Jackpot for Austrian sports

December 20, 2023
Corporate News | Sponsorship
Over 2 billion euros in sports funding from Austrian Lotteries funds to date, and at least 120 million euros annually from the Ministry of Sport’s budget since 2023.
 

75 years of sports promotion. For decades, Austrian Lotteries has been the most important financer of popular as well as performance sports in our country. An amendment to the Gaming Act ensured another record result this year – the Ministry of Sports was able to distribute 126 million euros on the basis of the statutory sports promotion programme.

75 years ago, in December of 1948, the National Council passed the Sports Pools Act (“Sporttoto-Gesetz”), laying the foundations for the introduction of pools betting (Toto) in Austria, thus creating a sustainable, solid basis for financing domestic grassroots as well as top-class sports.

In the early 1980s, more and more gaming capital flowed to the lottery, which was already established in neighbouring countries, causing Toto sales to decline and the financial basis for Austrian sports to shrink. The introduction of the “6 out of 45” lottery in 1986 and the transfer of the organisation of Toto to Austrian Lotteries were intended to counteract this trend. The plan worked, and Austrian Lotteries was able to provide over 2 billion euros for sports in Austria thanks to dynamic business development over the years.

With the amendment of the Gaming Act in December of 2022, sports funding was increased by 50 percent to a minimum amount of 120 million euros per year. This milestone led to a record distribution of 126 million euros from the Ministry of Sports budget to Austrian sports in 2023.

The 60 Austrian professional associations, the popular sports associations ASKÖ, ASVÖ, Sportunion, the Association of Austrian Alpine Clubs and the Austrian organisations with special responsibilities in sports, namely the federal sports organisation Sport Austria, the Austrian Olympic Committee, the Austrian Paralympic Committee, the Austrian Disabled Sports Association and Special Olympics Austria – representing 1.8 million club members in around 15,000 sports clubs – stand to benefit from this increase of 40 million euros.

One year after the law was amended, Bundes-Sport GmbH has now surveyed the areas in which the federal sports federations have applied for and used additional funding, which of course must comply with the funding guidelines of the Ministry of Sports.

In absolute figures, the largest increase was recorded in sending athletes to competitions and training courses (+6.64 million euros), followed by investments in the association management infrastructure (+3.35 million euros), coaches for competitive and elite sports as well as their training and further education (+2.80 million euros) and association management staff (+2.52 million euros).

The largest percentage increases were recorded in investments in school partnerships, in the education and training of competition judges and officials, and in the prevention of doping. Overall, the resources deployed in these areas have increased by a factor of five to six (albeit from a relatively modest starting level).


Quotes:

Vice-Chancellor and Sports Minister Werner Kogler: “As in many other European countries, Austria many years ago came to the realisation that it is appropriate for gambling-related companies that generate part of their turnover through sports to also support sports in return. There may be alternatives to this model, but Austrian Lotteries has proven to be a very reliable partner for sports in recent decades. 
The substantial increase in special federal sports funding by 50% to at least 120 million euros a year has given Austrian sports associations a lot of room for manoeuvre. The evaluation of the use of funds has shown that the funding recipients have used them very carefully, improving training and competition conditions for the athletes on the one hand and strengthening the sporting and administrative structures of the association on the other. I’m certain that Austrian sports will benefit greatly from the additional 40 million euros per year in the medium and long term, both at the top and across the board.”  

Erwin van Lambaart, Director General of Austrian Lotteries: “For decades, the legally enshrined promotion of sports has guaranteed that Austria’s athletes enjoy optimal training conditions, receive a solid education and are subsequently able to perform at their best in international competitions. Of course, success in sports does not begin on the winners’ podium, but with work at the grassroots level in over 15,000 Austrian clubs, all of which are staffed by volunteers. This work would not be possible without sports funding. We see this as a socio-political responsibility and are very proud of the fact that over 2 billion euros have been channelled into sports since Austrian Lotteries was founded in 1986.”

Julian Hadschieff, President of the Austrian Disabled Sports Federation: “On behalf of the thousands of people with disabilities that we represent, we would like to thank both the Federal Ministry and Austrian Lotteries for the reorganisation and increase in Austrian sports funding. The additional funding makes it possible to increasingly bring disabled sports into the limelight and to motivate the many volunteers.”

Andrea Scherney, Sports Director of the Austrian Disabled Sports Federation: “The increase in funding will make a significant contribution to enabling us to continue to expand our services for people with disabilities. In particular, the popular project of exercise and information coaches, who offer a comprehensive range of counselling and support services directly on site throughout Austria, can now be securely expanded and taken into the future. This improves the quality of life of those affected as well as that of their families. Engaging in sports simply makes people happy.”

Helmut Baudis, Secretary General of the Austrian Athletics Federation: “The increase in sports funding gives us an opportunity to launch many new projects in the athletics association. In 2023, for example, we were able to provide our top athletes with even more targeted support, purchase a lot of important training equipment, support the national associations and clubs with a new school initiative and launch a competition that will benefit our young athletes in particular.”

Victoria Hudson, javelin thrower: “By increasing the available funds, new measures have been developed specifically for the top athletes. We will receive even more success-oriented support, both in daily training and in case of any additional needs, such as injuries, in order to enable the necessary special treatments.”

Manfred Wallner, Member of the Presidium of the Austrian Ice and Stick Sports Association: “Last year, around 65% of the additional funds were channelled into urgently needed additional training courses, both for athletes and young talent. The remaining 35% was invested in digitalisation measures such as a database for managing members and championships, as well as information services for association members and the interested public.”

Beate Taylor, Vice President of Sportunion Österreich: “Sportunion Österreich is very grateful for the additional funding we received in 2023 from the special federal sports funding programme. These are channelled directly to the clubs and enable further development. One example is the “Sportunion Young Athletes” programme, which specifically promotes young athletes and their environment. Topics such as nutrition, mental training and social media are important for young competitive athletes, though unfortunately these are often neglected in normal club life.”


Additional information

Sports funding totalled
•    272.73 million euros (3.753 billion schillings) via Toto (1949 to 1986)

•    2,012.87 million euros via Austrian Lotteries (1986 to 2023)

Sports funding timeline

1948    
December 18 (Federal Law Gazette, No. 55/1949): Resolution of the Sports Pools Act (Sporttoto-Gesetz). 83% of the Toto net profit went to sports. 

1949    
First Toto round on October 23. The State Lotteries Office conducted the Toto.

1960    
The Austrian Gambling Monopoly Administration replaced the State Lotteries Office.

1971    
On January 5, 1970, the Sports Pools Act was amended and, with effect from January 1, 1971, the entire net proceeds of the Toto were used to promote sports.

1986    
Lotto was introduced in Austria. The Austrian Lotteries was founded to organise Lotto and Toto. Sports promotion was included in the Gaming Act. § 20 provided for an annual value-guaranteed 311 million schillings from Toto and Lotto tax funds instead of the Toto net profit.

1996    
The basic sports funding amount was increased to 400 million schillings per year.

1998    
Instead of a fixed amount, 3% of the turnover of Austrian Lotteries was made available for sports promotion with an upper limit (1998: max. 420 million, 1999: max. 440 million schillings). This regulation expired in 2000 and had to be renegotiated.

2000    
3.5% of Austrian Lotteries’ total turnover was made available for sports promotion; this amount was not allowed to amount to less than 440 million schillings. Annual funding was capped: 2000: max. 460 million schillings, 2001: max. 34.9 million euros, 2002: max. 36.3 million euros.

2003    
A further amendment to the Gaming Act of August 20, 2003, set an upper limit of 37,836,400 euros for 2003 and 2004, which was fully exhausted in those years. 

2005    
Sports funding amounts to 3% of Austrian Lotteries’ turnover, with no upper limit.

2011    
The amendment of the Gaming Act of July 19, 2010 ensured that Austria’s federal government provided an amount of 80 million euros annually for the promotion of sports from the licensee’s levy funds according to § 14, starting with the 2011 calendar year. This amount increased annually, commencing in 2013, to the extent to which gaming related federal revenue of the licensee under section 14 increased in the previous year as compared to the year before that.

2013    
Once the amendment of the Federal Sports Promotion Act in 2013 was passed, the new Federal Sports Promotion Fund was established; this fund was responsible for handling the promotion of Austrian sports associations.

2017    
The Federal Sports Promotion Fund established by the Federal Sports Promotion Act 2013 (BSFG 2013) Federal Law Gazette I No. 100/2013 was converted into “Bundes-Sport GmbH” with effect from January 1, 2018. It was now responsible for awarding, processing and monitoring the funding. 

2022    
With the latest amendment to the Gaming Act of December 6, 2022 (Federal Law Gazette I No. 187/2022), sports funding was increased by 50% from 80 million euros to 120 million euros a year. This amount will increase for the first time from 2024 to the extent to which gaming-related federal revenue of Austrian Lotteries under section 14 increased in the previous year as compared to the year before that.

About Austrian Lotteries

Austrian Lotteries takes responsibility and supports what is relevant and important to many people in Austria. According to our guiding principle “Playsponsible – Practicing Responsibility Together”, player protection, Corporate Social Responsibility, sponsoring, correct game processing, the fight against corruption and money laundering, high levels data protection compliance and the highest security standards are indispensable and seen as a vital obligation for the licensed gaming company. In many areas, Austrian Lotteries voluntarily goes beyond strict legal requirements and is involved in numerous projects and initiatives that benefit people and the environment in Austria. 
 

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