Law of 20 April 1977 on the regulation of gambling in Luxembourg: content, exceptions and modern practice

The main legal document defining the gambling regime in the Grand Duchy is the Law of 20 April 1977 ("Loi du 20 avril 1977 relative à l'exploitation des jeux de hasard et des paris relatifs aux épreuves sportives"). Its basic principle is simple: the exploitation of chance games and sports betting is prohibited unless it is expressly permitted by law or regulation. This logic of "general prohibition with point exceptions" has formed a limited and easily controlled market in which licenses are issued extremely sparingly.

What exactly regulates the 1977 law

Subject: organization and operation of games of chance and betting on sports competitions in Luxembourg. The basic rule is to prohibit the operation of the relevant business, unless otherwise established.

Motivation for prohibition: Judicial practice indicates the risk of "irrational and destructive behavior," which justifies the principle of preventive prohibition with separate permits.

Operational prohibitions: Among other things, the law prohibits the granting of credits to players (by operators and their personnel) to play or pay the debt of the game.

Exceptions and permissions: how "prohibition" turns into "can"

Exclusion is possible only by an act of power. The law allows activities only with special legislative or regulatory permits - these are the "point windows" of legality.

Casinos in the interests of tourism. The official explanations of the Ministry of Justice emphasize that permission to operate games can only be issued to casinos and similar establishments established in the interests of tourism, after a dossier check and on conditions set by the state.

Practice: in the country there is one support site - Casino 2000 (Mondorf-les-Bains), the work of which is based on a set of special acts and rules.

By-laws: what "grand-ducal regulations" specify

Grand ducal regulations are issued to apply the 1977 law. For example, the Regulation of November 1, 2015 updated the rules adopted in pursuance of Art. 6 and 12 of the law: requirements for halls, admission, types of chips/boards, visiting procedure (refusal to enter excluded, etc.). These documents explain "how exactly" the permitted casino works.

Online games and government positions

The Internet is not a loophole. The Ministry of Justice in official answers directly confirms: online games of the case fall under the general prohibition of Art. 1, unless there is a special permission. Distinguish between offline points with a "fixed local base" and Internet offers; the latter are disabled by default.

Bottom line: there is no "default online casino" in Luxembourg; only those formats for which an explicit permit has been issued are legal (for example, within the state lottery scheme/special acts).

Lotteries, promo games and special modes

The lottery market has historically existed in a social and charitable paradigm. Separate rules and subsequent regulation allow promotional lotteries/draws subject to conditions (separate laws and exceptions to the general prohibited norm of 1977). In practical guides for business, this is directly emphasized.

Sanctions and control

The law provides for criminal and administrative consequences for illegal exploitation of games (including confiscation/fines). Details of sanctions and violations can be found in legal databases with the text of the law.

What it means in practice (Casino 2000 case)

The activities of the permitted casino are accompanied by detailed internal regulations (up to the form of chips and admission rules), agreed with government agencies. This is an "illustration" of the model: one permitted casino + strict visiting/operating rules, the rest is prohibited.

Frequent questions

Is it possible to open a slot machine hall outside the resort?

No, it isn't. Without special permission, this falls under a blanket ban. Permission, according to the position of the Ministry of Justice, is issued only to casinos/similar establishments "in the interests of tourism."

What about "entertainment" machines in bars?

Machines with an element of randomness and potential winnings are banned. Exceptions - only for specially permitted terminals (for example, within the framework of the national lottery).

Are online bets and casinos allowed by foreign operators?

Not if they do not have Luxembourg permission: the Internet format also falls under the general ban.

Can gambling be advertised?

Any public activity is possible only within the framework of specially authorized activities and in accordance with the terms of the acts; "stimulating" advertising of illegal exploitation will entail responsibility. The basis of the regime is given precisely by the 1977 law.

How the frame evolved after 1977

The law has been modified and supplemented many times (including binding to the AML/CFT mode), and the specifics of the modes are descended through grand-ducal regulations. But the basic logic has not changed: the presumption of prohibition and point exceptions, which is confirmed by modern regulatory reviews.

Law of 20 April 1977 enshrined the "Luxembourg model" of gambling: a minimum of operators, a maximum of control. Everything that is not allowed directly is prohibited. Separate permits (casinos, lottery formats, promotional draws under conditions) exist, but are under close supervision and detailed procedure. For players, this means high predictability and protection, for business - a narrow, but transparent and stable regulatory corridor.