Gambling In Austria: Is It Legal?

Gambling in Austria is regulated by the Austrian Gaming Act, which differentiates between 'games of chance' and 'betting'. Games of chance are defined as games where the outcome depends predominantly on chance, and are subject to a federal monopoly. Betting, meanwhile, is regulated by nine separate state betting laws and is defined as the placement of a bet on the outcome of a future event where the outcome does not predominantly depend on chance. The Gaming Act further differentiates between licences for lotteries, land-based casinos, electronic lotteries (online games of chance) and video lottery terminals (VLTs). The federal government holds a monopoly over games of chance, with licences available for lotteries, electronic lotteries and VLTs, as well as land-based casinos.

What is the legal definition of gambling in Austria?

The terms 'gambling' and 'gaming' are not recognised in Austrian law and can only be used as umbrella terms for the various types of legally defined activities. The Austrian legal system draws a fundamental distinction between 'games of chance' and 'betting'.

'Games of chance' are defined as games where the outcome depends exclusively or predominantly on chance. They are regulated under federal law through the Gaming Act and are subject to a federal monopoly. The Gaming Act differentiates between licences for 'lotteries' (games of chance), 'land-based casinos', 'electronic lotteries' (online games of chance) and 'video lottery terminals' (VLTs). 'Slot machines outside of land-based casinos' are exempt from the monopoly and licensing is transferred to the states. 'Free prize draws' are regulated by the Gaming Act in terms of their taxation. Skill games where the outcome does not depend on chance do not fall within the ambit of the federal monopoly.

'Betting' is regulated by nine separate state betting laws, so the legal definitions vary slightly. Generally, it is defined as the placement of a bet on the outcome of a future event where the outcome does not depend predominantly on chance, as players can use their knowledge to inform their decision-making, and this knowledge outweighs the element of chance. Betting is subcategorised into different forms, with 'sports betting' regulated by all nine state betting laws, and 'social betting' (e.g. bets on election outcomes) falling within the ambit of some state betting laws. 'Live betting' is prohibited in most states. 'Pool betting' is regulated in all nine state betting laws.

The Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch, “ABGB”) is the most important set of laws applicable to all types of gaming and betting activities. The federal Gambling Act (Glücksspielgesetz, “GSpG”) regulates games of chance and applies to lotteries, land-based casinos, online gambling and poker. According to Section 1 GSpG, a game of chance is a game "in which the decision on the outcome of the game depends solely or predominantly on chance". Sports betting is regulated at the level of the Bundesländer, with each state having its own local betting act and a local competent regulatory authority.

What legislation applies to gambling in Austria?

Gambling in Austria is regulated by the Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch, "ABGB"), the E-Commerce Act (E-Commerce Gesetz), the Unfair Competition Act (Bundesgesetz gegen den unlauteren Wettbewerb, "UWG"), the federal Gambling Act (Glücksspielgesetz, "GSpG"), and the Capital Markets Anti-Money Laundering Act (Finanzmarkt-Geldwäschegesetz, "FM-GWG").

The GSpG defines a game of chance as one in which the outcome depends "solely or predominantly on chance". It is subject to a federal monopoly and applies to lotteries, land-based casinos, online gambling, and poker. The GSpG also sets the framework for regulating slot machines at the level of the nine Austrian federal states (Bundesländer).

The UWG, based on the EU Unfair Commercial Practices Directive, contains a blacklist of trade practices prohibited in the gambling and betting sector. It also sets limitations for operators, such as prohibiting advertising directed at minors and promotional pyramid schemes.

The FM-GWG, last updated in 2021, addresses anti-money laundering provisions.

The Austrian Criminal Code (Strafgesetzbuch, "StGB") includes a prohibition on organising and promoting gambling without a licence.

Traditional sports betting services fall within the remit of the Federal States of Austria (regional governments).

Which bodies regulate gambling in Austria?

Gambling in Austria is regulated by the Austrian Ministry of Finance (Bundesministerium für Finanzen, "BMF") and the Austrian Tax Office (Finanzamt Österreich). The BMF and the Austrian Tax Office are responsible for casino gaming, including slots and table games such as roulette and blackjack. They also regulate sports and horse race betting, although each of the nine Austrian federal states (Bundesländer) has its own local betting act and a local competent regulatory authority.

The Austrian federal states play a significant role in regulating gambling. While the BMF and the Austrian Tax Office oversee casino gaming, the individual state governments regulate land-based gambling machines ("Landesausspielungen") and betting. The competent regulator for Landesausspielungen is the respective state government of the five states that permit this form of gambling: Lower Austria, Upper Austria, Burgenland, Carinthia, and Styria.

Betting, on the other hand, is regulated by the state governments of all nine Austrian states through their separate state betting laws.

The enforcement of penalties for administrative offences related to violations of gambling regulations falls under the purview of the competent district administrative authorities.

Additionally, the Austrian Gambling Regulatory Authority is responsible for preventing addiction and offering addiction advice. This body works closely with the Staff Unit for Addiction Prevention and Counselling, which operates under the Federal Ministry of Finance.

Are licences available for gambling in Austria?

Gambling in Austria is regulated by the Law on Games of Chance (GSpG) and falls under the remit of the Ministry of Finance. The GSpG defines a game of chance as one in which the outcome depends "solely or predominantly on chance".

There are two types of B2C licences available for gambling in Austria:

• Lottery licence: The lottery licence covers all stationary lottery offerings, electronic lotteries (i.e. online games of chance) and video lottery terminals (VLTs). Only one licence is available, and it is currently held by Österreichische Lotterien GmbH. The licence is valid until 30 September 2027.
• Casino licence: The casino licence covers land-based casinos in Austria. A maximum of 15 licences are available, each with a duration of 15 years. Twelve licences have been granted to Casinos Austria AG, while the remaining three have been revoked. It is unclear if or when these three licences will be retendered.

In addition, gambling machines (known as Landesausspielungen) are regulated at the state level, with five out of nine Austrian states choosing to permit this type of gambling. Licences for these are issued by the respective state government and are limited to a maximum of three per state, with durations ranging from 10 to 15 years.

Sports betting is also regulated at the state level, with nine separate state betting laws. There are no quantitative restrictions on the number of licences, and applicants have the right to be granted a licence after fulfilling all legal requirements. Licences may be granted to both individuals and legal entities.

The regulatory regime does not typically require licences for business-to-business (B2B) providers. However, specific hardware and software requirements must be met for gambling machines and VLTs.

To obtain a licence for lotteries or land-based casinos, applicants must be corporations located in EU or EEA member states and meet certain capital requirements. Managing directors must demonstrate professional suitability and experience, while individuals with controlling shares must meet reliability and compliance standards. A security deposit of at least 10% of the share capital is also required.

The licensing process for sports betting and Landesausspielungen varies from state to state. However, applicants must generally meet reliability and professional qualification standards and submit suitable concepts for player protection, protection of minors, and anti-money laundering measures.

Are any types of gambling products prohibited in Austria?

In Austria, the term 'gambling' is not used in the legal system and can only be used as an umbrella term for the various types of legally defined activities. The Austrian law differentiates between 'games of chance' and 'betting'. Games of chance are defined as games where the outcome depends on chance rather than a player's knowledge or skill.

Games of chance are generally subject to a federal monopoly and regulated under federal law through the Gaming Act (GSpG). According to the Gaming Act, games of chance for which no license has been granted and which are not exempt from the federal monopoly are prohibited. The Austrian Ministry of Finance and the Austrian Tax Office are responsible for supervising licensed companies and enforcing the gambling law.

Betting, on the other hand, is regulated at the state level through nine separate state betting laws. The exact restrictions on betting vary from state to state, but generally include prohibitions on bets with high stakes, bets that violate general moral feelings, bets on amateur competitions, bets on events with child participants, and live bets.

In addition to the federal and state regulations, there are also local laws in each of the nine Austrian federal states (Bundesländer) that impose further restrictions on gambling activities. For example, not all Bundesländer allow slot machines outside of casinos.

While there is no nationwide definition of betting in Austria, it is generally understood as placing a wager on the outcome of a future event where the outcome does not predominantly depend on chance but rather on the player's knowledge. The Austrian Civil Code defines a bet as an agreement between two parties on a certain price for an unknown event.

Overall, the legality of gambling in Austria depends on the type of gambling product offered and the relevant federal, state, and local regulations.

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