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Austria Gambling Law Overhaul; Allwyn & Betsson M&A News

Austria Gambling Law Overhaul; Allwyn & Betsson M&A News

Austria has formally submitted its draft Austria gambling law to the European Commission, initiating a major market overhaul toward an open licensing system. This week's news also covers major industry moves, including Betsson completing its Canadian acquisition of Rhino Entertainment, Allwyn's digital CEO discussing future M&A, and a key leadership change at the UK Gambling Commission.

Austria Proposes Major Gambling Market Reforms

Austria's Ministry of Finance has advanced a comprehensive new Austria gambling law by submitting it to the European Commission. This step triggers a mandatory three-month standstill period, allowing the Commission to review the proposal for any conflicts with single market or state aid rules. The reform is one of the most significant in the country's recent history, aiming to modernize licensing and enhance player protection.

A key feature of the draft law is the introduction of a national exclusion register. This system will consolidate self-exclusions and operator-imposed bans across all verticals, including casinos, slots, and online platforms. The goal is to prevent at-risk players from simply moving to another operator to bypass restrictions.

The legislation also mandates specific deposit limits for online gambling and slot machines. Notably, it imposes stricter, lower limits for young adults aged 18 to 26, a measure targeting a more vulnerable demographic. Further protections include lower maximum stakes, slower game speeds for slots, and a compulsory cooling-off break after 90 minutes of continuous play.

Navigating the Transition to an Open Market

The new Austria gambling law paves the way for an open licensing model for online operators, but with strict transitional rules. Operators currently providing services without a license must cease their Austrian operations by January 1, 2027, to be eligible for a new license. Non-compliance will result in an 18-month waiting period, which increases to 24 months from 2030.

"Given how slow political processes in Austria can be, I’m sceptical about whether they will be able to hand out licences within 12 months. Especially since I don’t expect them to begin before the law actually comes into force." - Felix Geyer, Political Analyst

The Austrian Betting and Gaming Association (OVWG) has expressed skepticism, predicting that these measures might inadvertently benefit the black market rather than channeling players to legal options. To combat this, the framework includes enforcement tools like payment blocking and network blacklisting to restrict illegal operators.

Casino Licensing and Industry Concerns

For land-based casinos, the law proposes a maximum of 13 licenses, which may be allocated in packages to ensure balanced geographical distribution and prevent excessive competition. This approach has drawn criticism. Former Casinos Austria employee Niklas Sattler argued that individual concessions would be a fairer way to open the market, suggesting the current plan could shut out smaller players and favor large corporations.

FeatureCurrent Austrian FrameworkProposed Austrian Gambling Law
Online LicensingState MonopolyOpen Licensing with Transitional Rules
Player ProtectionLimited, operator-specific toolsNational Exclusion Register, Age-based Deposit Limits
EnforcementLimited tools against illegal operatorsPayment Blocking, Blacklisting, Network Blocking
Casino LicensesMonopoly held by Casinos AustriaMaximum of 13 licenses, sold in packages

Corporate Strategy and M&A Activity Heats Up

In the wider iGaming regulation and business landscape, several major companies are making strategic moves through mergers, acquisitions, and partnerships. These developments signal a dynamic period of consolidation and expansion across different markets.

Allwyn Eyes Further M&A Without Rushing

Kresimir Spajic, the digital CEO of Allwyn, confirmed the company has several M&A discussions in the pipeline but feels no pressure to close a deal quickly. Following major moves like its merger with Greek lottery giant OPAP and the $1.6 billion acquisition of PrizePicks, Allwyn is focused on finding the right strategic fit. Spajic stated the goal is to become a leading global digital entertainment company.

Spajic also commented on the withdrawn acquisition of Novibet, explaining that remedies proposed by the Hellenic Competition Commission failed to maintain the transaction's value. He added that Allwyn M&A strategy includes both tuck-in acquisitions for technical capabilities and larger moves into new or underdeveloped markets.

Betsson Completes Canadian Acquisition

Betsson has finalized its acquisition of Rhino Entertainment Group’s B2C business in Canada for a total of €64.5m. The deal significantly expands Betsson's Canadian footprint, adding the CasinoDays brand to its existing Betsafe operations in Ontario. The acquisition includes the customer base, licenses, personnel, and proprietary technology, which Betsson plans to leverage for its B2B offerings.

UK Market Sees Regulatory and Commercial Shifts

The United Kingdom's gambling sector is also experiencing significant developments, from high-level appointments at its regulatory body to innovative new partnerships in the sports world.

UK Gambling Commission Undergoes Leadership Change

The UK Gambling Commission (GC) is navigating an unsettled period with the secondment of Sarah Fox from the DCMS. Fox, who has led the government's gambling and lotteries team, joins the GC's executive team following the recent departures of CEO Andrew Rhodes and executive director Tim Miller. Her arrival comes as the regulator faces scrutiny over its evidence-based policymaking and industry engagement, particularly concerning financial risk assessments.

Commentators like Vaughan Lewis suggest the move may be more of a civil service measure to ensure departmental alignment rather than a direct political intervention. However, Fox's deep experience with the gambling white paper places her at the center of the GC at a time when its accountability is under intense examination, especially amid friction with the British Horseracing Authority (BHA).

Winvia Entertainment Partners with Aston Villa

In commercial news, Winvia Entertainment has partnered with Premier League club Aston Villa to launch "Villa Win," an official club-branded prize draw. Winvia will provide the technology, operations, and regulatory oversight for the competition, which aims to boost fan engagement and open a new revenue stream for the club. This deal marks the first major B2B deployment of Winvia's BOTB prize-draw system and reflects the growing popularity of the prize draw vertical in the UK.

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Frequently Asked Questions

The new law introduces a national exclusion register to block players across all platforms, mandatory deposit limits with stricter rules for young adults (18-26), lower slot machine stakes, and a required 90-minute cooling-off period.

About the Editor

Ivan Potocki
Ivan PotockiChief iGaming Analyst & Senior Editor, CasinoPie