Casinos Austria may bear the brunt of a proposed betting tax increase in the country, the company’s boss has cautioned
As Austria is seeking to fund its budget it has chosen a downtrodden path, with the country proposing and soon to enact a betting tax that will increase from the current 2% to 5%. According to Casinos Austria General Director Erwin van Lambaart, this will expose land-based gambling halls and properties to financial hardship and lead to closures and job losses.
Casinos Austria Brace for Tax Hike
Apart from the 5% on betting, another 10% gabling tax is also being discussed, with the ultimate goal being to add to the public purse and help mitigate public spending. Casinos Austria is not shielded by the impact the expected taxes would have on its operations with five properties at a risk of closure, van Lambaart warned.
Specifically, van Lambaart spoke about closures affecting 30% to 40% of the company’s properties in the country – 12 locations at present. In a translated statement, he said:
“Our group of companies will be strongly attacked if all this is implemented. We will be losing so much money that the continuity of the company would potentially be at risk. If an increase in gambling tax of more than ten percent comes, there will no longer be some smaller businesses. There will potentially be a few fewer casinos in the country.”
The increase to a 5% betting tax should happen on April 1, 2025, while the subsequent 10% gambling tax is yet to be implemented. The goal is to contribute €150 million ($162 million) in fresh revenue to the country’s budget.
Country May Need to Revisit Gambling Model
Austria is also facing pressure from the European Union to harmonize its regulations with the rest of the member states. The European Gaming and Betting Association has cautioned the country against a sprawling black market that continues to secure market share from legitimate businesses.
Casinos Austria is the sole gambling entity in the country and it currently operates under a 15-year license which is due to expire on September 30, 2027. Observers have called for Austria to break away with this model and allow more licensees to enter the market in a bid to strengthen its resilience and competitiveness.
