Is Gambling Legal in Luxembourg?

Software Certification and Technical Standards

• Only the state monopoly operator, Loterie Nationale, is authorized to provide online gambling services in Luxembourg. All technical systems, including gaming software and platforms, must comply with internal standards set by the operator and any applicable national IT security requirements.
• Gaming systems must ensure fairness, randomness, and integrity of game outcomes. Regular testing and certification by recognized testing laboratories may be required to verify compliance with these standards.
• The technical infrastructure must guarantee high availability, reliability, and resilience to ensure uninterrupted service for players.
• Systems must be capable of generating detailed logs and records of all gaming activities for audit and compliance purposes.

Data Protection, Privacy Measures, and Server Location

• All personal and financial data collected from players must be processed in accordance with the General Data Protection Regulation (GDPR), ensuring lawfulness, fairness, transparency, and security of data processing.
• Appropriate technical and organizational measures must be in place to protect player data against unauthorized access, alteration, or loss. This includes data encryption, secure storage, and access controls.
• Servers hosting player data and gaming operations are typically required to be located within the European Economic Area (EEA) to ensure compliance with EU data protection standards.
• Operators must provide clear privacy policies and obtain explicit consent from users for data processing activities.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

• Comprehensive AML policies must be implemented, including customer due diligence, ongoing monitoring of transactions, and reporting of suspicious activities to the relevant authorities.
• KYC procedures require verification of player identity, age, and residence before allowing participation in gambling activities. This typically involves collecting and verifying official identification documents and proof of address.
• Enhanced due diligence measures must be applied for high-risk customers or transactions, including source of funds verification.
• All AML and KYC processes must be documented and regularly reviewed for effectiveness and compliance with national and EU regulations.

Financial Reporting, Auditing Standards, and Record-Keeping

• Operators must maintain accurate and transparent records of all financial transactions, including player deposits, withdrawals, wagers, and winnings.
• Regular internal and external audits are required to ensure the integrity of financial operations and compliance with regulatory requirements.
• Records must be retained for a minimum period specified by law, typically at least five years, and must be readily accessible for inspection by regulatory authorities.
• Financial systems must be capable of generating detailed reports for regulatory submissions and compliance monitoring.

Technical Implementation Requirements for Responsible Gambling Tools

• Systems must provide players with access to responsible gambling tools, including the ability to set deposit, loss, and wagering limits.
• Mandatory self-exclusion mechanisms must be available, allowing players to exclude themselves from gambling activities for defined periods.
• Operators must implement real-time monitoring for signs of problematic gambling behavior and trigger interventions or notifications as needed.
• Clear information and resources on responsible gambling and support services must be prominently displayed on all platforms.