Austria Faces Pressure from EGBA to Give Up Gambling Monopoly

By Silvia Pavlof

Austria Faces Pressure from EGBA to Give Up Gambling Monopoly

EGBA has highlighted the rapidly growing black market in Austria as evidence of the system's shortcomings

The European Gaming and Betting Association (EGBA) is pushing Austria to change its online gambling rules. They want the country to move away from its current monopoly setup and adopt a modern system with multiple licenses.

Austria and Poland are the only countries left in the European Union that still use this old-fashioned model. The EGBA thinks this system does not do enough to protect consumers, regulate, or boost the economy. They believe it is time for Austria to catch up with today's standards in the gambling industry.

The association has pointed to Austria's booming black market to show the system's flaws. Many Austrian gamblers now use unregulated offshore sites, which skip local consumer protections and avoid government checks. This also means the state loses a lot of money. Some think that using a multi-licensing system could bring in up to €1 billion ($1 billion) more in taxes by 2030.

As coalition talks for a new government continue, the EGBA has called on Chancellor Karl Nehammer, Andreas Babler, and Beate Meinl-Reisinger to take this chance to update Austria's gambling rules. The group points out how well similar changes have worked in other EU nations, like Denmark and Sweden. Denmark brought in multi-licensing in 2012, and within ten years, the regulated part of its online gambling market grew from 72% to 90%. These systems have gotten credit for making consumer safeguards better, boosting regulatory abilities, and increasing tax income.

The EGBA claims that moving to a multi-licensing system would give Austria several advantages. By putting rules on a bigger part of the gambling market, officials could put in place tools like self-exclusion systems and rules for responsible ads giving players better protection.

Additionally, a new regulatory setup could lead to more effective market oversight by setting up an independent body with the power to enforce rules. The group also suggests a tax system based on gross gaming revenue that would boost state income while helping licensed operators stay competitive with offshore sites that are not regulated.

EGBA Secretary General Maarten Haijer pointed out that the facts support change across Europe. He described multi-licensing as a tested way to regulate gambling, safeguard consumers, and create big economic gains. He noted that the current talks give Austria a key chance to update its gambling laws to match successful European examples.

The push for change happens as Austria's political heads try to form a coalition government after the September vote. The EGBA's plan puts more heat on negotiators to fix long-standing problems in the country's gambling sector. It is not clear if Austria will take this chance to update how it regulates gambling, but the debate marks a turning point for the future of its gambling industry.

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