Austria has decided to implement IP-blocking of online gambling sites not holding an Austrian license.

At present, only the partially state-owned Casinos Austria is officially licensed to conduct online gambling within Austria via its Win2Day site. Austria’s Council of Ministers has now ordered internet service providers to block internationally licensed online gambling sites from crossing Austria’s digital borders.

Casinos Austria’s online monopoly hasn’t stopped the Austrian government from taxing online gambling revenue derived from Austrian punters at a rate of 40%, regardless of where a site is licensed. The European Commission (EC) has challenged the legality of Austria’s gambling regime but the state has insisted the Pfleger ruling applied purely to land-based gaming.

Geo-blocking is increasingly finding disfavor with the EC, which is trying to reduce trade barriers between member states, not reinforce them. On Wednesday, the EC agreed to proceed with its European Digital Single Market (EDSM) plan, with specific priorities to be unveiled on May 6.