Luxembourg Considers Creating a State-Owned Online Gambling Monopoly

Luxembourg’s Justice Minister Elisabeth Margue confirmed recently that the small European country is considering the idea of introducing a state-controlled monopoly on online gambling and sports betting. 

Luxembourg Considering Online Gambling Monopoly

Margue responded to questions from Luxembourg Socialist Workers’ Party (LSAP) MP Dan Biancalana, who expressed concerns about player protection and the increasing presence of gaming machines in local cafés. According to European case law, it is possible to establish such a monopoly, but the government must then ensure the protection of its citizens, Margue said. She explained that authorities are examining these issues internally with all relevant parties to determine what actions can and must be taken, and how far measures should go if the initiative proceeds.

The minister added that reforms are in progress to permit National Lottery gaming terminals in these establishments, while all other similar devices are set to be banned. At the same time, Health Minister Martine Deprez noted that Luxembourg has an agreement with the Center for Excessive Behavior and Behavioral Addictions (ZEV) to tackle problem gambling. With the number of people seeking help for addiction nearly tripling from 2020 to 2024, reaching 100, the ZEV budget has risen from EUR 220,000 (around $254,000) in 2020 to EUR 560,000 ($646,000) this year.

Should Luxembourg move forward with a monopoly, it would mark a departure from the prevailing approach in Europe. In recent years, many countries across the continent have shifted away from exclusive state control toward open licensing systems. Proponents of this shift argue that competition enhances channelization and consumer protection.

What’s the State of Online Gambling in Luxembourg?

Online gambling operators are not established in Luxembourg but are instead based in jurisdictions where such activities are legally permitted. Luxembourg residents are allowed to participate in these online casinos and play for real money, as doing so is not prohibited under national law. Winnings from these platforms can be withdrawn to a local bank account without restriction.

However, the overall gambling sector in the small European country seems quite healthy. Luxembourg’s gambling market is projected to generate around $447.8 million in revenue in 2025, according to industry estimates. Casinos and casino games are expected to account for the largest share, with a projected market volume of roughly $270 million. Average revenue per user (ARPU) is forecast to reach about $478 next year. Looking ahead, the number of users in the gambling sector is expected to climb to around one million by 2030.