Austria Gambling Regulation

The Republic of Austria is a landlocked country in Europe that comprises nine federal provinces, locally known as Bundesländer. Like many other European countries, Austria has centuries-old gambling traditions that date back to the early 17th century.

With its growing popularity, gambling attracted the attention of local authorities. Austria became one of the first European countries to combat unregulated gambling. Emperor Leopold I passed legislation in 1696 criminalizing the activities of individuals involved in unlawful betting.

At the time, gambling was mainly regarded as a pastime for the poor and common folk. Things changed in the 18th century when the nobility also joined in. Gambling became a favored hobby of notable Austrians, such as the famed composer Wolfgang Amadeus Mozart and Maria Theresa, Archduchess of Austria.

The popularity of card and dice games rapidly increased. This growing popularity led to the introduction of various entry fees and taxes. The country introduced regulated sports betting in the summer of 1916 as a means to further boost state coffers through the collection of betting duties.

Gambling continues to be closely regulated in Austria to this day. Austrian gamblers have access to a broad range of legal gambling products, both online and land-based. Most of them, such as chance-based games, are controlled at the federal level. Others, such as sports betting, are subject to individual provincial regulations.

Laws that Govern Landbased Gambling in Austria

Austrian gamblers are provided with a broad choice of legal gambling options including casino games, sports betting, slots, poker, bingo, and lotteries. These are regulated both in a landbased and virtual format. Most gambling activities in the country are governed by the provisions of the Law on Games of Chance, or Glücksspielgesetz (GSpG).

The Austrian Law on Games of Chance (Glücksspielgesetz)

Slot Machine Restrictions under Glücksspielgesetz

Other Austrian Laws that Apply to Gambling

---

The Austrian Law on Games of Chance (Glücksspielgesetz)

GSpG applies on a federal level and regulates chance-based gambling products such as casino table games and lotteries. Poker also falls within its scope despite the fact it is considered a game of skill in many jurisdictions.

The GSpG also establishes a legal framework for the oversight of slot machines outside gambling venues at a provincial level in the nine Bundesländer. Sports wagering is regulated separately by the individual betting acts of each federal province.

Section 1 of Glücksspielgesetz defines chance games as those whose outcome is based predominantly or mostly on chance. Furthermore, they should be played for real-money stakes for the chance to win a monetary payout. Products that belong to this category according to GSpG include slots, roulette, number games like keno, bingo, and card games like baccarat, blackjack, and poker.

---

Slot Machine Restrictions under Glücksspielgesetz

Section 5 deals with slot machines in publicly accessible landbased premises and more specifically, with the maximum number of machines permitted. Restrictions on the number are in place as a preventive measure against gambling addiction. The GSpG stipulates that there should be no more than one slot per every 1,200 residents in each federal province.

The number of permits for the operation of such machines is restricted to three in each federal state. One exception to this rule is made for Vienna where the ratio is one slot machine per every 600 residents. This makes sense considering Vienna is the province with the densest population.

To receive a permit for the operation of slots, one must provide proof of a minimum share capital of €8,000 per machine. Section 5 also outlines the measures the operators of such machines should adopt to prevent problem gaming.

Employees should be trained to recognize the signs of gambling addiction so they can restrict the activities of players who visit slot parlors way too often. The payout ratio should be made available for each machine. The slots should have a theoretical return of at least 85% according to Section 5.

The paytables and the rules should be written in German so that all Austrian players can easily comprehend them. Gambling venues that house over 15 slot machines should be located at least 15 kilometers apart or 2 kilometers apart for areas with more than 500,000 residents. The machines enter a cool-off phase, i.e. switch off, after a person has played for two straight hours. Each player is restricted to no more than three hours of slot play per day (24 hours).

---

Other Austrian Laws that Apply to Gambling

The Austrian Civil Code, or Allgemeines Bürgerliches Gesetzbuch (ABGB) in German, is also applicable to gambling and betting activities operated in the country. The same goes for Austria’s Criminal Code, locally known as Strafgesetzbuch (StGB). In Section 168, it is explicitly stated that running or advertising gambling products and services without having the necessary permits from the Austrian authorities is against the law.

This applies to the organization of chance-based games, like those mentioned previously, where real-money is at stake. The organizers of unauthorized gambling are legally prosecuted and face jail time of up to six months or monetary sanctions in milder cases. The same applies to those who participate in unlicensed gambling on a commercial basis.

Such criminal offenses are also covered in Section 52 of the Glücksspielgesetz. It states that everyone who commits such an offense shall be punished by the Austrian authorities with monetary sanctions of up to €60,000. In milder cases, the violators face lower fines of €22,000.

Gambling Licensing Regime in Austria

The regulatory regime in Austria requires gambling operators to apply for licenses. The permits allow operators to advertise their services in the country provided they comply with certain policies and restrictions. The duration and expiration of each license are specific to the type of gambling product it covers.

Permits for land-based lottery operations were issued in 2012 and expire in 2027. The duration of permits for slot machines located outside gambling venues and for casino games is 15 years. The duration of sports betting licenses varies from one federal state to another. Another licensing condition is outlined in Section 21 of the Glücksspielgesetz, which requires each applicant to prove they have share capital of at least €22 million.

Applicants for casino and poker licenses must be members of the European Union (EU) or the European Economic Area (EEA). Upon submitting their documents, operators must pay an application fee of €10,000. Another fee of €100,000 is paid by approved operators upon license issuance.

Permits can be revoked in cases of serious violations of the licensing conditions. In milder cases, licensees face monetary sanctions of up to €22,000. The same fines apply to those who advertise unauthorized gambling in the country.

Revoking permits is a measure taken only as a last resort. Those who hold permits for slots located outside designated gambling venues (in restaurants, for instance) must comply with certain restrictions.

Maximum bets are limited to €1 in such places while those in casinos must not exceed €10 per spin. The maximum winnings per slot are restricted to €10,000 for casinos and €1,000 for slots operated outside casinos.

The machines must be programmed to switch off automatically once a customer plays for two hours straight. Online gambling operators can apply for single licenses that cover all products except those provided by the Austrian Lottery, which offers lotteries and scratch cards.

Taxes Imposed on Gambling Operators in Austria

It is expected that authorized gambling operators pay taxes to the Austrian authorities. The tax rates are product-specific. Those imposed on online gambling, also called “electronic lotteries,” are based on the gross gaming revenue (GGR) of the operators. The GGR is the overall money staked minus the payouts made to winners.

Licensed online gambling operators are taxed at a rate of 40% of their GGR, whereas land-based operators pay 30%, again based on GGR. Certain operations are taxed on the basis of their net gambling revenue (NGR).

Such is the case with slots and video lottery terminals (VLTs) operated outside designated gaming venues. Operators of such machines must pay 10% of their NGR on top of municipal fees. Online and brick-and-mortar sports betting operations incur a tax of 2% imposed on all stakes.

The Austrian government allocates around €80 million of sports betting tax revenue each year to promote sports in the country, in line with Sections 7 through 19 of the Federal Sports Promotion Act of 2013. Taxes on lottery games vary from as little as 2% to 27.5% of the stakes.

Player Protection and Gambling Regulators in Austria

Player Protection Measures in Austria

Austria Gambling Regulators

---

Player Protection Measures in Austria

Glücksspielgesetz includes several provisions that aim to establish socially responsible practices and reduce gambling-associated harms. The personnel of offline and online gambling operations should undergo special training that would enable employees to spot problem gamblers.

The betting acts of some of the federal provinces also include provisions for self-exclusion. Slot machines are programmed in such a way so as to automatically turn off after a specific period of time. This prevents players from overspending due to a lack of self-control.

In line with Section 25 (1) of Glücksspielgesetz, casinos should accept action only from individuals who have reached the legal gambling age of 18. Casino visitors are expected to provide proof of identity and age upon entering the premises.

Austrian legislation also includes measures to protect casino operators from cheating on behalf of patrons. Players are disallowed from using technology that would enable them to gain an advantage over the house under Section 25 (4). Finally, debts incurred through gambling are generally not enforceable in Austria under Section 1271 of the Civil Code.

---

Austria Gambling Regulators

The gambling industry on the territory of the Republic of Austria falls under the scope of the Ministry of Finance (in German Bundesministerium für Finanzen, or BMF). BMF has the remit to supervise the provision of chance games, placing particular stress on consumer and youth protection, the prevention of frauds, and the battle against problem gambling.

The Ministry oversees all licensed gambling businesses that operate in the country. In December 2010, a special entity, the Staff Unit for Addiction Prevention and Counselling, was created at BMF. It is tasked specifically with the reduction of gambling harm and the provision of assistance to problem gamblers.

The Unit also strives to educate and inform Austrian residents about the risks inherent to gambling participation. The Austrian Tax Office, on the other hand, is mandated with the collection of gambling-related taxes.

Closing Thoughts

Gambling in Austria is regulated at both the federal and provincial levels. While the legislation appears complex, it ensures a high level of security for local gamblers and allows them to choose from a wide variety of legal betting options. Online gaming laws largely coincide with those imposed on brick-and-mortar operations.

As with most laws, Austrian gambling legislation is subject to amendments over time. One example is the new Betting Act which came into force in Lower Austria in the summer of 2020.

The federal state of Burgenland is also expected to publish a new draft in 2021 to update its outdated betting act which dates back to 1919. SuperCasinoSites will keep you posted if any new amendments are made to the country’s current legislation.