In the serene backdrop of the alpine principality, Liechtenstein has stood firm on its stance against online gambling. The nation, having only green-lit gambling establishments on its soil in 2010, continues to uphold a strict policy regarding the digital arena of betting. The latest verdict from the government has put a hold on processing any online gambling license applications until the end of 2028, dashing the hopes of internet-based gambling operators seeking to penetrate this affluent European market.
This deceleration in the expansion of the gambling industry in Liechtenstein aligns with a broader strategy to regulate the growth and influence of gambling on its society and economy. The online sector, in particular, has been met with caution due to concerns around addiction and the integrity of the financial system — issues that are more challenging to monitor and regulate in the digital space as opposed to brick-and-mortar locations.
Reflecting a commitment to responsible gambling and the wellbeing of its citizens, Liechtenstein also recently unveiled a collaboration with neighboring Switzerland. This bilateral agreement is centered around the exchange of data concerning players who are prohibited from participating in gambling activities. Set to be activated next year, this initiative aims to enforce “effective cross-border player protection,” a move likely to be welcomed by advocates of gambling regulation.
On the ground, the appeal of tangible, land-based casinos in Liechtenstein is undeniable. Since the introduction of these establishments, they’ve enjoyed substantial success, becoming hotspots not just for locals but for a burgeoning number of international visitors. Despite this popularity, the government took decisive measures in 2022, implementing a prohibition on the licensing of new casinos—yet another step to tamp down the rapid expansion of gambling within its borders.
In a direct demonstration of the populace’s sentiment towards the industry, a referendum earlier this year offered the Liechtenstein electorate the choice to close the doors on these casinos permanently by the year 2028. A significant 70% of voters cast their ballots, and the outcome was a resounding call to keep the casinos operational — 73.3% voted against the proposed blanket prohibition.
The referendum’s result came against a backdrop of debate regarding the darker side of the gambling industry, including the potential for gambling addiction and concerns over the small nation’s international reputation. Nevertheless, the allure of economic benefits has been considerable. In 2018, during the first full year with active casinos, the two then-present contributed a whopping CHF53.5 million to the country’s coffers. After applying the effective tax rate of 34.5%, this translated to CHF 19.9 million in collected gambling taxes and fees.
The unmistakable financial impact marks the casino industry as a significant player in the principality’s economy. The government’s balancing act continues between tapping into this lucrative sector and safeguarding the well-being of society and order. With the recent extension of the online gambling ban, Liechtenstein reinforces its position on maintaining a controlled approach to gambling — favoring physical establishments which are easier to manage and regulate over the unpredictable landscape of online betting.
For now, the glittering lights of Liechtenstein’s casinos will continue to draw patrons seeking the thrill of the game, while the servers of potential online operations remain dormant — waiting for a change in the tide that might not come until at least 2029.
