Last time, TC-Gaming White Label shared insights with major gambling industry figures about the gambling markets and policies in Germany, Switzerland, and Poland—three of Central Europe's most prominent markets. This time, let’s shift focus to some of Central Europe’s more understated yet high-potential countries that are actively moving towards legalizing gambling. Take Liechtenstein, for example. Although it’s tiny enough to be overlooked on a map, it was one of the first countries in the world to launch an officially licensed iGaming lottery. Austria, while still under a state monopoly, has already signaled plans to overhaul its system based on Germany’s reforms. Hungary, Slovakia, and the Czech Republic are all transitioning from a closed to a semi-open gambling model, showing strong signs of market expansion in the coming years.

As always, we’ll look at the current regulatory environment, market prospects, regulatory mechanisms, and tax structures—offering a comprehensive view of these “small but mighty” gambling markets. Consider this a deeper dive into the “other side” of the Central European gambling map.

Liechtenstein’s Gambling Market: iGaming Not Yet Legalized

About Liechtenstein

Liechtenstein is a landlocked microstate situated between Switzerland and Austria, with a population of around 39,000—making it one of the least populated countries in the world. The official language is German. Known for its wealth, Liechtenstein consistently ranks at the top in terms of GDP per capita, which was estimated to exceed USD 180,000 in 2023. Thanks to a stable financial system and low tax policies, the country attracts a high concentration of ultra-high-net-worth individuals.

Current Gambling Policy in Liechtenstein

Gambling activities in Liechtenstein are mainly governed by the “Gambling and Casino Act” (Spielbankengesetz). As of now, the country has not passed legislation to regulate iGaming nor has it issued any related licenses. However, since mid-2017, land-based casinos have been permitted to operate, and currently there are six physical casinos in the country.

Market Potential

Since 2023, Liechtenstein’s land-based casinos have achieved close to €50 million in annual turnover. While the market size may be small, its location at the crossroads of three German-speaking countries—Switzerland, Austria, and Germany—gives it a unique edge in “tourism-driven gambling.”

Regulatory Environment

Liechtenstein holds a special place in the history of iGaming. As early as 1995, it launched the world’s first officially licensed internet lottery—Interlotto, later rebranded as PLUS Lotto. Operated by the Liechtenstein International Lottery Foundation (ILLF), this initiative offered instant-win games and scratch cards until 2011.

Tax Structure

Currently, there is no dedicated tax regime for iGaming, as it is not yet legalized. For land-based casinos, there is a fixed licensing fee and a revenue-based tax. However, exact rates have not been publicly disclosed.

Austria's Gambling Market: Monopoly Remains, Reform Looms

Overview of Austria

Austria is a German-speaking country located in the heart of Central Europe, known for its high standard of living and stable economy. With a population of approximately 9 million, Austria holds significant influence in finance, tourism, culture, and technology as a member of the European Union. In 2023, its GDP per capita exceeded USD 56,000, placing it among the top in the EU.

Current Gambling Policy in Austria

In Austria, the iGaming sector—including lotteries and casino operations—is currently monopolized by a state-owned enterprise. These services are exclusively run by Österreichische Lotterien (Austrian Lotteries) and its joint venture with Casinos Austria. This monopoly is expected to remain in place at least until September 2027. However, the sports betting market is open, and each federal state has the authority to issue licenses independently. That said, there is no unified regulatory framework at the national level.

Future Outlook of Austria’s Gambling Market

Despite partial liberalization, the monopolistic nature of the industry continues to stifle competition. The Austrian Ministry of Finance is reportedly considering reforms inspired by Germany's regulatory model. These reforms may include establishing an independent regulatory body and increasing tax rates—moves that have drawn significant attention from stakeholders in the gambling sector.

Austria’s Gambling Regulatory Landscape

Currently, gambling regulation falls under the jurisdiction of individual states, resulting in inconsistent enforcement standards. Most regions only allow betting on sports events. A few states permit wagers on cultural or political events. Notably, "live betting"—placing bets during a match—is still explicitly banned in certain areas, meaning only pre-match bets are legally allowed.

Austria’s Gambling Taxation Structure

1. Sports Betting Tax: 2% turnover tax
2. Additional Fees: Vary by state government regulations
3. The government is also exploring the possibility of raising tax rates and unifying the regulatory framework across the country.

Hungary’s Gambling Market: Saying Goodbye to Monopoly and Embracing Openness

Overview of Hungary

Hungary is located in Southeastern Central Europe, bordering Austria and Slovakia. It is a member of the European Union with a population of approximately 9.7 million. The official language is Hungarian, though English is widely spoken among the younger generation. As of 2023, the country’s per capita GDP reached around USD 22,000, placing it at a mid-tier level within the EU.

Current Gambling Policies in Hungary

Although Hungary’s gambling industry was long dominated by a state-owned operator, increasing pressure from the European Union and internal momentum for reform led to the implementation of a new gambling law in January 2023. This law ended the exclusive control of sports betting previously held by the national operator, Szerencsejáték, and introduced a new licensing system. Applicants must demonstrate at least five years of licensed operation experience within the EEA region and must have no record of illegal gambling operations in the past five years.

Outlook for Hungary’s Gambling Market

Currently, gambling licenses remain largely concentrated among the former state monopoly platform and three local land-based casinos. However, the direction of reform is clear, and the market is expected to gradually open further to international operators in the coming years.

Gambling Regulatory Environment in Hungary

Regulator: The Supervisory Authority for Regulated Activities (SZTFH) is responsible for overseeing technical compliance, funding sources, advertising practices, and consumer protection. The new regulations now allow players to register multiple gambling accounts, breaking the previous “one person, one platform” restriction.

Hungary’s Gambling Tax System

1. Application Fee: HUF 10 million (approx. €26,000)
2. Registered Capital Requirement: HUF 1 billion
3. Operating License Fee: HUF 600 million
4. Supervisory Fee: 2.5% of gross gambling revenue (capped at HUF 10 million)
5. Gambling Tax: 15% of gross revenue

Slovak Gambling Market: Liberalization Underway, Regulation Still Evolving

Overview of Slovakia

Slovakia is a landlocked country in Central Europe, bordering Ukraine to the east and Austria to the west. With deep Central and Eastern European cultural roots, the country has a population of approximately 5.4 million people, and the official language is Slovak. As a member of both the European Union and the Eurozone, Slovakia enjoys political stability and an open economy. In 2023, Slovakia's per capita GDP reached approximately USD 24,000, positioning it in the upper-middle range among Central European emerging markets.

Current Gambling Policies in Slovakia

As the government continues to push for digital transformation, the gambling industry has shifted from a state-run monopoly to a model that allows participation from private and international gambling operators. In January 2023, Slovakia officially implemented a new Gambling Act, abolishing the old monopoly system and permitting private companies to apply for various iGaming licenses.

Market Outlook for Slovak Gambling

The reform has sparked interest from numerous international operators. However, a complex licensing structure and strict advertising regulations still pose challenges. The government's goal is to strike a balance between protecting consumers and encouraging compliant operations.

Regulatory Environment in Slovak Gambling

Slovakia has established an independent regulatory body: the Office for the Regulation of Gambling. Its main responsibilities include licensing, compliance oversight, and managing a blacklist of unauthorized operators.

Advertising Regulations:

1. Advertising is prohibited for minors and vulnerable groups
2. Time-restricted ad broadcasts
3. All ads must include “Responsible Gambling” messaging
4. A full ban on gambling advertising may be introduced in the future

Gambling Tax System in Slovakia

The specific tax rate structure of Slovakia's gambling tax has not yet been fully disclosed. PS: However, the editor of Tianchengbao.com found some information about Slovakia's gambling tax, which can only be used as a reference to adopt a tax calculation model based on GGR (gross revenue).

1. iGaming Operators: Required to pay 22% of their GGR as tax.
2. Land-Based Operators: Taxed at 6% of GGR.
3. Land-Based Casinos: Must pay 27% of GGR to the national government, and an additional 3% to the local municipality where the casino is located.
4. Some gambling-related activities may be exempt from VAT (Value-Added Tax), but the actual application depends on the business type and local regulations.

Czech Gambling Market: Mature Regulations and a Move Toward Refined Oversight

Overview of the Czech Republic

The Czech Republic, also known as Czechia, is located in Central Europe, bordered by Slovakia to the east and Germany to the west. It is a member of both the European Union and the Schengen Area. With a population of approximately 10.7 million, the official language is Czech, although English is also widely spoken in major cities and business environments. As of 2023, the country’s GDP per capita reached around USD 32,000, placing it among the more economically advanced nations in Central Europe.

Current Status of Czech Gambling Policies

Czechia is one of the earliest countries in Central and Eastern Europe to legalize its gambling market and introduce a licensing system for foreign operators. Since the implementation of the Gambling Act in 2017, the Czech gambling market has operated under a strict regulatory framework and licensing criteria. The act allows both domestic and international legal operators to apply for licenses covering various gambling products, including sports betting, RNG-based games, lottery, and bingo.

Outlook for the Czech Gambling Market

Having taken an early lead, the Czech gambling market has developed steadily over recent years. However, the real "breakout potential" may just be starting to emerge, particularly following a new round of legislative reforms in 2023. These regulatory updates are more than routine compliance improvements—they signal a strategic shift by the Czech government toward market optimization. The reforms primarily focus on three core areas:

1. Enhanced player protection — The introduction of a "panic button" feature and a strengthened self-exclusion system aim to foster a healthier entertainment environment.
2. Crackdown on illegal gambling — Expansion of the blacklist and accountability measures for unlicensed websites and affiliate marketing channels.
3. Expansion of legal gambling offerings — Clear support for the legalization of live casino games, offering platforms broader content development potential.

Meanwhile, the Czech gambling market continues to experience strong revenue growth. According to data from the Ministry of Finance, online gambling has maintained double-digit annual growth in recent years. By 2023, total gambling revenue exceeded €1 billion, with over 50% coming from iGaming platforms. With continued regulatory improvements, rising user engagement, and diversification of product types, the Czech gambling market is expected to unleash further growth potential, positioning itself as a key growth hub in Central Europe.

Czech Gambling Regulatory Landscape

Key updates in the new legislation include:

1. Panic Button Mechanism — Allows players to self-exclude for 48 hours with a single click.
2. Strengthened Blacklist System — Any gambling site accessible within Czechia is now considered to be “operating within the territory.”
3. Tighter Control on Affiliates/Grey Market Operations — Emphasizes locally compliant partnerships and bans non-compliant cooperation models.

Czech Gambling Tax Structure

Licensed gambling operators in Czechia are subject to the standard corporate income tax and must also cover specific compliance-related technology costs. This results in a dual structure of high taxation and strict regulation.

Summary

By analyzing the gambling policies, market status, and tax environments of Central European countries such as Liechtenstein, Austria, Hungary, Slovakia, and the Czech Republic, it's clear that although these aren't “top-tier markets,” they are indeed “opportunity-driven markets.”

These countries share some common trends: policies are shifting from closed to open, regulation is moving from loose to systematic, and tax structures are becoming increasingly transparent — making this the ideal time for iGaming platforms to establish an early presence and capture the market dividend.

Particularly in high-income gambling markets like Hungary, Slovakia, and the Czech Republic, tangible policy benefits and opportunities for technical collaboration are beginning to emerge. For iGaming operators with strong technical capabilities and a commitment to compliance, these markets are undoubtedly the next strategic landing point worth focusing on.

Of course, with abundant market opportunities come significant challenges: policies are changing, tax rates are being adjusted, regulatory frameworks are tightening, and each country has different licensing systems and technical requirements. This is when you need a partner that truly understands policies, systems, and — more importantly — the full implementation of iGaming platform operations.

TC-Gaming White Label has been deeply engaged in iGaming platform technology solutions for 17 years, focusing on providing efficient, secure, and stable one-stop white label iGaming services to global operators. From frontend interfaces to backend systems, from game integration to payment solutions, from localization to multi-currency support — we transform complex compliance requirements into “technical solutions” and operational challenges into “deployment tools.”

If you're looking to seize the opportunity as the Central European market gradually opens up and build your own iGaming ecosystem, TC-Gaming White Label will be your best partner.