Austria's new gambling laws were passed on Wednesday evening and the expected outcome was confirmed - restrictions which will put many independent street operators out of business, according to the trade association.

It had been widely expected that the regulation would open up the entire country to the possibility of running AWP-style machines, rather than the current four provinces only. But that would be accompanied by strict rules governing the number of licences issued and other clamp-downs on where machines would be operated and how many would be permitted. The net effect, says the association, Automatenverband, will be a disaster for the independent operators and a free-for-all for the big companies.

Under the new law, which also increased the number of casino licences from 12 to 15, the street market will have stakes and prizes limited to a maximum €10 input and a top prize level of €10,000. But at the same time, the number of amusement arcades would depend upon the local population. One arcade licence for every 1,200 residents - in Vienna it will be one for every 600 residents. There must be a minimum distance between arcades and local casinos of 15km, and in the case of Vienna 2km. No automatic start buttons will be permitted on machines, which must all be directly connected to the Ministry of Finance.

Although the ability to adopt a principle of machines in public places is now there for all of Austria - instead of just Vienna, Styria, Carinthia and Lower Austria - it is widely expected that the market will decrease because of the limitations on the population ratio and proximity of casinos.

A full report will appear in the July issue of InterGame.