Taxation: 40-80% GGR

Austria is one of the most "expensive" markets in Europe in terms of the tax burden on the gambling business. The key feature is progressive bets, counted from gross gaming income (GGR), which for casinos reach 40-80%, plus specialized vertical fees and compliance costs. Such an architecture is a conscious choice of the state: to limit supply, protect the consumer and ensure stable budget revenues.

1) Basic principles of the Austrian fiscal approach

GGR logic for large verticals. The main tax rates are tied to gross gaming income (bets minus winnings), and progression is used for casinos: the higher the GGR, the higher the rate up to the upper corridor.

Federal vs. land level. Casinos, lotteries and online are federally regulated; sports betting and some machines - largely at the land level (regional spread).

Taxes + regulatory costs. Fiscal payments are supplemented by expenses for RG/AML, RNG audit, information security circuits, etc., which actually increases the "effective" rate for the operator.

2) Casino: 40-80% GGR progression

For land-based casinos, there is historically one of the highest scales in the EU: the larger the GGR, the higher the rate, the upper levels reach ~ 80%. That is:

keeps the market in an "elite," limited format;
guarantees predictable revenues to the budget;
smooths out the motivation for offline over-expansion.

Practice: for medium-sized casinos, the "effective" rate is often in the range of 50-70% GGR, and for objects with a peak turnover it can rise to the upper limit of the scale.

3) Lotteries and online (win2day): high fiscal corridor

The lottery circuit and online games as "electronic lotteries" (win2day) carry a high federal load comparable to the top European benchmarks. Together with deductions for social and cultural programs, the effective load for lotto/online is in the "upper" corridor of the industry. For the digital segment, this is expressed in:

fixed rates/fees linked to GGR of individual products (slots, live, poker);
"add-ons" in the form of RG/AML expenses and required reserves for risk management.

4) Automatic machines, VLT and "small forms"

In the "small segment" (machines outside the casino/VLT), land fees and restrictions play a significant role:

the rate is often expressed in a "hybrid": fix per terminal + percentage of turnover/income;
the final "de facto" load calculated on GGR for neat operators can be at the level of 30-60%, strongly dependent on the ground and limits.

5) Sports betting: land taxes (often from turnover)

Rates are the competence of lands, therefore:

tax is usually levied on turnover (turnover) rather than on GGR;
nominally, the numbers look lower (for example, a few percent of turnover), but given the low margin of betting, the effective share of GGR can be very noticeable (double-digit percentage).

6) "Hidden" VAT factor and transaction costs

As in the EU as a whole, gambling is more often exempt from VAT, but this means that:

the operator cannot offset input VAT on purchases (equipment, services, marketing);
input VAT becomes a cost, increasing the effective aggregate load;
combined with RG/AML, IT audits, RNG certification, and information security costs, the overall "cost of compliance" increases markedly.

7) What it looks like in P&L: 3 mini cases

Case A: A land casino with strong traffic

GGR = 100

Casino tax (progression): ~ 60 (middle of scale 40-80%)

Remainder = 40

Operating (personnel, site, safety) = 20

IT/Audit/RG/AML = 5

Marketing/Partners = 3

EBITDA ≈ 12 → margin 12%

Case B: win2day online briefcase (slots + live)

GGR = 100

Fiscal and target load (lottery circuit/online) = 40-55

Operating & Platform = 15-20

RG/AML/Audit = 5-7

EBITDA ≈ 18-35 (higher due to lower CAPEX, but strongly depends on the product mix and bonus limits)

Case C: Rates (Land turnover tax)

Sales volume = 1000, margin (GGR) = 70

Land tax, say 5% turnover = 50 → is ≈71% of GGR

Operating/line suppliers/risk management = 12

EBITDA ≈ 8 (shows why even "small" percentages of turnover "eat up" GGR in betting)

💡 These calculations are illustrative: the exact rate depends on the land, product, volume, progression and current regulations.

8) Why the state benefits from a high rate

Social purpose: supply containment and protection of vulnerable groups.

Budget sustainability: predictable payments to federal and regional budgets.

Market quality: high entry threshold → fewer operators, more control, stronger compliance.

9) Practical conclusions for operators and investors

Capital and scale are critical. With the progression through the casino, the economy is "pulled" only by projects with a strong traffic model, premium location and subtle bone control.

Online wins with operational flexibility, but RG limits and high fiscal burden require careful bonus policies and accurate unit economics.

Betting in Austria is marginally fragile due to land-level turn-over taxation: risk models and anti-arb strategies are needed.

The "invisible" costs (RG/AML/IS, certification, input VAT) have a lot of weight - they easily add a few points to the "effective" rate.

The Austrian formula is simple in concept and complex in details: very high taxes on games of chance (up to 80% GGR in casinos), a high lotto/online corridor, land turnover fees for bets and tangible compliance costs. The result is an "elite," compact and predictable market under the close supervision of the state, where operators with strong operational discipline, a technological stack and a culture of responsible play win.