Liechtenstein Government Considers Gambling Law Adjustments Amid Casino Industry Crisis

Government Eyes Gambling Law Revisions

The government of Liechtenstein is reportedly planning adjustments to its gambling laws, a move that comes as the nation's casino industry faces a significant downturn. Industry stakeholders are actively seeking concessions, particularly concerning gambling levies, in response to a challenging economic climate for the sector. This development follows a critical period for Liechtenstein's casinos, marked by substantial revenue losses and the closure of establishments earlier this year.

Cross-Border Exclusion List Triggers Revenue Collapse

A major catalyst for the current crisis was the implementation of a cross-border agreement with Switzerland on January 7, 2025. This agreement established a shared exclusion list, effectively banning individuals prohibited from gambling in one country from participating in casino activities in the other. While intended to bolster player protection, the measure has had a severe impact on Liechtenstein's casino revenues. The industry reported a drastic decline in income, plummeting by up to 85 percent, significantly exceeding the government's initial expectation of a 30 percent drop.

The consequences were swift and profound. The LV Casino in Eschen permanently ceased operations on January 29, 2025, becoming the first major casualty. Furthermore, the long-established Admiral Casino in Ruggell is slated to close its doors by the end of September 2025. These closures highlight the fragility of the business model when faced with reduced visitor numbers, many of whom previously originated from Switzerland.

Industry Calls for Concessions on Levies

In light of the severe financial strain, the Liechtenstein Casino Association (LCA) has urgently called upon the government to reconsider its current approach. LCA President Markus Kaufmann and Vice President Philipp Nossek have warned that without immediate action, Liechtenstein risks losing its estimated €50 million annual gambling tax revenue, with further casino closures imminent. They argue that the current policy unfairly benefits Swiss casinos by redirecting players.

Casinos in Liechtenstein are subject to progressive taxes ranging from 17.5% to 40% of their Gross Gaming Revenue (GGR). The country's reliance on this tax revenue, which is now severely threatened, underscores the urgency of the industry's plea for concessions on these levies.

Regulatory Framework and Future Outlook

Gambling in Liechtenstein is primarily regulated by the Gambling Act (Geldspielgesetz), which was implemented on October 10, 2010. The Office of Economic Affairs (Amt für Volkswirtschaft) is the primary regulatory authority, responsible for licensing and supervision. While land-based casinos were legalized in 2010 and experienced a boom, a ban on licensing new casinos was introduced in 2022 to manage growth. In 2023, a public referendum overwhelmingly rejected a proposal to ban casinos entirely, with 73.3 percent of voters opting to keep them open.

Despite the challenges facing land-based operations, online gambling remains largely inaccessible in Liechtenstein, with the government extending a ban on issuing new online gambling licenses until at least 2028, citing concerns over social harm and regulatory readiness. The ongoing debate in Liechtenstein reflects a broader struggle to balance player protection measures with the economic viability of the gambling sector, leaving the future of the principality's casino industry uncertain.