Increase in casino closures persists in Liechtenstein: More gambling venues in Europe's "Las Vegas" face shutdowns
In the small European country of Liechtenstein, the gambling industry is undergoing significant changes. A series of new regulations, aimed at player protection and ethical gambling, are causing a ripple effect, leading to casino closures and uncertainty about the future of the market.
A Sharp Drop in Revenue Due to Cross-Border Self-Exclusion Lists
The main culprit behind the closures is a new cross-border self-exclusion system shared with Switzerland. This system, which came into effect on January 7, 2025, connects the exclusion lists of players banned from gambling in both countries. Over 60% of Liechtensteinâs casino revenue comes from Swiss players, and since the implementation of the linked exclusion lists, there has been a drastic drop in casino traffic, especially from Swiss visitors.
This decline has led to severe revenue declineâup to 85% in just two weeksâand the permanent closure of some casinos, including one in Eschen. The overall gambling tax revenue in Liechtenstein is forecasted to drop by around âŹ50 million year-on-year due to this policy.
Government's Focus on Player Protection and Ethical Gambling Regulation
The government and regulators argue that the policy is motivated by player protection and ethics, aiming to reduce gambling harm by minimizing access for excluded players across borders. Switzerlandâs gaming authority Gespa and Liechtensteinâs Office of National Economy are enforcing this cross-border player protection.
An Uncertain Future for the Gambling Market
Regarding the future of Liechtensteinâs gambling market, while specific government plans beyond enforcing the exclusion list sharing have not been explicitly detailed, the severe impact on the land-based casino sector implies that adaptation or diversification strategies may be necessary. The new regulatory environment introduces uncertainty for the microstateâs gaming economy, with potential for shifts toward alternative gambling formats, possibly online gaming.
Industry Criticism and Historical Context
Industry representatives, such as Philipp Nossek, vice-president of the Casino Association Liechtenstein, have criticized the new regulations, suggesting that the tightening of regulations could be an attempt to introduce a casino ban through the back door.
The first two casinos in Liechtenstein opened in 2017, with the number increasing to nine by 2022. However, there is currently no exchange of blacklist data between Liechtenstein and other countries, allowing players banned in their home countries to participate in gambling in Liechtenstein.
The citizens of Liechtenstein had mixed feelings about the construction of casinos, and an interest group called "Stop the Casino Wild Growth" was launched. In a subsequent public vote, voters rejected a general casino ban.
Looking Ahead
The Liechtenstein government has approved an agreement with Switzerland to exchange blacklist data, but it has not yet come into effect due to ongoing domestic procedures. The Liechtenstein government's goal with these measures is to reduce the attractiveness of the casinos, thereby also reducing their density, without planning a general ban.
Currently, there are six casinos remaining in Liechtenstein, out of a peak of nine. The Liechtenstein government will reassess the situation in 2028, deciding on new casino licenses and the continuation of the ban on online gambling. The government preempted a public vote on a general ban on casinos by introducing stricter regulations and better player protection.
Recently, three casinos in Liechtenstein have closed: the Plaza Casino in Schaan, permanently, and the Casino 96 in Balzers, after two years of operation. As the industry navigates these changes, it remains to be seen how the market will adapt and what the long-term impact will be.
[1] Neue ZĂźrcher Zeitung, "Liechtensteins Casinos schlieĂen wegen verlinkter Selbstaussetzerlisten", 2023. [2] Gambling Compliance, "Liechtenstein Casinos Struggle with Cross-Border Self-Exclusion Lists", 2023.
- What will be the long-term impact of the new cross-border self-exclusion system on Liechtenstein's gambling industry, particularly affecting casinos in Eschen and other locations?
- The government and regulators in Liechtenstein and Switzerland are focused on player protection and ethical gambling regulation, as evidenced by the implementation of a cross-border player protection policy. How might these measures influence gambling trends in the banking-and-insurance, finance, casino-and-gambling, and casino-games sectors?
- Industry personalities like Philipp Nossek have criticized the new regulations, suggesting they could lead to a hidden casino ban. What are some potential arguments in favor or against stricter regulations for responsible gambling and casino culture in Liechtenstein?
- The closures of casinos in Liechtenstein after the implementation of the cross-border self-exclusion system have sparked discussions about the industry's future. Could alternative gambling formats, such as online gaming, play a more significant role in the casino-and-gambling industry's adaptations and diversification strategies?
- In light of the current regulatory environment and the sector's overall uncertainty, what implications might these changes have on the future of casino-culture, responsible gambling, and the casino-personalities involved in Liechtenstein's gambling market?
