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Manufacturers of gambling machines would like to have home market as a pillar.

LINZ

LINZ. Upper Austrian manufacturers of gambling machines feel abandoned from politicians. While a new gambling law is still in discussion, manufacturers make their profits abroad.

The company occupies 250 employees. Approximately 150 of these employees are engaged with production, development and sale of gambling machines. „The reason why we have so many companies in the same branch, is generally unknown", states Dattl.

Actually this fact doesn’t match with the legal terms. The Austrian gambling law is called anticompetitive and vaguely formulated by spokes persons of the branch in discussion with OÖN, which is planned to be reformed this year.

„We would urgently need the Austrian market as a stabilizing factor", Reinhold Bauer, director and founder of Amatic Industries in Rutzenmoos states. The export share of his company, occupying 132 employees at its headquarters, Bauer evaluates to „far over 80 percent". TAB Austria holds even 98 percent.

Player protection required

Both demand a law, which leaves no room for loopholes and enables competition. „Nobody seeks a dialogue ", Dattl criticizes the creation of the new law. „Of course maximum player protection is necessary", Bauer comments.

Dattls company group acts also as operator of gambling machines. Even though „small gambling" is prohibited in upper Austria, such as in Salzburg, Tyrol and Vorarlberg, the hazy formulated paragraphs allow the operation of gambling machines. The company in Ansfelden operates 200 of these machines in upper Austria. Further it also rents other amusement devices like Dart games.

The economy crisis has hit the machine manufacturers with full force. After 29 million Euros in 2008, Amatic had only 20 million Euro turnover last year. Especially the decreases in Eastern Europe have struck the company. Also Spain is a difficult market, Bauer states. Goal for this year is to hold at least the level of last year.

Dattl of TAB Austria calculates 30 million Euro turnover for 2009/10 (per 31. July), after 45 million in 2008 and 68 million Euro in 2007. „Because of the crisis, customers have difficulties in financing" At the moment we have a prospective major order, which hasn’t been fixed yet. „If we can actually get this deal, we can follow up to the record year 2007",Dattl describes the volatility of the branch. Besides economic aspects also politics exerts influence on the business trend.

Usually the same time that a major change in law is expected: Thus Russia has completely prohibited gambling except for a few towns in the last year. „All of a sudden two million gambling machines have overflowed the market ",Dattl states. This has struck manufacturers in addition to the economic recession.

Relocate headquarters?

To relocate the headquarters from upper Austria into a country with a legislation in favor of gambling and lower manufacturing costs, is a question, which is obvious, but not yet to consider. „Basically everyone tries to stay", Bauer comments. Dattl: „But when the terms don’t match, one has to consider a step abroad."

The amendment of the Austrian gambling law is expected to be finished this fall at the latest, politicians and spokespersons of the branch estimate.

 

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