Political leaders from several Austrian federal states have warned that proposed reductions to slot machine limits under the country's Gambling Act could weaken player protection, reduce tax revenues and drive players towards illegal gambling operators.
Negotiations over Austria's Gambling Act are ongoing, with discussions continuing around the future of so-called "small-scale gambling," which covers slot machine operations regulated at the state level. All states except Vienna, Tyrol and Vorarlberg currently permit this form of gambling.
Under the current draft, limits on these games would be significantly reduced. The maximum stake per game would fall from €10 to €2, while the maximum potential win would be reduced from €10,000 to €2,000.
Industry stakeholders have criticised the proposals, warning that they could make legal operations unprofitable and push more players towards the black market.
The measures have also drawn criticism from regional politicians, who argue that making regulated products less attractive could encourage consumers to seek out unlicensed alternatives.
Among those raising concerns are Salzburg Deputy Governor Marlene Svazek, Styria Governor Mario Kunasek and Upper Austria Governor Thomas Stelzer.
Kunasek said: "When planning the new gambling law, the federal Government must pay very close attention to ensuring that player protection is not compromised and that players are not forced into the illegal market, which would also have serious consequences for tax revenues."
Meanwhile, Salzburg presents a unique situation, as ‘’small-scale gambling’’ is currently being introduced in the state. As a result, regional officials argue that the proposed reforms could undermine the sector before it has the opportunity to establish itself.
The financial implications for the states are also significant. Gambling machines generate around €35m annually for Austria's federal states, with the largest shares flowing to Lower Austria, Styria and Upper Austria. Lower Austria alone receives more than €14m per year.
Under the draft Gambling Act amendment, state-owned Win2Day would lose its exclusive online casino monopoly.
Sports betting will likely still be classified as a game of skill, rather than gambling, meaning it will remain outside a unified federal framework and continue to be regulated at the state level
