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Gambling taxes and law in Luxembourg

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Taxes

Section 12 of the Act of 20 April 1977 states that the Grand Ducal State operates a levy on gaming revenue for the benefit of municipalities and the state. This product is made for consideration of games (roulette etc.), by the difference between the advance made by the establishment and collection realized late on. A possible loss in the end portion can be carried over the result of the following days. The difference is less a discount of 25%.

For commercial games (bridge etc.) and circle (baccarat etc.), the product consists of the full amount of fees levied by the institution on the occasion of the parties involved.

The levy rate may be proportional or progressive and is determined by administrative regulation. The rate can vary from one game to another, without being no less than 10%, or more than 80% (Article 12 para. 2 of the Act of 20 April 1977). The levy is payable when income is made. Article 12 para. 5 provides that gambling is exempt from taxes on income and wealth as well as VAT.

For sports paris, the levy is set at 15% of gross sums involved in the bet. The levy is payable by the operator of paris on sporting events. The operator residing abroad must designate an agent residing in the Grand Duchy of Luxembourg, which is jointly and severally liable for payment of the levy.

LISTING

LEGISLATION Enacted

General

– Law of 15 February 1882 on lotteries, Mem. 1882 129.
– Grand-Ducal Decree of 13 July 1945 establishing the National Lottery, Mem. 1945, 392.
– Act of 20 April 1977 on the exploitation of gambling and paris on sporting events, Mem. 1977 548.
– Grand-Ducal Regulation of 12 February 1979 in implementation of Articles 6 and 12 of the Law of 20 April 1977 on the exploitation of gambling and related paris sporting events, Mem. 1979, 146.
– Grand-Ducal Regulation of 7 September 1987 on paris on sporting events, Mem. 1987 1739.
– Act of 14 August 2000 on electronic commerce to amend the Civil Code, the new Civil Procedure Code, the Commercial Code, the Penal Code and transposing Directive 1999/93 of 13 December 1999 on a Community framework for electronic signatures , Directive 2000/31 / EC of 8 June 2000 on certain legal aspects of services of the information society, certain provisions of Directive 97/7 / EEC of 20 May 1997 on distance selling of goods and services other than financial services, Mem. 2000 A, No. 96.
– Act of 30 July 2002 regulating certain commercial practices, penalizing unfair competition and transposing Directive 97/55 / EC of the European Parliament and of the Council amending Directive 84/450 / EEC on misleading advertising to include comparative advertising Mem. 2002 A, No. 49.

Lotteries

– Law of 15 February 1882 on lotteries, Mem. 1882 129.
– Grand-Ducal Decree of 13 July 1945 establishing the National Lottery, Mem. 1945, 392.
– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, items 1 and 2, Mem. 1977 548.

Casino Gaming

– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, Article 1 and Article 5 et seq, Mem. 1977 548.
– Grand-Ducal Regulation of 12 February 1979 in implementation of Articles 6 and 12 of the Law of 20 April 1977 on the exploitation of gambling and related paris sporting events, Mem. 1979, 146.

Machine Gambling Outside Casinos

– Act of 20 April 1977 on the exploitation of gambling and related sporting events paris, sections 1 and 3, Mem. 1977 548.

Betting

– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, Article 1 and Article 4, Mem. 1977 548.
– Grand-Ducal Regulation of 7 September 1987 on paris on sporting events, Mem. 1987 1739.

Bingo

– Engaged research has not discovered any relevant information about it.

Media Gambling Services

– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, Article 1 and Article 2, Mem. 1977 548.

Sales Promotional Gambling

– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, Article 1 and Article 2, Mem. 1977 548.
– Law of 15 February 1882 on lotteries, section 1.2, Mem. 1882 129.
– Act of 30 July 2002 regulating certain commercial practices, penalizing unfair competition and transposing Directive 97/55 / EC of the European Parliament and of the Council amending Directive 84/450 / EEC on misleading advertising to include comparative advertising , Article 21, Mem. 2002 A, No. 49.

Charity Gambling

– Act of 20 April 1977 on the exploitation of gambling and related paris sporting events, Article 1, Mem. 1977 548.
– Law of 15 February 1882 on lotteries, section 1, Mem. 1882 129.

BARRIERS

Overview

General

The Luxembourg regulation of gambling is based on a principle of prohibition of the operation of games set in Article 1 of the Law of 20 April 1977. Any authorized game works on the basis of a derogation from the prohibition. Such is the case lotteries, paris on sporting events and casinos.

Furthermore, the Act of 30 July 2002 regulating certain commercial practices, penalizing unfair competition and transposing Directive 97/55 / EC of the European Parliament and of the Council amending Directive 84/450 / EEC concerning misleading advertising so as to include comparative advertising, which provides in Article 4 litt. e that the advertiser which raises the design or layout of the communication, the impression that the consumer has a lot Ganges, must provide this lot to the consumer.

Lotteries

Article 1 of the Law of 20 April 1977 establishes a principle of prohibition of exploitation of gambling. Lottery national dimension are thus prohibited unless they have been authorized by the Ministry of Justice after approval by the Grand Duchess Charlotte of National Relief Work.

In a judgment of 7 May 2003, the Administrative Court dismissed the action for annulment of a decision of the Minister of Justice (with the assent of the National Work of Grand Duchess Charlotte Relief) denying a Dutch foundation authorization to organize, from Luxembourg, an international lottery.

The Grand Duchess Charlotte Secours National OEuvre organizes the National Lottery and has also two German lotteries to offer products in the territory of Luxembourg.

The National Lottery

This is the decree of 13 July 1945 creating a national lottery whose organization is entrusted to implement the National Grand Duchess Charlotte relief. The Grand Duchess Charlotte National Relief Work is a public institution with legal personality. Chairman of the Board is appointed by the Grand Duke. Public functions of the work are multiple:

– It is notably responsible for the organization of the National Lottery which it perceives 30/72 revenue;
– Any other public lottery that the National Lottery, the value of the Notes to be issued exceeds the sum of 2,500 euros must be authorized to carry on its assent (Article 4 of the Decree of 13 July 1945);
– It is allowed to accept gifts and bequests.

National Lottery offers games called scratching (Picobello, Banco, Elo!, BlackJack, TuttiQuanti, Domino, Cash for Life) and so-called draw games (Euro Millions and Zubito).

German Lottery

Two German lotteries are also authorized to offer lotteries in Luxembourg. The company Lotto Rheinland-Pfalz and Toto-Fußballwetten is represented in Luxembourg since 1953. Its operation was then provided by a general agency located in Luxembourg City. In 1983, the Luxembourg Ministry of Justice granted him permission to market the German lotto. In 1984, the Saarland-Sporttoto company was also authorized to operate the German lotto. The lotto game has since been proposed by two operators, whose seats are respectively located in Koblenz and Saarbrücken.

Luxembourg bettors also have the opportunity to play classic Toto on the principle of 13er-Wette. The Super 6 and Spiel 77 are also provided on the ballot Lotto and Toto. Since August 2000, the ODDSET (form of sports paris) is also offered in Luxembourg. A tax is levied on the German lottery for the benefit of the Luxembourg State (Act of 30 July 1983). Moreover, the Luxembourg Football Federation and the National Work of Grand Duchess Charlotte Secours also receive part of the profit of the games for the development of social, cultural and sports.

Casino Gaming

Under Articles 5 and following of the law of 20 April 1977, and an exception to the fundamental prohibition of gambling contained in Article 1, casinos opening permissions can be granted “in the interest tourism “by government decision of the Council, and after studying a specification.

The list of games that can be operated in casinos in Article 1 of the Grand Ducal Regulation of 12 February 1979 (matching games, circle games and slot machines).

Moreover, under section 2-14 of the Act of 12 November 2004 on the fight against money laundering and against the financing of terrorism transposing Directive 2001/97 / EC of the European Parliament and the Council of 4 December 2001 amending Directive 91/308 / EEC on prevention of the use of the financial system for money laundering, casinos are subject to a number of obligations to cooperate in the fight against money laundering money and terrorism financing.

At present, only one casino is in the territory of the Grand Duchy, “Casino 2000” Mondorf-les-Bains.

Machine Gambling Outside Casinos

Article 1 of the Law of 20 April 1977 establishes a principle of prohibition of exploitation of gambling.

Specifically, Article 3 of the Law of 20 April 1977 shall operate slot machines on public roads and in public places (excluding casinos).

Betting

The combined reading of Articles 1 and 4 of the Act of 20 April 1977 leads to the conclusion that only paris on sporting events may escape the general prohibition of gambling, provided that the prior approval of the Minister of Justice.

Article 1-2 of the Grand Ducal Regulation of 7 September 1987 defines the operation of paris as “the accepting either directly or through an intermediary, even occasionally, paris or issues regarding field events related to prognosis sports “.

Article 7-1 provides that the capture and validation of paris can be done through outlets of operators authorized thereto by the Minister of Justice. Only authorized totalizing therefore can receive sports paris, excluding bookmakers.

In addition, the Regulation leads to require that the counter has a seat, or a representative, in the territory of the Grand Duchy. Finally, many conditions must be met to try to obtain authorization from the Minister of Justice.
At present, only two forms of sports paris, Toto and ODDSET, are offered on the territory of the Grand Duchy by the German lotteries.

Media Gambling Services

Article 1 of the Law of 20 April 1977 establishes a principle of prohibition of exploitation of gambling.

However, a combined reading of Articles 1 and 2 of the Law of 20 April 1977 led to consider that the advertising contests and lotteries and free raffles organized exclusively to commercial propaganda exception to this general prohibition of gambling ( conditions below, No. 8).

Sales Promotional Gambling

Article 2 of the Law of 20 April 1977 authorized the organization of lotteries, contests and raffles of free advertising made exclusively for the purpose of commercial advertising, provided they meet a number of conditions laid in Article 21 of the law of 30 July 2002:

– The agent must establish a regulation specifying the conditions and the course of the business transaction; (This regulation and a copy of the documents sent to consumers must be filed with a judicial officer who ensures regularity, moreover, the full text of the regulation must be sent free by the advertiser at any person in the demand.)

– Advertising materials should give rise to any confusion in the minds of their recipients nor misleading as to the number and value of prizes, and the conditions of grant;
– The entry form must be separate from the order;
– Participation in the draw shall not be subject to any compensation or obligation to purchase;
– The agent that gives rise to the consumer the impression that he has won a prize, must deliver them to him.

Moreover, under Article 1.2 of the Law of 15 February 1882 on lotteries, financial transactions made with premium or repayable by way of fate must be authorized by the government.

Charity Gambling

Under Article 1.1 of the Law of 15 February 1882 the lotteries exclusively for acts of piety or charity, with the encouragement of industry or the arts, or any other public purpose can be allowed. An authorization request must be made to the board of the mayor and aldermen of the principal place of issue of banknotes when the value of the Notes to be issued does not exceed 6,250 euros. Beyond 6,250 euros, the application must be made to the government.

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