Luxembourg Reviews Gambling Monopoly

Luxembourg Reviews Gambling Monopoly

Luxembourg is considering significant changes to its gambling framework, which could place most gambling activities under state control. Justice minister Elisabeth Margue confirmed that the government has begun drafting legislation to expand the National Lottery’s monopoly, potentially extending it to gaming machines and even online casino operations. The measure, if adopted, would represent a significant step toward consolidating gambling regulation under a single entity.

Currently, the Luxembourg National Lottery holds a dominant position in the country’s sports betting sector, while the only licensed casino, Casino 2000 in Mondorf-les-Bains, operates under a joint venture between Partouche Group and the Luxembourg Casino. However, gambling activity in Luxembourg extends far beyond these official venues. Cafés and bars across the country have introduced gaming machines that fall outside formal regulation, creating what many lawmakers see as a grey area in the system.

Under the new proposal, such cafés would no longer be permitted to host independent gaming machines. Instead, they would be restricted to offering National Lottery devices only. Margue explained that the purpose of the reform is to establish a uniform framework for gambling, one that meets European Union standards while maintaining a clear focus on player protection and oversight.

She stated that European case law permits a state monopoly under certain circumstances, provided it is structured to protect citizens and mitigate gambling-related harm. The government, however, is still exploring the details, especially regarding enforcement, oversight, and the potential technical complexities of introducing online gambling within a monopoly system.

Margue indicated that discussions remain ongoing with relevant authorities to determine the appropriate scope and implementation. “According to European case law, you can create such a monopoly, but then you must protect your citizens,” she said. “There are also questions around geo-blocking. We are examining these issues internally with all concerned parties to determine what can be done, what must be done, and how far we should go if we proceed.”

The issue was brought to light by a parliamentary question from LSAP deputy Dan Biancalana, who asked what actions were being taken to address the proliferation of unregulated gambling machines in cafés. He also raised questions about plans for online gambling and sports betting regulation and called for stronger efforts to prevent addiction.

On this point, health minister Martine Deprez noted that the government already collaborates with the Centre for Excessive Behaviour and Behavioural Addictions (ZEV) to address gambling-related problems. Data from the center indicates that the number of people seeking help for gambling issues has tripled between 2020 and 2024, reaching around 100 cases last year. Deprez added that most of those seeking support are men. In response to the growing demand, ZEV’s budget has been increased from €220,000 in 2020 to €560,000 in 2024, reflecting the state’s commitment to expanding its prevention and support measures.

The move toward a state monopoly comes at a time when Luxembourg’s National Lottery is still recovering from a recent cybersecurity incident. In September, the organization reported unauthorized access to player data from its sports betting platform loteriesport.lu. The breach exposed information, including names, addresses, and bank details, but did not compromise passwords or credit card data. The National Lottery confirmed that the incident was contained to its sports betting operations and did not affect other services. The case was reported to the National Data Protection Commission, and corrective actions were implemented with the affected subcontractor.

This series of developments underscores the government’s intention to introduce greater coherence and control to the country’s gambling structure. Luxembourg remains one of the few European nations without a dedicated legal framework for online gambling. According to the European Gaming and Betting Association, once Finland introduces a licensed system next year, only Iceland, Norway, and Luxembourg will remain without a multi-licensing model.

If Luxembourg proceeds with the proposed monopoly expansion, the National Lottery and Casino 2000 would become the cornerstones of a state-controlled gambling landscape. Such a system would enable authorities to regulate gambling activity more directly, ensuring compliance and public protection while limiting private competition. Yet the plan raises broader questions about how to balance consumer choice, regulatory efficiency, and the state’s financial interests.