Fines worth almost €500,000 imposed in the first quarter by the Austrian Financial Police
Author:
Muhammad Gregory
In the opening quarter of the year, the Austrian Financial Police, Bundesministerium Finanzen, has been quite busy dealing with numerous illicit activities going on in the country. Amidst several fraud and tax evasion complaints, quite a few fines were issued in the illegal gambling sector. The penalty total for illegal gambling in the first three months of this year touched €492,000 after 27 criminal complaints were registered. Most of these fines were imposed in Vienna, one of the country’s hotspots of illegal gambling.
The penalty total for illegal gambling in the first three months of this year touched €492,000 after 27 criminal complaints were registered. ?Beatriz Miller/Unsplash
All forms of gambling, including iGaming, casinos, and lotteries, are supervised by the Ministry of Finance in Austria. The same entity is also responsible for issuing gambling licenses in the jurisdiction. The regulatory and supervisory responsibilities are carried out based on the Law on Games of Chance (GSpG). Under this law, almost every gambling segment has a monopoly in the country, making state-run gambling operators the exclusive source for almost all types of games of chance. The Austrian gambling market is one of the strictest markets in Europe. However, it is not among the most competitive because of the established monopolies. The stern regulations also keep most online operators at bay. The only option for private operators outside the monopolies in Austria comes in the form of a few betting activities and other games with low stakes. Games of skill are also included under this segment that is not covered by any monopoly.
To gain a gambling license in Austria, for any land-based or online gambling operation, the applicant must be from the European continent. Only then will its application be considered for approval. Since cross-border access and provision of online gambling are prohibited, the country also has strict laws against advertisements of illegal operators in the jurisdiction. If detected, the regulator and the financial police never hesitate to levy fines. Currently, the lottery and betting monopoly is under ?sterreichische Lotterien GmbH. The operator offers Toto, goal betting, letter lottery, scratch cards, and online lotteries. Any other operator cannot offer these games, and if it does, the regulatory body of Austria will impose a huge fine. The casino monopoly belongs to the renowned operator Casinos Austria AG. Established in 1967, the casino operator has not limited itself to the federal states of Austria. It is one of the largest entities in this segment and operates 40 land-based casinos in 16 countries.
Casinos Austria operates 12 casinos in Austria, offering a variety of table games and slots. In addition, the operator has also established eight shipboard casinos, 15 slot parlors, and its own iGaming platform. These monopolies act as a bottleneck in the path of European operators who are out to expand their operations across the continent by entering all regulated gambling markets. Due to this, the country is subject to many unlicensed gambling issues. Recently the Austrian financial police revealed that they investigated 46 companies that were suspected of providing illegal gambling. More than half of the inspected locations were deemed guilty, and penalties were issued. 27 criminal complaints were registered, and fines worth a total of €492,000 were imposed on the illegal operators. Illegal gambling activities in rural areas are no longer rampant, but big cities like Salzburg, Vienna, and Linz have become the hotbed for such illicit acts. 20 of the 27 complaints came from Vienna, and fines worth €300,000 of the €492,000 came from the same city.
76 illegal gaming machines seized during the Salzburg siege
Salzburg is one of the major cities in which illegal gambling activities are rampant. In a period of one year between May 2020 and May 2021, the Salzburg State Police Department (SSPD) confiscated over 100 illegal gaming machines from various locations in the city. By the end of last year, the number increased from 107 to 123, including the illegal slot machines found in other northern Austrian cities. Meanwhile, by the end of 2020, the Ministry of Finance collected a whopping €13 million in fines from illegal operators in Vienna.
Earlier this year, a week-long investigation was conducted by the SSPD and the Salzburg Cobra Task Force. During the investigation, several venues were investigated. Many were well-guarded and reinforced with magnetic locks, while the others were camouflaged to look like nail salons, tanning salons, and internet cafes. A team of 35 officers visited a total of seven suspected locations. Five of the seven locations forced the Cobra Task Force to use coercive force to enter.
After completing the challenging seven-day investigation, the officials confiscated 76 illegal gaming machines from the seven venues. Whenever the officials in Austria seize such machines, they are eventually destroyed. However, counting them first is essential because fines are issued based on the number of machines that were found at a particular location. When the 76 machines were confiscated in Salzburg, the Ministry of Finance confirmed that the fines could range from €5,000 to €30,000 per machine.
Fines worth €88,000 were levied in Vienna three months ago
Like Salzburg, the illicit activities in Vienna have caused major headaches for the Ministry of Finance and the Austrian financial police. In January this year, the financial police carried out a couple of two-day investigations with the help of the Vienna State Criminal Police Office and the LPD Vienna Standby Unit. The first was conducted on January 20th and 21st, while the second one took place on January 25th and 26th.
During this investigation, three locations were detected as hubs for illegal gambling activity. Six poker tables and five illegal gaming machines were recovered from these locations. After all machines and tables were seized, the financial police announced a massive fine of €88,000. The first location visited by the investigators was a rental apartment. What seemed peculiar about the place was the fact that it was covered with CCTV cameras.
That is what raised suspicion as the officials barged in and seized four illegal gaming machines. Furthermore, a cash center with €4,000 was also confiscated. The second operation was running on familiar territory as it had been shut down by the same group of officers about a year ago. Four poker tables with other accessories were confiscated. Hitting the third venue was challenging as it was well-guarded by bouncers, and there were access codes kept the doors locked. A well-constructed plan was executed to perfection as the officials managed to gain access before seizing two poker tables and an illegal gaming machine.
