Online gambling legislation in Austria

A landlocked European country of Austria is the 12th richest country in the world in tems of Gross domestic product per capita. It is proud of a well-developed social market economy and high living standards.

Being a part of its economic and legal sector gambling in Austria is legal and strictly regulated by the government and the European Commission. It concerns different forms of land-based and Internet-based gambling, including Internet betting in Austria.

The uniqueness of the regulation system on gambling in the country is that the law differentiates between «proper» and «little» gambling. Proper gambling involves large financial transactions and is allowed only in casinos. Little gambling may take place anywhere because it covers any game with a wager even less than 50 cents, for example, slot machines, low-stakes card games, etc.

As far as online gambling legislation in Austria is concerned, there is a number of restrictions to follow. Accordingly, the government issues online gambling licenses in Austria for companies within the country, but the web sites can accept Austrian players only. On the other hand, Austrian citizens can participate in internet gambling both on the Austrian and international web sites. Twofold situation emerges in advertising as well – Austria-licensed companies, but not foreign-licensed ones, are permitted to conduct advertizing campaigns in the country.

Some of Europe's biggest and most profitable internet gambling companies are rooted in Austria, even though their "official" headquarters are located in other offshore jurisdictions.

Confusing and unique Austrian legislation of internet gambling does not reduce the amount of Austrian gamblers, but provides food for thought to the government in terms of national system regulation.

In June 2010 Austria's National Assembly passed a new gambling law that is criticized for the rigorous norms. According to the law, it would be more difficult to obtain a gambling license and there would be strict regulations on where slot machines are allowed and the number of machines that can be operated.

However, the new law opens up the whole country to slot machines, as previously they could be operated in only four provinces - the capital Vienna, Styria, Carinthia and Lower Austria.

The number of casino licenses was also raised from 12 to 15 under the new law, and stakes and prizes were limited to a maximum of €10 and a maximum prize of €10,000.

Moreover, the new regulation touches upon geographical factor. Thus, arcade licenses limited to one for every 1,200 people (or one for every 600 in Vienna), and a minimum distance of 15 kilometers between each arcade (or 2km in Vienna).

To get additional information on online gambling laws in Austria, please, contact the following authorities:

1. Dr. Klaus Oblin, LLM (Rechtsanwalt / Attorney-at-Law)

Josefstädter Straße 11
Vienna 1080, Austria

Tel: +43 1 505 3705
Fax: +43 1 505 3705-10
Website: www.oblin.at
Main Contact: office@oblin.at

2. Kerres Partners Rechtsanwälte Attorneys-at-Law

Attorneys in Vienna, Austria
Leading Austrian Law Firm for International Clients
Schubertring 2
Vienna 1010, Austria

Tel: +43 1 516 60 - 0
Fax: +43 1 516 60 60

3. Law Offices Dr. F. Schwank

Attorneys in Vienna, Austria
Representing Foreign Interests in Austria
Stock Exchange Building
Wipplingerstrasse 34/101
Vienna A-1010
Austria

Tel: +43 1 533 5704
Fax: +43 1 533 5706