Tax increase for sports betting in Austria by 150% planned
In Austria, sports betting providers may be facing a drastic cut. According to current information, the current legal transaction fee is to rise from 2% to 5% of gross betting stakes - an increase of 150%. The speed of implementation is particularly explosive: the new tax model could come into force as early as April 1, 2025. For many bookmakers, this change comes surprisingly quickly, as the government program originally planned for a gradual increase.
The industry is reacting with alarm. The Austrian Sports Betting Association (OSWV) is extremely critical of the short-term increase. Managing Director Sharif Shoukry warned that the industry has little time to adapt to the new conditions.
The rising costs not only threaten financial losses for the companies themselves, but also massive cuts in sponsorship money for sports clubs. Many clubs finance themselves in part through cooperation with betting providers, which is why a loss or reduction in sponsorship budgets could create large holes in the club's coffers.
However, the criticism is not limited to the sports betting association. Representatives of the gambling industry as a whole are also expressing concerns. They fear job losses and a possible migration of players to the grey or even black market if the offer in the regulated sector becomes too expensive or unattractive. From the government's point of view, the higher tax could offer significant additional revenue potential, which would not be unwelcome in times of tight budgets. In addition, some supporters argue that an increase in the tax could also strengthen player protection by encouraging more intensive control and regulation.
Possible consequences for sport and the economy
The planned tax increase will not only affect sports betting providers, but could also have an impact on numerous sectors of the economy. In Austria, sponsoring sporting events, clubs and even individual athletes is an established practice from which both professionals and amateur clubs benefit. If betting providers now incur significant additional expenditure, it is to be expected that sponsorship activities will be reduced. Smaller clubs in particular, which are heavily dependent on this income, could get into financial difficulties as a result.
In Great Britain, the Remote Gaming Duty and other gambling taxes have been increased several times in recent years, which in some cases led to a consolidation process among providers. There, too, sponsorship activities and bonus offers came into focus in order to offset the resulting additional costs. tax increase in the Netherlands has put many casinos in a fight for survival.
If Austria does indeed raise the tax rate from 2% to 5% within a few weeks, there is likely to be a similarly rapid reaction. Some providers could change their quotas, reduce bonus campaigns or reconsider entering the Austrian market. Others may see no other option than to lay off staff to compensate for the additional costs. For the sports landscape, this potentially means less financial support through advertising and sponsorship contracts.
"A tax increase of 150% in three weeks is brutal for the industry. It will have a massive impact on sports sponsorship, as well as on jobs."
Whether the government will stick to its plan despite the loud criticism will become clear in the coming weeks. The government originally planned to implement the increase in two stages: in the summer of 2025, the tax rate was to rise to 3,5%, before the government wanted to raise it to 5% at the turn of the year. If the government now abandons this schedule, providers will have to reposition themselves within a very short period of time.
