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State income from taxation
Austria is one of Europe's most "fiscally tough" gambling markets. State revenues are formed not by one tax, but by a package of payments: federal fees on gross gaming income (GGR) for casinos and lotteries, land taxes on bets (often from turnover), concession (license) payments, corporate taxes, as well as an indirect VAT effect due to the exemption of gambling from value added tax. This design both limits supply, funds social programs and makes the market predictable.
1) Main sources of state revenue
1. 1. GGR Taxes/Fees
Casino (offline): progressive bets that rise to the upper levels as GGR grows (in industry practice, to very high shares).
Online casinos and "electronic lotteries" (win2day): federal bets/fees tied to GGR by product (slots, live, poker).
1. 2. Lottery deductions
The National Lottery (Österreichische Lotterien) transfers significant amounts to the budget and funds, financing culture, sports and social initiatives. This is one of the most stable sources.
1. 3. Land taxes on rates
Sports betting is heavily taxed at the land level (Bundesländer). Typical is a percentage of turnover, which, with a low margin of bookmakers, turns into a double-digit share of their GGR.
1. 4. Concession and regulatory payments
One-time and periodic payments for the right to conduct activities (concessions), fees for supervision, certification, RNG audit and information security.
1. 5. Corporate taxes and related charges
Corporate income tax on profit, social contributions to the wage fund, local fees (utility bills, etc.).
1. 6. "Hidden" VAT factor
Most gambling is VAT-exempt. This means that there is no deduction for input VAT on purchases (equipment, IT, marketing), which increases the cost of the operator. There are no direct VAT payments at the rates, but the state still receives VAT from supplier chains (contractors, services).
2) How it works in practice: the way of money
1. The player bets/buys the lottery product.
2. The operator generates GGR = bets − wins.
3. Federal taxes/fees (for casino/online/lotteries) are calculated from this GGR.
4. For sports betting, land taxes from turnover are additionally applied.
5. Plus there are concession payments, corporate taxes and social contributions.
6. Part of the funds is directed through targeted channels (culture, sports, prevention of gambling addiction).
3) Illustrative mini-cases (simplified calculations)
Case A. Land Casino
GGR: €100m
Federal fees (progression): conditionally €55-65 million
Concessions/supervision/audit: €2-3 million
Corp. tax (on earnings after all expenses): margin dependent
Total state (taxes + fees): a large share of GGR, with high progression - a decisive contribution
Case B. Online (win2day), Casino Portfolio
GGR: €100m
Federal rates/fees for products: conditionally €40-55 million
Compliance/audit/information security: €3-5 million (indirectly support the tax base of contractors)
Corp. tax: on profit after operating expenses
Case C. Sports betting (turnover land tax)
Turnover: €1 billion
Margin (GGR): 7% → €70 million
Land tax, let's say 5% of turnover: €50 million (this is ≈71% of GGR)
Federal/other payments: depending on business structure
Bottom line: even a "small" tax on turnover gives the land a large flow and greatly "eats up" the bookmaker's margin
4) Why the state benefits from such a configuration
Social goal: high load on games of chance and strict limits reduce negative external effects.
Budget sustainability: lotteries and casinos provide predictable receipts; rates add "base width."
Ease of control: monopoly/limited concessions and a single online operator (win2day) simplify accounting, auditing and enforcement.
5) Distribution of funds: who wins besides the budget
Culture and sports: part of the deductions goes to cultural projects, mass and professional sports, event infrastructure.
Social programs and prevention: financing hotlines, research, educational campaigns on Responsible Gaming.
Regions: land budgets directly benefit from tax on rates and local fees.
6) Enforcement and gray segment
c.com fight: Domain/payment locks and claims against unlicensed operators protect the tax base.
Responsibility of affiliates: sanctions for promoting illegal sites; pure marketing is a condition for maintaining budget revenues.
7) What business sees: Taxes as part of P&L
High "tops" of progression in casinos require perfect operational discipline and work with bones.
Betting lives on thin margins - land taxes from turnover set the limit for aggressive growth.
Online in a mono model (win2day) compensates for rates of scale and operational efficiency, but lives with strict RG/AML.
8) Trends 2025-2030
More analytics in surveillance: behavioral data and real-time monitoring to accurately target measures.
Shifting focus to final channels: in-depth checks of the source of funds, anti-fraud, transaction screening.
Standardization of RG requirements: unification of warning sizes, bonus rules, synchronization of offline/online statuses.
Revenue stabilization: Emphasis on lottery/online and cultural and tourism value of land-based casinos.
9) Practical conclusions
For the state: the current model gives high collection and controlled social risks.
For operators: taxes are not a "superstructure," but part of the unit economy; without RG/AML and audits, margins do not "converge."
For players: licensed circuit = payout protection and transparency; "gray" sites do not form a social return and carry risks.
Austrian budget income from gambling is not one "casino tax," but a multi-level system: progressive fees with GGR, lottery deductions, land taxes on bets, concessions and corporate taxes, reinforced by the "hidden" VAT effect. Together, this provides the state with stable revenues, finances culture and sports, and supports the "legally but responsibly" model. For the market, this means high compliance requirements, and for players, predictability and protection in a licensed circuit.