The government of Luxembourg is seriously considering establishing an online gambling monopoly, a move that would represent a significant policy divergence from its current approach to digital betting and the broader European regulatory trend.
This internal examination was confirmed by Justice Minister Elisabeth Margue in parliament following an inquiry by LSAP MP Dan Biancalana concerning the government’s plans for player protection and harm prevention in the online sector.
Margue acknowledged that internal discussions are ongoing, emphasizing the complexity of establishing such a model within the current European legal framework.
While European case law permits the creation of state monopolies, they must be demonstrably focused on protecting citizens and require robust mechanisms to ensure channelization and prevent cross-border leakage, issues which often necessitate the implementation of controls such as geo-blocking.
The deliberations extend beyond the online space. Margue noted that reforms are being developed to rationalize the land-based sector by permitting the introduction of National Lottery gaming terminals in specific locations while simultaneously eliminating existing unregulated gaming machines found in numerous cafés across the Benelux region.
The Justice Minister’s statements coincide with increasing public health concerns regarding gambling harm. Health Minister Martine Deprez shared data indicating that the number of people seeking help for addiction has escalated dramatically, rising threefold since 2020.
In response, the government of Luxembourg has significantly boosted funding for the Center for Excessive Behavior and Behavioral Addictions (ZEV), increasing its budget from €220,000 to €560,000 this year to support growing demand for specialized services.
If Luxembourg chooses to proceed with a state-run online gambling model, it would break ranks with countries like Finland that are moving toward open, competitive licensing systems.
Many international observers caution that monopoly models often struggle to effectively compete with high-quality offshore operators, potentially limiting their efficacy in protecting players and maintaining channelization.
The Justice Minister of Luxembourg:
“According to european case law, you can create such a monopoly, but then you must protect your citizens. 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. these are complex questions, and discussions are widely ongoing.”
