Growth in Luxembourg's Exclusive Gaming Market

The gambling industry in Luxembourg operates under a strict and tight framework of regulations, with state monopolies in control and a very stringent licensing system in place. In contrast to many other European states that have made an open market approach to online gambling, Luxembourg provides a very state-controlled approach for almost all of the gaming sector. Nevertheless, it remains a useful way for the state and the country to fund itself. A good guide to online gambling in Luxembourg is the Beste Trustly Online-Casinos in Luxemburg, concerning which Trustly is a safe and user-friendly payment solution for those who play online gambling.

State Monopoly and Regulations

In the gambling market of Luxembourg, the National Lottery, formally known by the French name Loterie Nationale, is the major player with monopoly on majority of forms of gambling. Although online gambling is permitted, it can be offered only through state-run lotteries and sports betting. Presently, no licensing policy for private operators in online gambling exists, with the Loterie Nationale holding a monopolistic right on all forms of online lotto and sports betting.

Source: SiGMA News.

• Only one casino operates in Luxembourg: Casino  in Mondorf-les-Bains.
  • This casino operates under a local license that tightly controls the types of games permitted.
  • Games offered include:
    • Roulette
    • Blackjack
    • Baccarat
    • Slot machines
  • Fiscal revenue generated by Casino:
    • Increases in fiscal revenue have been seen over time, with a noticeable rise in recent years.

Whereas France and Germany have liberalized their gambling markets, light control still exists in the two countries. While the two countries opened up their online gambling industries to private operatives-a practice that has expanded the market-the state-controlled model in Luxembourg allows for very high control but also sluggishness in diversity and opportunity for private players.

Online Gambling Market Growth

Statista believes that the online gambling market, despite still operating under a restrictive framework, will continue to grow at an annual rate of 5 percent to 2029.

Factors contributing to growth:

• Growing popularity of online sports betting and gaming.
• User penetration in the online gambling market:
  • Expected to reach 18% in the coming years.
  • Estimated number of users by 2029: approximately 147,600.

Source: SiGMA News.

Success of the National Lottery

The National Lottery has proven a spectacular success. In recent years, results have been unbeatable, and gross gaming revenue has soared to higher heights.

Contributing factors to this growth:

• Introduction of new products like EuroDreams.
• Deployment of Video Lottery Terminals (VLTs), which have become the most popular gaming product offered by the National Lottery.
• VLTs alone generated a considerable portion of the overall revenue.

We are excited to announce that the National Lottery has achieved record results, exceeding all expectations and setting a new standard for the coming years. This is due to the hard work and dedication of our teams, continuous innovation, and the trust that our players and partners have placed in us," said Léon Losch, Director of the National Lottery.

Source: SiGMA News.

• The lottery’s strategy:
  • Combines a strong physical retail network with its digital offerings.
  • Maintained growth even as more customers move online.
  • The National Lottery continues to pay significant commissions to retailers, further anchoring its importance in the local economy.

Conclusion

The gambling market in Luxembourg is a unique case in Europe because it originates mainly from state control and monopolies. While neighboring countries like France and Germany have been moving toward liberalized markets, Luxembourg has been keeping a strong state-driven model. This control enables a better monitoring of gambling activities, but with the limitation of opportunities for private operators to partially participate in the market. The sector has continued to grow, nonetheless, especially in online gambling, where a steady increase in users and revenue can be expected during the coming years. The combined success of online and retail sales from the National Lottery gives credence to its standing as Luxembourg's mainstay of the gaming market. With the growth of the sector comes increasing pressure to balance state control with greater diversity of market operations to ensure that Luxembourg remains competitive in this ever-changing global gaming landscape. Future of the gaming sector in Luxembourg would mostly depend on how well it harnesses technological advancements while keeping a tight regulatory framework.