In the trend of liberalizing the gambling market in most European countries, Luxembourg insists on a state-led and strictly regulated route. Despite the limited market size, the country has achieved steady growth in gambling revenue through the stable operation of the national lottery and the only casino.
Monopoly Structure in Gambling
The core of Luxembourg's gambling industry is dominated by the national lottery (Loterie Nationale), which holds a monopoly position in almost all forms of gambling. Although online gambling is technically allowed, the license is limited to the national lottery, and private operators are not allowed to enter the field. The national lottery thus has exclusive rights to offer online lotteries and sports betting.
This model ensures that the government has direct control over every aspect of the market, strengthening the consistency of regulation and the concentration of revenue.
Economic Contribution of the Only Casino
The country's only physical casino—Casino 2000, located in Mondorf-les-Bains, operates under local licensing. Its game types are strictly limited to traditional items such as roulette, blackjack, baccarat, and slot machines.
Despite the restrictions, the casino's contribution to national finances cannot be ignored. Data shows:
Fiscal revenue in 2023 reached 24.2 million euros;
Higher than 20.1 million euros in 2022;
Exceeding the pre-pandemic level of 22.4 million euros in 2019.
This growth reflects that even under highly centralized management, the gambling industry still has sustainable profitability.
Comparison with Neighboring Countries: Control vs. Liberalization
The Luxembourg model contrasts sharply with its neighboring countries—France and Germany. The latter have opened up the online gambling market, introducing a large number of private operators, promoting industry diversification and technological innovation.
However, Luxembourg has chosen to sacrifice market diversity in exchange for higher regulatory control and concentrated fiscal revenue. Although this approach suppresses the development of private enterprises, it also avoids regulatory fragmentation and market chaos.
Steady Expansion of Online Gambling
Despite strict regulations, Luxembourg's online gambling market still shows strong growth potential. According to Statista data:
The user penetration rate is expected to be 18% by 2024;
The number of users will reach 147,600 by 2029;
The overall annual compound growth rate (CAGR) is expected to be 5%.
The growth momentum mainly comes from the popularity of online sports betting and interactive gaming products, especially among young players.
Continuous Innovation by the National Lottery Leads to Record Revenue
The national lottery reached a historic high in 2023, with total gambling revenue reaching 76.8 million euros, a year-on-year increase of 21%. The largest contribution was from video lottery terminals (VLTs), generating 22.2 million euros in revenue for the year, becoming the most popular product.
Léon Losch, director of the national lottery, said: "This achievement not only exceeded all our expectations but also set a new benchmark for the future. It reflects the team's innovative spirit, players' continued trust, and close support from partners."
At the same time, the national lottery actively expands the synergistic development of digital products and physical retail channels. In 2023, commissions paid to retailers reached 16.2 million euros, consolidating its pillar status in the local economy.
Conclusion: Fine Management and Long-term Sustainability of a Small Country
The development path of Luxembourg's gambling industry shows that under a framework of strong regulation and state leadership, the gambling industry can also achieve stable growth. Although there is a lack of market vitality and competitive stimulation in the short term, the government effectively achieves a balance between economic benefits and social responsibility through strategic product innovation, technology integration, and strict control of gambling channels.
In the future, the moderate growth of online gambling may become a new engine for Luxembourg's gambling industry, with the national lottery continuing to play a central role.
