Casinos Austria Announces Upcoming Closure Due to Increased Taxation
The Austrian government has announced a significant change in the country's gambling regulations, with a notable increase in betting taxes set to take effect in April 2025. The sports betting tax will rise from 2% to 5% of gross revenue.
This move, part of a broader regulatory shift, has raised concerns within the gambling industry. Experts warn that higher taxes could stifle growth, drive customers to unregulated offshore operators, and potentially reduce revenues, which in turn could jeopardize employment stability.
In other markets, similar tax hikes have prompted pushback from the industry, citing economic risks and potential negative impacts on jobs and market health.
Despite a robust and growing gambling market in Austria, forecasted to reach €777 million in online gambling revenue by 2029, the steep tax increase could potentially dampen this growth and challenge licensed operators, including Casinos Austria. The operator, which currently operates 12 locations in Austria, could face financial pressure and potential job losses if it responds to reduced margins by restructuring or downsizing.
Erwin van Lambaart, General Director of Casinos Austria, has warned that the expected taxes could lead to closures of up to 5 properties, with as many as 30% to 40% of Casinos Austria's properties in Austria potentially affected.
The European Gaming and Betting Association has expressed concern over the growth of the black market in Austria, highlighting the potential risks associated with unregulated gambling.
In addition, Austria is under pressure from the European Union to harmonize its gambling regulations with other member states. Some observers are advocating for Austria to allow more licensees in the gambling market to increase its resilience and competitiveness.
The ultimate goal of the proposed tax increases is to generate €150 million ($162 million) in fresh revenue for the country's budget, aimed at mitigating public spending. However, the precise employment impact figures for 2025 are not publicly available in the search data.
The current model of Casinos Austria being the sole gambling entity in the country is due for reconsideration, with some advocating for a more competitive market to ensure the industry's long-term sustainability.
The proposed tax increases in the gambling industry are causing concern for Casinos Austria, as the operator might face financial pressure due to reduced margins and potential job losses if it responds to the steep increase by restructuring or downsizing. With a growing online gambling market forecasted to reach €777 million in Austria by 2029, the increased taxes could potentially challenge licensed operators like Casinos Austria and stimulate the growth of the black market, as highlighted by the European Gaming and Betting Association.
