Political leaders from several Austrian federal states have warned that proposed reductions to slot machine limits under the country’s Gambling Act could weaken player protection, cut state tax revenues and push players towards illegal operators.
The intervention adds regional political resistance to a reform process already under negotiation between Austria’s governing parties. At the centre of the dispute is the future of so-called “small-scale gambling,” the slot machine operations regulated at state rather than federal level. All Austrian states except Vienna, Tyrol and Vorarlberg currently permit this form of gambling.
What the draft proposes
Under the current draft, limits on these games would fall sharply. The maximum stake per game would drop from €10 to €2, and the maximum potential win would be reduced from €10,000 to €2,000. The cuts mirror the player protection measures set out in the wider draft Gambling Act amendment, which would also lower online stake and win ceilings to the same levels and ban jackpots entirely.
Industry stakeholders have criticised the proposals, arguing that the reduced limits would make legal operations unprofitable and drive more players towards the black market. Regional politicians have echoed that position, warning that making regulated products less attractive could encourage consumers to seek out unlicensed alternatives.
Among those raising concerns are Salzburg Deputy Governor Marlene Svazek, Styria Governor Mario Kunasek and Upper Austria Governor Thomas Stelzer.
“When planning the new gambling law, the federal Government must pay very close attention to ensuring that player protection is not compromised and that players are not forced into the illegal market, which would also have serious consequences for tax revenues,” said Kunasek.
Salzburg’s timing problem
Salzburg faces a particular complication. Small-scale gambling is only now being introduced in the state, after a Gaming Act that took effect at the start of 2026 permitted up to 472 slot machines outside casinos under tightly defined conditions. Regional officials argue that the proposed federal reforms could undermine the sector before it has had the chance to establish itself.
The argument that tighter rules push players toward unlicensed operators is a familiar one across European markets, where operators and regulators have repeatedly clashed over where to set product limits without ceding ground to the black market. It surfaced again in the UK, where Evoke warned that UK budget tax hikes would trigger job losses and a black market surge, and in Germany, where a betting group warned of a black market surge tied to restrictive conditions.
The revenue at stake
The financial implications for the states are concrete. Gambling machines generate around €35m a year for Austria’s federal states, with the largest shares going to Lower Austria, Styria and Upper Austria. Lower Austria alone receives more than €14m per year, which explains why the revenue warning carries weight in the regional debate.
The slot machine dispute sits within a much larger overhaul. Under the draft Gambling Act amendment, state-owned Win2Day would lose its exclusive online casino monopoly, opening the market to licensed competition for the first time. Sports betting is expected to remain classified as a game of skill rather than gambling, keeping it outside any unified federal framework and regulated at state level.
Negotiations over the Gambling Act remain ongoing, and the stake and win limits are among the points still in play. With regional governments now lined up against the proposed cuts on both player protection and revenue grounds, the limits set in the final text will signal how far Austria is willing to tighten its regulated product before the risk of pushing players offshore outweighs the protection gains.
Source: Global Gaming Insider
