The International Betting Integrity Association (IBIA), a European trade group that represents major operators including GVC Holdings, Flutter Entertainment and the Kindred Group, is asking the European Commission to reject new gaming regulations proposed for Austria’s largest state, insisting they’re incompatible with industry standards.
IBIA adds that enactment of the Lower Austrian Betting Act of 2019 could lead to the growth of unlicensed offshore operators.
According to iGamingBusiness.com, IBIA has questioned the maximum term laid out for online betting licenses (two years); the maximum stake of €350 (US$386) per bet; and a ban on in-play sports betting products.
“The IBIA contends that the notified draft law includes an unjustified short licensing duration limitation for online betting, an unwarranted restriction on live (in-play) betting products and an arbitrary limit on consumer stakes,” the body said in a statement. “The Lower Austrian authorities have not provided any evidence that would justify such measures, which will have a detrimental impact on the market and the level of consumer channeling.”
The association has asked the commission to “explore the appropriateness and compatibility of these unjustified product limitations and the related restriction of trade imposed on licensed betting operators and Austrian consumers in accordance with EU law.”
IBIA said the two-year license is “clearly unattractive for long-term business investment” and said it will discourage legitimate operators. It pointed to the UK’s unlimited licenses and limitations of either five or 10 years in markets such as Denmark, Spain and Sweden.
IBIA said the maximum stake was an “arbitrary and unevidenced restriction,” cited studies from Harvard Medical School and the UK Gambling Commission that say in-play betting does not increase the risk for problem gambling.
“Imposing product restrictions on regulated betting operators does not make it any less likely that the sporting events in that licensing jurisdiction will be any safer from betting related corruption, which can take place with a multitude of operators around the world,” IBIA said.
“The association and its members welcome the decision of the Lower Austrian authorities to license retail and online betting, but have concerns regarding the effectiveness and the underlining reasoning and impact of the proposals to restrict consumers.”
The Lower Austria Sports Betting Act is an attempt to update wagering laws that have been in place since 1978. The government says technological developments in the industry make the changes necessary.
