HomeGambling IndustryEGBA calls on Austria to shift towards licensee-based gambling industry model

EGBA calls on Austria to shift towards licensee-based gambling industry model

LAWS AND REGULATIONS23 Dec 2024
3 min. read
Vienna Opera

The European Gaming and Betting Association (EGBA) has urged Austria to revise its gambling model and framework and shift towards an industry that relies on licensees rather than state monopoly. This has been the trend all across Europe, but Austria remains a holdout state, where the national monopoly is still the preferred way of doing things.

EGBA’s suggestion comes at a time when Finland, another entrenched state monopoly, has acquiesced to shifting to the licensee model. According to the association, such a shift allows for the collection of hundreds of millions in tax revenue that are otherwise missed and never collected.

EGBA calls on key decision-makers to embark on gambling regulation changes

Austria is currently negotiating changes to its regulatory framework spearheaded by Chancellor Nehammer (ÖVP), Chairman Babler (SPÖ), and Chairwoman Meinl-Reisinger (NEOS), which EGBA has addressed its appellation to. EGBA Secretary-General Maarten Haijer had this to say:

"The evidence from across Europe is clear and compelling: multi-licensing works. It brings gambling activity into the regulated market, protects consumers, and generates significant tax revenue. With government negotiations underway, Austria has a golden opportunity to modernise its approach to online casino regulation and benefit from the proven regulatory approaches elsewhere. The time to act is now."

The association has gone even further to criticize the status quo, arguing that not only did it fall behind established European standards, but also actively threatened consumer protection, making it nearly impossible to achieve a strong channelization rate into the regulated market and limit the clout of black-market operations.

The monopoly system is outdated, with 21 member-state countries of the European Union having already transitioned to the licensee-based model, as opposed to only two that still subscribe to an ossified monopoly system – Poland and Austria, EGBA added.

Protecting consumers means switching to a licensee-based model

EGBA evoked Finland as a great example of a new trend in Europe – the modernization of the gambling framework across the entire continent, with the Nordic market opening up to licensees in 2026.

Meinl-Reisinger, Nehammer and Babler need not start from scratch at all, as former Finance Minister Brunner already paved the way forward for a potential licensee-based model that the current negotiations may follow and build upon.

EGBA believes that a licensee-based model will bring noticeable gains for the local market, including better player protection, improved regulatory oversight, and greater economic benefits.


Image credit: Unsplash.com

23 Dec 2024
3 min. read
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