Austria’s gaming industry faces potential upheaval as Casinos Austria braces for significant operational changes due to upcoming tax increases. Erwin van Lambaart, the General Director of Casinos Austria, expressed concerns about the sustainability of their smaller casinos under the new fiscal policies enacted by the federal government.

Impact of increased taxes on casino operations:

Starting April 1, 2025, the betting tax will rise from 2% to 5%, with anticipated additional public revenue of €50 million. This increment is part of a broader government strategy to bolster public finances, which also includes a 10% hike in gambling taxes. Expected revenues from these adjustments are projected to reach €129 million in 2026, escalating to around €150 million by 2027 and stabilizing at €200 million annually by 2028/29.

Van Lambaart highlighted the detrimental effects these taxes could have, especially on Casinos Austria’s smaller venues, stating, “If everything goes as planned by the government, we would probably have to close 30 to 40 percent of our current locations.” The potential closures could predominantly affect casinos in regions like Zell am See, Kitzbühel, Seefeld, Kleinwalsertal, and Velden.

The government’s intention behind these reforms is to create a more stable and financially viable Austria. Van Lambaart, who also chairs the Austrian Lotteries, acknowledged the need for stability but criticized the approach for potentially jeopardizing the continuity of their operations.

In response to the government’s fiscal strategies, Casinos Austria may need to implement significant operational cutbacks. As reported by VIENNA.AT, this includes potentially halving sponsorships for sports, arts, and culture, reducing commissions for tobacconists, and slashing media cooperations. Such reductions would not only affect the company’s profitability but also have a broader cultural and economic impact on the communities they serve.

Broader implications and industry outlook:

The discussion extends beyond immediate financial impacts to broader concerns about the future of gambling in Austria. Analysts and stakeholders are scrutinizing the coalition government’s new agreement, pondering the potential for liberalization of online gambling—a market currently dominated by the state-run entity under a monopoly license set to expire in 2027.

Despite the government’s conservative stance with its recent tax hikes, the coalition agreement hints at possible regulatory changes that could introduce a more competitive market landscape. The agreement mentions the “further development of the gambling monopoly” and measures against illegal operations, suggesting an openness to reforming the current restrictive framework.

The Austrian gambling market stands at a crossroads, with the government’s policies poised to reshape the industry’s structure significantly. As the coalition government moves forward with its financial and regulatory reforms, the sector remains watchful and adaptive, preparing for a landscape that might soon welcome broader participation and innovation.