Austria’s gambling market projected to grow despite monopoly debate
The Austrian gambling industry is currently at the centre of both robust growth projections and regulatory debates. The market has seen notable shifts over recent years, particularly in the online sector, which is projected to reach a volume of €632 million by 2024, according to Statista. This projected expansion coincides with increasing tension around Austria’s monopoly-driven gambling regulations.
Austria’s gambling market is largely segmented by type, with sports betting operating under multiple licences, while casino games and lotteries remain the exclusive domain of the monopoly holder, Austrian Lotteries and Casinos Austria. This setup has fostered a reliance on land-based gambling, though online participation has started gaining ground. According to IBIA (the European Gaming and Betting Association), around 35 percent of Austria’s €1.5 billion gambling revenue in 2021 was generated online, even though online gambling still trails that of countries like Sweden, where online platforms account for 80 percent of the market.
While the European online gambling landscape has seen accelerated growth, with countries like Latvia and Romania registering high online gambling rates (75 percent and 65 percent, respectively), Austria’s online sector remains limited by its regulatory framework. Statista, however, projects a steady rise for the online gambling segment in Austria, forecasting a compound annual growth rate (CAGR) of 4.22 percent through 2029. By then, this market segment could reach a volume of approximately €777 million.
European market in 2021. Source: IBIA.
Casinos Austria’s performance
Casinos Austria, the country’s leading gambling organisation and monopoly holder, generated €1.48 billion in gross gaming revenue (GGR) in 2023, driven significantly by its lottery segment, which rose by 1.5 percent to reach €946.8 million. Within the casino division itself, GGR increased by 15.8 percent to €304.5 million, while its international arm added another €212.1 million.
Expansion of lottery and VLTs
Lottery games, a cornerstone of Austria’s gambling industry, continue to see growth, with approximately 15 percent of total gambling revenue derived from lotteries, according to IBIA. Since 1986, Austrian Lotteries, owned by Casinos Austria, has managed the exclusive licences for all draw-based games, including the popular video lottery terminals (VLTs) through its WINWIN brand. In 2023, WINWIN’s revenues increased by 3.3 percent, and the company expanded its footprint with 20 venues across the country, integrating its offerings with Austria’s regional leisure and tourism sectors.
Meanwhile, the company’s primary sports betting brand, Tipp3, saw a minor revenue decline of 2.7 percent in 2023 FY, reflecting a year without major international sporting events. Yet Tipp3 remains popular, operating in over 3,000 locations throughout Austria.
Regulatory disputes and monopoly opponents
Austria’s monopoly model, however, has faced criticism. According to the Austrian Association for Betting and Gambling (OVWG), which represents several major operators like bet365 and Flutter, the restrictive monopoly limits both market competition and player freedom. In early 2024, the OVWG submitted a formal complaint to the European Commission, arguing that the monopoly contravenes EU free trade principles by preventing international operators from accessing the Austrian market. Casinos Austria has defended its position, dismissing these complaints as “PR measures,” and noting that Austrian courts are best suited to address these matters.
Despite pressure from the OVWG, the European Commission has historically refrained from direct involvement in EU member state gambling policies, opting to leave such decisions to national courts. Nevertheless, this stance has left Austria’s monopoly system largely unchallenged, with Casinos Austria’s current licensing terms set to expire between 2027 and 2030.
Future prospects
Amid Austria’s complex regulatory environment, the online gambling market is expected to continue its steady growth. Statista’s projections estimate that by 2029, the sector will attract over 920,000 users, a substantial increase from current participation rates. Despite the monopoly, Austria’s gambling industry remains lucrative, contributing an estimated €724 million in taxes in 2023 alone, with gaming-related taxes rising by 2.3 percent to €612 million.
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