Unbundle gambling skills
A new gambling regulator has been called for in Austria for a long time, but apparently only the potential involvement of Novomatic AG in the Strache affair provided the necessary impetus. It has been clear since the middle of the week: the new independent gaming authority is coming. According to Vice Chancellor Kogler, a reform of the century that is intended to ensure the unbundling of gambling competencies. Supervision currently lies entirely with the Ministry of Finance.
This is how Finance Minister Gernot Blümel (ÖVP) imagined it in November 2020 - but he himself is now deeply involved in the donations affair. Although Blümel vehemently defended NovomaticIGT at his hearing before the Ibiza U Committee two weeks ago, dubious chats with former Novomatic boss Harald Neumann, which were seized during a house search, are now weighing heavily on the politician.
The Austrian federal government now wants to finally carry out the unbundling that Blümel first mentioned. The entire gambling section will be outsourced and transferred to the new authority. According to Kogler, this still has to be ordered. What is clear so far is that a judicial licensing board should be responsible for the licensing process. In addition, stricter transparency and compliance rules will be applied in the future.
Finance Minister Blümel continues to reject all allegations of illegal party donations by Novomatic AG. He currently welcomed the plans for the new gaming authority - the previous multiple role of the Ministry of Finance was no longer appropriate. He has been planning for a corresponding restructuring in the government program for a long time. In order to carry out the unbundling, the aim is to use concepts that have already proven themselves internationally. In addition, they want to focus on player protection and the fight against illegal gambling.
Vice Chancellor Kogler Versus Opposition
According to Kogler, there will no longer be any points of contact between gambling and politics. The decision to establish a new gambling regulator marks an important starting point for regulating and combating gambling addiction. As far as the booming online gambling is concerned, personalized player accounts and deposit limits should be established. The gambling package will be comprehensive, said the politician.
However, there was criticism from the FPÖ and NEOS. According to FPÖ chairman Norbert Hofer, the much-criticized gambling monopoly of Casinos Austria must now disappear from the scene, otherwise the new authority could hardly be justified. So far, the project is just an unthinking snapshot that is intended to pull Finance Minister Blümel and Chancellor Kurz out of the Novomatic affair.
The NEOS also stated that the new gaming authority should not become a defense strategy for Gernot Blümel and the ÖVP. NEOS finance spokeswoman Karin Doppelbauer called for Blümel to resign, while NEOS chairman Sepp Schellhorn called for the dismissal of ÖBAG boss Thomas Schmid. ÖBAG manages, among other things, Austria's participation in Casinos Austria.
There has already been criticism of Austria's gambling rules on several occasions. In October, a study by the universities of Osnabrück and Passau caused a stir in which researchers concluded that the country's gambling law violated EU law. The study was commissioned by the national gambling association OVWG (Austrian Association for Betting and Gambling). The association has been criticizing for years that EU-licensed providers of online gambling in Austria are being discriminated against in order to protect the state monopoly of Casinos Austria.
How do Novomatic and Casinos Austria react?
The announcement of a new gaming authority was positively received by market giants Novomatic AG and Casinos Austria. Novomatic explained that the move fulfills a long-standing demand of the group. Finally, an independent body based on international standards would be established for Online slots and other online casino games of chance were introduced, said marketing and communications manager Stefan Krenn to Austrian media.
The partially state-run Casinos Austria – most recently under massive fire because of the potential manipulation of slot machines – primarily supported stricter action against illegal gambling. This has been a long-standing demand of the company, which is now majority owned by the Czech Sazka Group. Spokesman Patrick Minar spoke of a great need for action as illegal gambling activities were spreading rapidly.
It remains to be seen whether the operators' demands will be implemented. According to Vice Chancellor Kogler, the formalities for introducing the new authority have already been signed by the Council of Ministers. Only an independent judiciary is a guarantee for democratic rights. It is now important to avoid any further appearance of political influence on the judiciary. The politician has not yet given an exact date for the opening of the gaming authority.
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