Criticism Mounts Over Austria’s Planned Casino Concession Awards

Financial Procuratorate Questions Bundling Strategy

Austria’s upcoming casino concession tender is already generating controversy ahead of the implementation of the country’s new gambling legislation. The Ministry of Finance intends to award the concessions in two packages, a strategy that the Financial Procuratorate considers potentially problematic.

The tender will cover 12 existing casino locations, several of whose concessions are set to expire at the end of 2027 or 2030. An additional casino location is also planned.

According to reporting by Kurier, the Financial Procuratorate has warned that grouping profitable and less attractive locations together could increase the likelihood of objections and legal challenges during the award process.

Bregenz is reportedly Austria’s most profitable casino, supported in part by customers from Germany, Liechtenstein and Switzerland. Vienna ranks second in terms of profitability.

Previous Tender Process Faced Audit Criticism

The previous operating licenses were awarded through two packages: a city package and a regional package.

The city package included casinos in Vienna, Linz, Salzburg, Graz, Innsbruck and Bregenz. The regional package covered Baden, Kitzbühel, Kleinwalsertal, Seefeld, Velden and Zell am See.

Austria’s Court of Audit criticized the tender process in its 2016 report. Among other concerns, the institution stated that the Ministry of Finance had not demonstrated an optimal geographical distribution of concessions from a regulatory perspective or a clear delimitation of the packages.

The ministry now intends to introduce a more structured approach for the upcoming tender.

Ministry Promises Transparent Evaluation Criteria

The Ministry of Finance, led by Markus Marterbauer of the SPÖ, plans to commission an objective study following the adoption of the new legislation.

“After the adoption of the law, an objective study with transparent and clear criteria will be carried out, which examines various characteristics. On the basis of this study, factually justified packages are put out to tender,” the ministry stated.

The proposed bundling system is intended to prevent operators from selecting only the most profitable casino locations.

Casinos Austria spokesperson Patrick Minar explained the rationale behind the approach:

“Cherry-picking must be prevented. Otherwise, there are only interested parties for Vienna and Bregenz, but not for less profitable casinos.”

However, the proposal has attracted criticism from industry representatives who believe that packaging the concessions could limit competition.

Reduced Capital Requirement Could Open Market

The current draft of Austria’s Gambling Act proposes reducing the minimum share capital required to operate a casino from €22 million to €10 million.

Niklas Sattler, managing director of consulting firm Aleatrust, said the change could create opportunities for Austrian businesses to enter the market.

“This could be the first time that Austrian entrepreneurs could compete,” Sattler said. “But if it is then awarded in a package, this opening was never meant seriously.”

His comments highlight the tension between lowering market-entry barriers and bundling concessions in a way that may require greater financial resources from prospective operators.

Vienna Considered for 13th Casino Location

The possibility of a 13th casino location has also emerged as part of the planned regulatory changes.

According to Kurier, the new venue could be located in Vienna. The Ministry of Finance reportedly considers a second location in the capital appropriate.

However, business circles cited by the publication have also raised the possibility of establishing a casino in Burgenland, a region close to Austria’s international borders.

Sattler has supported the idea of expanding casino availability in eastern Austria, pointing to the population concentration in Vienna, Lower Austria and Burgenland.

“Vienna, Lower Austria and Burgenland make up forty percent of the population and have two casino locations (with the casinos in Vienna and in Baden near Vienna, note),” Sattler said.

Cross-Border Gambling and Player Protection

The discussion surrounding a potential casino in Burgenland also includes economic and regulatory considerations.

Casinos located near Austria’s borders could attract customers from neighboring countries, where gambling regulations differ. According to the report, these regulatory differences may contribute to gambling tourism involving Austrian players traveling abroad.

Proponents of an additional location argue that a border-region casino could generate additional tax revenue while also supporting player protection objectives through regulated gambling environments.

The final structure of the concession packages, the location of any new casino and the eligibility requirements for operators will depend on the outcome of the legislative process and the Ministry of Finance’s subsequent study.