Luxembourg is considering the launch of a state-controlled online gambling monopoly. The government is evaluating how such a model could function while ensuring strong player protection. Justice Minister Elisabeth Margue addressed parliament on Wednesday. She outlined the ongoing analysis and highlighted the regulatory challenges involved.
Government Explores Regulatory Overhaul
Margue confirmed that Luxembourg is studying a state-controlled model for online gambling and sports betting. She spoke in response to LSAP MP Dan Biancalana. He raised concerns about player safety and the rising availability of gaming machines in local cafés.
“According to European case law, you can create such a monopoly, but you must protect your citizens. We are examining issues like geo-blocking and other safeguards internally with all stakeholders. This is to determine what can and must be done and how far we should go if we proceed,” Margue explained. “These are complex questions, and discussions are widely ongoing.”
The minister added that reforms are already underway to allow National Lottery gaming terminals in hospitality venues. Meanwhile, other types of gaming machines are slated for a ban.
Focus on Player Protection
The debate emerges amid growing public concern over gambling-related harm. Health Minister Martine Deprez noted that the government has strengthened its partnership with the Centre for Excessive Behaviour and Behavioural Addictions (ZEV). They are tackling problem gambling.
Between 2020 and 2024, the number of individuals seeking help for gambling addiction nearly tripled to around 100. Consequently, ZEV’s budget increased from €220,000 in 2020 to €560,000 this year to meet rising demand.
A Divergence from the European Trend
If Luxembourg proceeds with a monopoly, it would deviate from the prevailing European approach. Most countries have moved toward open licensing frameworks in recent years. These frameworks aim to improve competition, channelisation, and consumer protection.
Finland’s recent dismantling of its monopoly system provides the most prominent example of this liberalisation. Therefore, Luxembourg’s consideration of a state-run alternative positions it as an outlier in a European landscape increasingly favouring competition.
