Luxembourg’s Illegal Gambling Crackdown Hits Legal Roadblock
Last update: 19 June, 2026
The proposed reform is designed to target illegal gambling machines operating in public venues such as cafés and bars. Authorities argue that these activities are often linked to broader criminal issues, including money laundering and organised crime.
To strengthen enforcement, the bill would grant law enforcement agencies expanded investigative powers, including undercover operations, surveillance measures and investigations conducted under electronic pseudonyms. It would also reinforce the position of the National Lottery as the country’s primary legal gambling operator.
However, in an opinion published on 10 June, the Council of State identified multiple legal ambiguities and constitutional issues, leading it to withhold approval until revisions are made.
Among its key concerns is the proposed monopoly status of the National Lottery. The Council questioned whether restricting gambling activities outside the regulated framework is fully compatible with European Union rules governing the free movement of services.
The watchdog also highlighted potential inconsistencies in the Government’s anti-money laundering strategy. While the reform is presented as a tool to combat money laundering, the Council noted that the National Lottery currently appears to fall outside Luxembourg’s anti-money laundering framework, creating uncertainty over the effectiveness of the proposed measures.
Further criticism was directed at the Government’s decision to split gambling reform into multiple stages. According to the Council, treating Bill 8679 as only the first phase of a broader overhaul risks undermining legal certainty and the overall coherence of gambling regulation.
In addition, several provisions drew formal constitutional objections. The Council argued that certain offences are defined too broadly or vaguely, potentially failing to meet constitutional standards requiring legal clarity and precision.
Until these concerns are addressed, Luxembourg’s planned crackdown on illegal gambling will remain on hold.