Poker Over 13th Casino License in Austria: New Rules and Criticism of Bundled Tenders

A massive upheaval is brewing in the Austrian casino market. The federal government, under Finance Minister Markus Marterbauer, is preparing a re-tender of concessions that goes far beyond a mere extension of existing licenses. Currently, the incumbent Casinos Austria (CASAG) controls the market with twelve locations divided into a city package and a rural package. However, with contracts set to expire in 2027 and 2030, the landscape is about to change. The plan involves not just liberalization but also the creation of a 13th location, which is drawing both interest and criticism. Vienna is considered a top candidate for this additional casino, but Burgenland is also being discussed as a strategic site for cross-border tourism.

The political tug-of-war primarily revolves around the method of awarding licenses. The Ministry of Finance is sticking to the bundling of licenses into packages. The official justification is that this ensures the survival of less profitable locations in rural regions. The aim is to prevent applicants from "cherry-picking" only the most lucrative sites. However, this meets significant resistance from supervisory authorities and competitors. The Financial Procuratorate is already warning of a high risk of legal appeals, as packages naturally carry unattractive locations, potentially distorting fair competition.

Numbers and facts

A look at the raw numbers highlights the economic stakes. The most profitable casino in the country is currently located in Bregenz, largely due to wealthy players from Germany, Liechtenstein, and Switzerland. It is followed directly by the Vienna Kärntnerstraße location. To open the market to new players, the current draft bill envisions a significant lowering of barriers. The required share capital for a casino is to be reduced from 22 million euros to 10 million euros. Theoretically, this could allow smaller Austrian entrepreneurs to enter the ring for the first time, provided they are not blocked by the package awarding system.

Niklas Sattler, managing director of the consultancy Aleatrust and a former manager at Casinos Austria, is critical of the package solution. He believes that only individual tenders can guarantee true fairness. Sattler argues that the regions of Vienna, Lower Austria, and Burgenland account for about 40 percent of the population but currently only have two locations. He calls for a better distribution and warns that the reduction in share capital will remain ineffective if one is forced to take over an entire bundle of gaming venues at once.

"If it is then awarded in a package after all, this opening was never meant seriously." - Niklas Sattler, Managing Director of Aleatrust

Background

Criticism of package awarding is not new. As early as 2016, the Court of Audit reprimanded the Ministry of Finance because it could not prove an optimal spatial distribution of concessions from a regulatory perspective. To avoid such accusations in the future, the ministry now plans a scientific study. Following the passage of the new gambling law, an objective study with transparent criteria will be conducted to justify the locations based on facts. Factors such as population density, tourism potential, and socio-economic conditions will be in focus. Player protection is also cited as an argument, as a state-controlled expansion of the legal offering could curb "gambling tourism" to neighboring countries with less stringent rules.

The current monopolist also has clear positions. Patrick Minar, spokesperson for Casinos Austria, emphasizes the necessity of packages to prevent ruinous competition and aggressive marketing. Excessive competitive pressure could jeopardize player protection. The debate illustrates the deep rift between the desire for market opening and the adherence to proven but monopoly-like structures.

Why it matters for German players

For German casino fans, especially those from southern Germany, Austria remains an attractive but regulatorily separate destination. While the Interstate Treaty on Gambling 2021 (GlüStV 2021) governs with strict limits in Germany, different rules apply in Austrian casinos. In Germany, the Joint Gambling Authority of the States (GGL) ensures compliance with the whitelist. Here, online players must deal with a cross-provider deposit limit of 1,000 euros per month and a 1-euro limit per spin on slots. Systems like LUGAS and OASIS strictly monitor these boundaries. The planned changes in Austria primarily affect land-based gaming, but the high standards of player protection there are a direct reflection of European efforts to organize the market. German cross-border commuters visiting the casino in Bregenz will still be able to enjoy the atmosphere there but must be aware that legal certainty and player protection in Germany are handled at a different, centralized level through GGL licensing.

What it means for GGL-licensed casinos

Casinos with a German GGL license operate in one of the safest but most heavily regulated environments worldwide. The developments in Austria show that neighboring countries are also trying to balance an attractive market with strict control. For providers on the German whitelist, the stability of GlüStV 2021 provides planning security, while in Austria, significant political and legal uncertainties remain due to the package awarding and the potential 13th license. German operators, with their experience in strict limits and LUGAS integration, can position themselves as pioneers in responsible gambling, which can be a long-term competitive advantage over less strictly regulated markets in Eastern Europe or MGA providers.