Federal Ministry of Finance of Austria

Gambling in Austria, namely casinos and lotteries, is regulated by the Gambling Act (GSpG). The Ministry of Finance is the main controlling and supervisory authority. It is also the responsible authority for supervising licensed companies. The law also defines which games are considered gambling.

In general, the country has a gambling monopoly. The few exceptions to this monopoly (certain types of betting, low stakes gambling and games of skill) are partially regulated by the Austrian federal states and their various regional laws.

Gambling within Austria provided by companies licensed in other jurisdictions is prohibited. This also applies to gambling provided through electronic media (Internet) offered internationally. These games are subject to a national monopoly and cannot be advertised or made available to Austrian residents.

Interference with the monopoly is punishable by civil law or administrative penalties of the Gambling Act.

Licensing of betting on traditional sports is the responsibility of the Austrian federal states (regional authorities).

Regulator licensed casinos

Federal Ministry of Finance of Austria review

The Ministry of Finance supervises gambling. In its work, it uses the basic document, the Austrian Federal Constitution. Gambling is regulated by the law "On the Regulation of Gambling (Gambling Act—GSpG)," adopted on November 28, 1989. This law has been amended several times since then.

A major addition was adopted on January 1, 2011.

From then on, the regulatory and supervisory functions of the gambling industry are the responsibility of the "Tax Administration for Duties, Operating Taxes and Gambling". Abbreviated FAGVG (Finanzamt für Gebühren, Verkehrsteuern und Glücksspiel).

This organization was the first and so far the only tax authority organized at the federal level. Unlike tax authorities with general tasks, the FAGVG does not belong to any particular region. That is, it is not subordinate to the regional administration. It is under the direct control of the Federal Ministry of Finance. Thus, the Ministry still remains the main supervisory body in the gambling industry.

The FAGVG is headquartered in Vienna, with additional offices in Feldkirch, Innsbruck, Salzburg, Linz, Graz and Klagenfurt.

The FAGVG's tasks include the collection of various taxes. For example: capital tax, land transfer tax, insurance tax, fire protection tax. Including casino tax and gambling fees. The FAGVG currently has about 230 employees.

The Financial Police also controls gambling in Austria. This organization's main tasks are tax supervision (supervision and control for the purpose of tax collection) and compliance with the Gambling Act (Glücksspielgesetz).

The purpose of combining these measures in the financial police is to make the necessary actions more relevant and faster.

To promptly identify and assess violations. This organization has been independent since July 1, 2013. It is based in Vienna and has offices at the headquarters of each tax office.

Gambling-related tasks:

1. Detection of violations of the Gambling Act
2. Inspection of commercial premises and operating facilities, as well as premises and accounting and custody obligations in accordance with the provisions of the Austrian Gambling Act (Glücksspielgesetz, GSpG)
3. Temporary suspension of the operation of non-legal gambling halls
4. Presentation of the authority

In accordance with changes to the Gambling Act, a department for the prevention and advice on gambling addiction was established in the Federal Ministry of Finance (Personnel Division for Addiction Prevention and Counseling) after December 1, 2010.

It is dedicated to educating citizens about the harms of gambling. In accordance with Austrian law, it is engaged in developing preventive measures to combat and help gambling addicts. It also provides technical support to the Austrian gambling regulator.

The tasks of the addiction prevention and counseling staff department are as follows:

• Creating improved systems regarding the treatment and counseling of gambling addicts through Austrian institutions;
• Researching gambling addiction;
• Educating and informing people about the risks associated with gambling;
• Improving the coordination of individual gambling protection organizations;
• Creating and presenting better models for collaboration between gaming licensees, permit holders, and independent gambling protection organizations;
• Developing common quality standards for gambling protection;
• Technical evaluation of federal license holders' gambling protection concepts.
• Collaboration with Federal ministries and provinces that continue to be responsible for gambling protection.

Relevant to the regulation of online gambling. Things are pretty tough here. Online casinos are banned in the country if they do not have the appropriate gambling license issued by the Austrian regulatory body.

But that doesn't mean that residents can't play video pokies via the internet. There is a website, www.win2day.at. Which accepts Austrian players. And this has caused a negative response from the Casinoz team!

Let's explain:

In the country's legislation, online casinos fall under the definition of "electronic lotteries".

And is actually licensed. However, it is impossible to obtain a license, as there is only one company, Österreichische Lotterien GmbH, which has a gambling license for online casinos.

License types of Federal Ministry of Finance of Austria

There are four types of licenses:

• Lotterie - a license to conduct lotteries.
• Casino - a license to open a land-based casino.
• Spielautomatenhallen - license for pokie machine halls.
• Sportwetten - license for sports betting.

All licenses are valid for 15 years. Except for sports betting, as the local authorities issue it. It means opening a small betting shop.

Companies with an authorized capital of at least 22 million Euros can pass the licensing procedure. There is an application fee of 10 to 100 thousand Euros. After obtaining a license, companies will be required to pay the following taxes:

• Land-based casinos - 30%
• Lotteries - 2 to 27%
• Online casinos - 40%
• Sports betting - 2%

The Casinoz team draws your attention to the fact that virtually all major licenses are monopolized. That is, they belong to two companies. For example, no more than 15 casino licenses can be issued. And in fact, 12 of them have already been issued to one company.

Dispute resolution

Conclusion

The Austrian regulator has caused us contradictory feelings. On the one hand, gambling legislation is monitored quite strictly by several organizations. On the other hand, the lack of attention to player protection in terms of resolving disputes is alarming. But the most annoying thing is the fact that there is a monopoly on the gambling business—and this in a country that is a member of the European Union.

By the way, the latter has already made "remarks" about the legislation in this direction. Although perhaps this way of regulation is the most effective when you need to control just one organization, Casinoz believes that in a comprehensive comparison, this approach to regulation is not complete.