability of any kind for the content and accuracy of the blog.