Gambling industry warns of tax increases in Austria
The gambling industry in Austria is facing major challenges. In the course of the current coalition negotiations between the ÖVP, SPÖ and NEOS, measures to stabilize the state budget are being discussed. A key point is an increase in taxes for various sectors of the economy - including gambling. Companies such as Casinos Austria and the Austrian Lotteries are sounding the alarm and warning of serious consequences for the entire sector.
In an open letter, they stress that drastic tax increases could endanger their existence. There is talk of possible closures of up to 40% of venues, which would not only cost jobs but also lead to falling tax revenues. The companies are particularly critical of the fact that such a measure could have a negative long-term impact on various areas - from sponsorship to social projects and the advertising industry.
High taxes despite economic importance
In their letter, Casinos Austria and the Austrian Lotteries point out the high economic importance of the industry for the state. In 2023 alone, 42,2 million euros in corporate profits were paid to the state. In addition, taxes and duties amounting to around 724 million euros were added. These sums show how much the state is already profiting from gambling.
Companies argue that an increase in taxes could potentially have the opposite effect: instead of increasing revenue through higher taxes, falling profits could lead to a shrinking tax base and ultimately less money flowing into the state coffers. Such an effect has already been observed in other countries where excessive taxation led to a shrinking market and a decline in tax revenue.
Impact of the Gambling Industry in Austria
If the planned tax increases are implemented, this could lead to numerous gaming venues having to close. According to estimates, between 30 and 40% of the locations would be affected, which would put hundreds of jobs at risk. The Austrian Lotteries' extensive distribution network could also be massively reduced. In their open letter, the gaming companies say that the number of acceptance points could possibly be halved in order to be able to operate economically despite higher taxes.
In addition to the direct impact on the gambling industry, there are numerous other sectors of the economy that would be indirectly affected. A reduction in sponsorship activities would put many sports clubs and cultural institutions in financial difficulties. In addition, media companies could suffer a loss of revenue, as gambling companies are traditionally large advertising customers.
search for a common solution
In view of the impending negative consequences, Casinos Austria and the Austrian Lotteries are appealing to politicians to work together to find a viable solution. They signal their willingness to take part in discussions to find a solution that both secures state finances and does not place an excessive burden on the gaming industry.
The discussion about the planned tax increases shows that economic policy measures often have far-reaching consequences. While the government is striving for stable budget management, companies are facing existential questions. It remains to be seen whether a compromise will be found. What is certain, however, is that the gambling industry in Austria is in a crucial phase.
