The Austrian gambling market is facing one of the most significant reforms of recent years. The current ministerial draft of the Gambling Reform Act 2026 provides for a controlled opening of the online gambling market, but combines this with considerably stricter requirements regarding player protection, supervision, advertising, technical controls and enforcement against illegal operators. The core of the draft is not unrestricted liberalisation, but a new, strictly regulated multi-licence system for online gambling. This creates a significantly more complex compliance environment for operators, payment service providers, and platform and internet infrastructure companies. Companies should use the consultation phase to adapt their business models, historical tax and player litigation risks, technical systems and advertising strategies to the new legal framework at an early stage.
The background: the online market is to be moved from a grey area into a controlled licensing system
Under current legislation, online gambling in Austria is essentially covered by the term ‘electronic lotteries’. Section 12a of the Gambling Act (GSpG) currently defines electronic lotteries as games in which participation takes place directly via electronic media and the outcome is determined centrally and made available electronically. The right to organise such games in accordance with Sections 6 to 12b of the GSpG can currently be granted via a licence, with the Austrian Tax Authority designated as the competent authority under the current version of the law.
The draft builds on this framework and will, in future, separate online gambling from the existing lottery licence. Instead of a market in which online services are often effectively accessible across borders and outside Austrian supervision, a controlled licensing system for multiple providers is to be established. The legislature is thus pursuing a ‘channelling’ objective: players are to be directed towards a legal, supervised and player-protection-oriented offering. At the same time, the illegal online market is to be curbed through website blocking, blacklists, undercover test plays and payment blocking.
The reform thus also addresses a fundamental tension in gambling law under EU and constitutional law. Restrictions on the freedom to provide services may be justified in the gambling sector if they pursue legitimate objectives of general interest and are implemented in a coherent and systematic manner. Austrian case law has repeatedly applied these coherence requirements as a key criterion for assessing the gambling monopoly and systems with a limited number of licences.
Online gambling is redefined and will in future be licensed separately
The draft introduces a separate legal definition of online gambling under Section 13 of the Gambling Act (GSpG). This covers games in which players participate directly via electronic media, the outcome of the game is determined centrally and made available electronically, and the service is not provided from fixed premises. ‘Specific lotteries’ as defined in Sections 6 to 12a of the GSpG under the new classification system are excluded. This provides a clearer legal definition of online gambling than previously and, at the same time, removes it from the previous category of electronic lotteries.
The key market change lies in Section 14 of the draft GSpG. It should still be possible to authorise the operation of certain lotteries through a single licence. For online gambling under Section 13 of the GSpG, however, it should be possible to grant an unlimited number of licences. In practice, this means opening up the online market to multiple providers, though only subject to compliance with strict substantive and procedural requirements.
Online licence holders are to be subject to a significantly lower, yet still substantial, liability reserve than that required for lottery licences. Whilst the draft stipulates that a licence for certain lotteries requires paid-up share capital or authorised capital of at least EUR 100 million, a minimum capital of EUR 10 million is to suffice for online gambling. The initial online licence is to be valid for a maximum of five years; further licences or renewals are to be possible for a maximum of ten years. The fees are also to be significantly differentiated: the application for a licence is to cost EUR 70,000, the initial online licence EUR 300,000, and each subsequent licence or renewal EUR 600,000.
Of particular practical relevance are the transitional and integrity requirements for operators who have hitherto offered online gambling for participation from within Austria without an Austrian licence. Such operators are not to be excluded per se, but must, amongst other things, settle any outstanding gambling levies for which the limitation period has not yet expired, or disclose and pay them by way of a voluntary disclosure; comply with relevant final and binding judgments of Austrian civil courts ordering payment; and cease their unauthorised operations from 1 January 2027. If the service is discontinued only after 31 December 2026, a suspension period of 18 months may apply; if discontinued only after 31 December 2029, the suspension period shall be 24 months. This provision is a key compliance factor for existing international gambling groups.
Player protection becomes the core of the new online regulation
The draft places player protection at the heart of the online market liberalisation. The protective mechanisms already in place for casinos and certain land-based offerings are to be extended to online gambling and supplemented by new digital control tools. This relates in particular to the monitoring of problematic gambling behaviour, the obtaining of credit reports, counselling sessions and potential liability consequences in the event of breaches of duty. The Constitutional Court has already classified Section 25(3) of the Gaming Act (GSpG) as a player protection provision going beyond general civil law and has emphasised its specific protective function for players.
A key instrument is to be a central exclusion register covering all operators and types of gambling. This is intended to centrally record self-exclusions, operator-imposed exclusions and other gambling restrictions, and to apply to state-run gaming on slot machines, online gambling and casinos. In addition, an online gambling supervisory system is to be established for online gambling. This essentially consists of a limit register and a secure server.
The limit register is intended to ensure cross-provider deposit limits. For players up to the age of 26, the draft generally provides for a deposit limit of EUR 250 per week. For players aged 26 and over, a monthly deposit limit of EUR 1,680 is to apply. For players aged 23 and over, a different amount may be set if there is no reason to assume a risk in terms of player protection and additional measures such as close monitoring or feedback tools are in place.
The ‘Safe Server’ is intended to significantly strengthen technical oversight of online licence holders. Licence holders are to set up and operate, at their own expense, a system that records all gaming transactions digitally and in an unalterable manner. The Gambling Supervisory Authority is to have direct access to this at all times. For online providers, this will entail significant technical, data protection and operational requirements, particularly in relation to data architecture, interfaces, data retention, pseudonymisation, access control and internal control systems.
Advertising, the potential for gambling addiction and product design will be more strictly regulated
The draft reorganises the advertising regulations and sets out in more detail the responsible standards for gambling advertising. Licencees and authorisation holders are to observe child and youth protection in their advertising and take into account the potential for addiction posed by the advertised gambling activity, the presentation of potential winnings and losses, and the target audience being addressed. Further details are to be set out in a regulation issued by the Federal Minister of Finance. This will make advertising a dynamic area of supervision that can be adapted more closely in future to scientific findings and new market phenomena.
Another new feature is the statutory requirement for analyses of the potential for gambling addiction. Licensees will be required to submit such an analysis for every form of gambling covered by the licence. This leads to a risk-based approach to product compliance. Providers will not only have to demonstrate in abstract terms that they take player protection seriously, but will also, in all likelihood, have to document, on a product-by-product basis, what addiction risks exist, how these are mitigated, and how advertising, game mechanics, limits and monitoring interrelate.
Of particular significance is the planned extension of land-based slot machine safety standards to virtual slot machines. Key requirements for land-based slot machines are to apply mutatis mutandis to virtual slots. These include, amongst other things, restrictions on stake, winnings, game speed, simultaneous play and cooling-off periods. The draft stipulates, in particular, a maximum stake of EUR 5 per game, a maximum win of EUR 10,000 per game, a minimum playing duration of two seconds and a mandatory cooling-off period of at least 15 minutes following 90 minutes of uninterrupted play for slot machine offerings designed to protect players.
These product rules are particularly relevant in practice because they have a direct impact on the design of online casino offerings. Operators must take game mechanics, user interfaces, promotions, bonus models, session management, warning notices and technical restrictions into account as early as the product development stage. The days when gambling compliance could be viewed primarily as a licensing and tax issue will be over once the reform comes into force. In future, it will form an integral part of product design, data management, marketing and customer interaction.
Enforcement measures against illegal online gambling are to be significantly stepped up
The second major pillar of the draft bill is the enforcement of measures against illegal online gambling. The Anti-Fraud Office is to be granted new powers to document and prevent prohibited gambling activities via electronic media. This includes covert test games, the creation of player accounts and the use of false identities or corresponding documents, insofar as this is necessary for test games. The aim is to secure evidence of illegal gambling sites without providers being able to easily recognise and circumvent such checks.
Illegal operators are also to be publicly identified through information notices and warnings. The Anti-Fraud Office is to maintain a blacklist, whilst a whitelist of existing licences and authorisations is also planned. This will provide players, payment service providers and other market participants with an officially structured framework for determining which services are to be treated as legal or illegal. For businesses, the regular review of such lists will become part of their ongoing compliance procedures.
The proposed blocking procedures are particularly far-reaching. It should be possible to order measures against hosting, caching and search engine services that prevent or hinder access to prohibited gambling content. If these measures prove unsuccessful, the Telecoms Control Commission may, at the request of the Anti-Fraud Office, order access providers to take action against pure transit services. The draft draws on concepts from the Digital Services Act, but leaves its directly applicable EU legal provisions unaffected.
In addition, payment blocking is introduced. Participation in payment transactions for prohibited content published on the blacklist is to be prohibited. The Anti-Fraud Office may require payment service providers, in particular credit and financial services institutions, to cease their participation in such payment transactions. Under the draft, a deadline of three banking days would initially apply; in the event of continued non-compliance, a formal notice may be issued. Violations are punishable by fines of up to EUR 1 million and daily penalty payments of EUR 30,000 up to a total of EUR 750,000.
Impact extends beyond gambling operators
The reform does not only affect traditional gambling companies. Payment service providers, credit card companies, digital payment providers, hosting services, search engines, internet service providers, landlords of commercial premises and advertising partners may, directly or indirectly, be subject to new obligations. The impact assessment assumes that payment blocks and suspension orders may incur personnel, material and IT costs for affected companies, the extent of which cannot yet be quantified. This also applies to register connections, secure servers and other technical monitoring systems.
Landlords and operators of physical premises will also be more closely involved. The existing instruments of business closure, seizure and confiscation are to be made more efficient. Under certain conditions, landlords are to be subject to tax liability in the event of illegal gambling on their premises; at the same time, however, they will be granted extended rights of termination if gambling is offered without their permission. For property companies, landlords and franchise or shop-in-shop structures, this creates a need for clear contractual prohibition clauses, monitoring rights and escalation mechanisms.
The draft is particularly relevant for gambling operators if they intend to apply for an Austrian online licence in future or have already made online gambling available to Austrian players. A player’s past participation in Austrian gambling, outstanding gambling levies, voluntary disclosures, foreign insolvency proceedings, unfulfilled Austrian player judgments, trademark transfers and group structures may in future determine whether an online licence can be obtained or retained. Potential licence applicants should therefore assess at an early stage whether their existing market presence, tax situation, use of trademarks and internal records comply with the new requirements. This also includes group-wide attribution criteria, right down to the ultimate beneficial owner, and the question of whether a trademark or trade name is linked to a previous illegal gambling offering.
Issues relating to EU law, constitutional law and data protection remain central
The draft is clearly designed to strengthen the coherence of the Austrian gambling regime with EU law. The opening up of the online market is specifically not to be understood as deregulation, but rather as regulated channelling into a state-supervised offering. The combination of a strict licensing system, player protection, enforcement against illegal providers and market monitoring is intended to underpin the justification of the Austrian model under the freedom to provide services. Nevertheless, the practical implementation remains crucial, as the European Court of Justice and the Austrian supreme courts consider not only the wording of the law but also the actual operation of the system.
From a constitutional perspective, several aspects are relevant. The explanatory notes base the federal government’s competence on federal finances and monopolies. At the same time, transitional provisions are intended to safeguard the legitimate expectations of existing concessionaires and licence holders. This concerns, in particular, the phasing out of video lottery terminals, the extension of existing concessions and the staggered introduction of certain player protection obligations.
From a data protection perspective, exclusion registers, limit registers and secure servers are particularly sensitive. The draft provides for pseudonymisation, or the replacement of personal identification data with an irreversibly encrypted personal identifier, for statistical and scientific purposes. Gender and year of birth are to be excluded from this. Nevertheless, during implementation, data protection impact assessments, the allocation of roles between the authorities and providers, access policies, retention periods and technical security measures will need to be carefully worked out.
Constitutional issues relating to network blocking and payment blocking also remain relevant in practice. The draft seeks to mitigate the impact of these measures through graduated procedures, avenues for appeal, proportionality requirements and special powers conferred on the Telecoms Control Commission. For affected service providers, the decisive factor will be whether the measures ordered are technically feasible, proportionate and sufficiently specific. Companies should therefore prepare internal processes for dealing with official notifications, monitoring deadlines, conducting technical assessments and handling appeals.
Timetable and next steps
As at 30 June 2026, the draft is at the pre-parliamentary stage. According to the accompanying documents, it is intended to come into force before the end of 2026, with numerous provisions set to come into force in stages. Key enforcement and registration provisions, including the exclusion register, the online gambling supervision system, safe servers, the blacklist, test-play authorisations, network blocks and payment blocking, are due to come into force on 30 September 2027. The funding contribution for the Office for Gambling and Player Protection is to be extended to online gambling from 1 January 2028.
The draft provides for transitional rules for existing services. The current provisions on electronic lotteries are to remain applicable, subject to certain conditions, until 31 December 2028. Video lottery terminals are, in principle, to be phased out by 30 September 2027. Online licences under the new legislation are to be issued from 1 October 2027 at the earliest. Furthermore, the Federal Minister for Finance is to submit an evaluation report on the implementation of the new regulations governing online gambling to the National Council by the end of 2031.
Companies should not wait until the law is officially gazetted before implementing the reform operationally. Potential licence applicants should assess at short notice whether their group structure, capitalisation, records, Austrian tax positions, brand strategy and outstanding player claims are compatible with the new requirements. Payment service providers and technical intermediaries should develop processes for blacklist checks, regulatory notifications and time-bound blocking measures. At the same time, advertising, product and compliance teams should begin to treat player protection, limits, monitoring and documentation as mandatory components of the business model.
Conclusion
The 2026 Gambling Reform would fundamentally restructure the Austrian online gambling market. Opening up the market to multiple online licence holders creates new opportunities for market entry, but is associated with high standards regarding integrity, player protection, technical supervision, tax compliance and ongoing regulatory oversight. For providers not yet licensed, the draft legislation represents both an opportunity and a risk: The path to the legal market is being opened up, but only provided that historical tax liabilities and legal judgments are fully settled and unauthorised offerings are discontinued in a timely manner. For other market participants, in particular payment service providers, platform and infrastructure companies, and landlords, new compliance obligations and response deadlines will arise. The ongoing review and the parliamentary process should therefore be closely monitored.
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