Elo works fine for games with luck. The effect is that the total rating spread of the population, from beginner to expect, is less in total. If a particular game has enough luck that there is never a 90% chance to win, then the ratings will not reach a 400 point spread.
This is not a problem at all. The problem with the Elo rating system as applied on BGA is not that it was designed for zero luck, but rather that it was designed for 2 player games. The way BGA assigns rating changes at higher player counts was never intended. And so you get occasional situations where players are not trying to win the game, for rating reasons. It seems to work well enough usually, but not always.
Another possible problem with Elo ratings is that it works best in a large and active player population with well-distributed skill levels. This is often not the case for games on BGA.
This is not a problem at all. The problem with the Elo rating system as applied on BGA is not that it was designed for zero luck, but rather that it was designed for 2 player games. The way BGA assigns rating changes at higher player counts was never intended. And so you get occasional situations where players are not trying to win the game, for rating reasons. It seems to work well enough usually, but not always.
Another possible problem with Elo ratings is that it works best in a large and active player population with well-distributed skill levels. This is often not the case for games on BGA.