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Single Casino and National Lottery Revenues
The Luxembourg gambling ecosystem is compact and transparent: one flagship terrestrial operator (Casino 2000) and the National Lottery, operating on a public benefit model. Despite its small scale, the sector consistently generates budget revenues, supports employment, tourism and cultural projects. Below is an analysis of sources of income, tax architecture and factors affecting sustainability.
1) Revenue framework: what makes up the "gaming" budget
Casino 2000 (offline):- GGR casino products (slots, roulette, blackjack, poker, etc.): a shaft of player winnings minus their winnings.
- Non-mining revenue: restaurants, bars, hotel events, conferences (MICE), ticket sales for shows.
- Other services: hall rental, partner integration, sponsorship.
- Circulation games (number lotteries, scheduled draws).
- Instant lots (scratchcards).
- Service channels: retail network and digital services (personal accounts, online information).
2) Tax and quasi-tax architecture
Taxes from operators: the rate and base depend on the product (often with GGR for casinos).
Targeted lottery contributions: fixed shares for social, cultural and sports initiatives; administered according to regulations.
Indirect taxation: VAT on non-mining services (F&B, events), company income taxes, insurance contributions and income tax on salaries of employees.
Municipal effects: fees/permits, local contracts and procurement.
3) Distribution channel: how money "reaches" society
1. Player → operator: buying tickets/bets, F&B, events.
2. Operator → budget: taxes on GGR/profit, social contributions; Lottery - targeted deductions.
3. Budget/funds → community projects: culture, sports, health, social programs.
4. Indirect multipliers: contracts with local businesses, employment, tourist flows.
4) KPIs and performance targets (without reference to specific figures)
GGR by vertical: casino-tables vs slots; circulation games vs scratchcards.
The share of targeted lottery deductions in revenue and their stability.
Casino non-mining revenue as a seasonality buffer.
The average tourist check for locations (game + F&B + events).
Employment rate: direct/indirect jobs in retail lottery and Casino 2000.
RG indicators (limit coverage, self-exclusion) are markers of sustainable monetization.
5) The role of tourism and MICE
Events and conferences increase the flow of guests by converting it into F&B and moderate play.
Cultural tourism (castles, UNESCO, Moselle wine routes) reinforces related spending; the casino is part of the stay program, not the sole purpose.
6) Why the lottery is a sector stabiliser
Product diversification: Circulation games and scratchcards smooth out revenue volatility.
Wide retail network: small purchases of high frequency → predictable receipts.
Social legitimacy: Visible public returns reinforce popular support.
7) Risks and vulnerabilities of the income base
Market size and cross-border: Part of solvent demand goes to neighboring countries with wider supply.
Limited online licensing ecosystem: digital audience expenses partially flow to external jurisdictions → lost local taxes.
Offline seasonality: attendance "drawdowns" are possible without diversification to events/conferences.
Compliance burden: Tightening AML/KYC and RG is right for society, but raises transaction costs.
8) Growth leverage without "race to scale"
Boutique strategy Casino 2000: more MICE, gastronomic weeks, co-brands with Moselle wineries, themed shows - the rise of negaming and the average check.
Lottery product matrix: seasonal series of scratch cards, limited collections, "second chance" (for the benefit of RG and without aggression) - increasing retention without toxic practices.
Digital lottery services: convenient offices, transparent cost analytics and soft RG tools - building trust and predictability of income.
Partnerships with cultural institutions: trust funds are easier to communicate when the "trail" is visible - museum projects, sports programs, social initiatives.
9) Unit economics (schematic)
Casinos:- Revenue: (\text {GGR} +\text {Non-Gaming})
- Costs: personnel, licensing/compliance, marketing, capital investments, utilities.
- Fiscal: taxes on GGR/profit, social contributions.
- Income: ticket sales − prize pool.
- Contributions: target share for public needs + operating expenses + taxes.
- Key to sustainability: wide distribution and low demand volatility.
10) Social return and community contract
Direct effects: financing of culture, sports, health care; support for events and NGOs.
Indirect: urban branding, tourist appeal, local supply chains.
RG equilibrium: income growth is allowed only if limits, reality checks and correct communication are observed ("play is entertainment").
11) Scenarios to 2030
Status Quo + (basic): stable progressive growth due to the optimization of offline and lottery lines; priority - social return.
Moderate digitalization of the lottery: expansion of online services and reporting for players; convenience gains → retention.
Travel accelerator: package "culture + gastronomy + casino events" for the off-season; focus on middle check and negaming.
Point online liberalization (conditional): if a political decision is made - the return of part of cross-border demand for local supervision; strict compliance and RG.
12) The bottom line
Luxembourg's revenues from the single casino and the National Lottery are a small but steady stream with high public importance. Casino gives image, employment, MICE and part of GGR; lottery - stable sales and predictable deductions for public purposes. The vector of development is not scale at any cost, but boutique quality, transparency and responsibility. This approach maintains public confidence and ensures the long-term sustainability of budget revenues.