As a result of the Gambling Act Amendment 2008 (BGBl I 2010/54) the § 58 (3) GSpG was introduced in the Austrian Gambling Act (GSpG BGBl 1989/620). § 58 (3) GSpG taxes prize competitions, in which the participants do not wager a stake with monetary value, with 5 % of the promised prizes. Such prize competitions are primarily used by media enterprises and constitute an important element of their marketing strategy. It is therefore necessary to examine the ramifications of this new „gambling-tax“ in detail. First this paper provides a general overview of the Austrian Gambling Act (GSpG), which is the legal framework for § 58 (3) GSpG. In the course of this the „everyday understanding“ and the legal sense of the term „gambling“ are precisely defined. Subsequently the reader is given an outlook on the gambling regulations of the EU and the Austrian constitutional law. Following this, the core elements of the Austrian state monopoly on gambling are outlined. The next chapter summarizes the three different types of gambling-taxes in Austria. After this the paper deals in-depth with the taxation of prize competitions and the impact of § 58 (3) GSpG on the Austrian Gambling Act. For this purpose the important criterions of § 58 (3) GSpG are explained individually. In this context, special focus is given to the legal classification of prize competitions. Furthermore the author addresses the issue of compatibility between § 58 (3) GSpG and the purpose of the Austrian Gambling Act. Then, due to a ruling of the Federal Tax Court (BFG) in 2015, the taxable base of cross-border prize competitions is closely examined. In doing so, the legal interpretations of the BFG, the tax authorities and the Supreme Administrative Court (VwGH) are summarized. After this the author constitutes his own legal interpretation of this subject matter. Lastly the most important conclusions of this paper are compiled in a list of theses.