Austria Hikes Sports Betting Tax by 150% Starting April 2025

Austria is set to shake up its betting industry with a hefty tax hike. Starting April 1, 2025, the sports betting tax will jump from 2% to 5%—a 150% increase. Although the original plan, as outlined in the coalition agreement between ÖVP, SPÖ, and Neos, was to gradually raise the tax by January 2026, the government decided to skip the slow rollout and go all in, as reported by oe24.at.

What’s Behind the Sudden Change?

This early tax hike is part of a wider package of fiscal changes that includes both tax increases and subsidy cuts impacting businesses and individuals across Austria. The goal? Boost government revenue. But not everyone’s convinced it’ll work out that way.

Industry Reactions: “Jobs Are on the Line”

Sharif Shoukry, head of the Austrian Sports Betting Association, didn’t mince words when responding to the announcement. He warned that such a steep increase could put jobs at risk and force betting companies to tighten sponsorship deals with Austrian sports organizations.

According to Shoukry, licensed sports betting operators already contribute hundreds of millions of euros to Austria’s public budget each year. But he doubts that ramping up the tax will actually bring in more money. On the contrary, he fears the opposite: businesses might shut down or scale back, pushing players toward the black market where taxes aren’t paid at all.

A Familiar Debate in Germany

Austria isn’t the only country rethinking its approach to gambling taxes. Germany is facing similar scrutiny. There, online gambling is taxed at 5.3% of stakes, unlike traditional casinos where taxes are based on actual profits (after winnings are paid out).

Industry groups like the German Sports Betting Association (DSWV) and the European Gaming and Betting Association (EGBA) have long argued that this uneven playing field hurts legal operators and fuels the black market. The concern is that taxing the amount players wager, rather than how much the operator actually earns, forces legal platforms to lower their payout rates—making them less attractive than their illegal counterparts.

Could Austria’s Move Backfire?

The sudden jump in Austria’s tax rate has already been published on the government’s official business portal, so there’s little room left for debate—at least in the short term. Still, critics like Shoukry are pushing back, insisting the rushed decision may end up doing more harm than good.

To add another layer to the discussion, Austria still classifies sports betting as a game of skill—not a game of chance. That classification currently shields it from some gambling regulations and taxes. However, the new coalition government has hinted that this distinction may soon be up for review. If sports betting is reclassified as a game of chance, operators could face even more taxes and tighter controls.