Denmark has been experiencing an increase in the popularity of online gambling since 2011. New laws have been introduced in an effort to regulate this expanding market and provide for both Danish customers and foreign companies a safe and regulated environment in which they can enjoy gambling activities and offer officially regulated gambling services. Even though the Government of Denmark is still attempting to monopolize online gambling and ban foreign companies from offering services to its residents, there are hopes and indications that Denmark will be more liberal and modernized in the future, as witnessed by the continued revisions and updates of the Danish Gaming Act. The largest gambling provider in Denmark is currently Danske Spill which owns over 60% of the entire online market and holds exclusive rights to provide lotteries and online betting on horses and dog racing, as well as pigeon carrier races.
Organization and Responsibilities
The online gambling market in Denmark is regulated by the Danish Gambling Authority, an independent government entity supervised by the Danish Ministry of Taxation. This organization has a range of activities spread across several fields including license granting to state lotteries, administration and control of sports betting, online and land based casinos and actively researching and participating in the development of local and international gambling. Once a license is granted, registration and inspection of license holders is handled by the Danish Tax Authority.
As outlined on Spillemyndigheden - the official website of the Danish Gambling Authority, the main aim of the DGA is to provide and maintain a regulated market that is safe for Danish customers and to ensure they are protected from unlawful gambling activities.
According to the ICLG there are multiple requirements under the Danish regulation that must be fulfilled in order for a user or a company to be granted a license. The license is issued for a period of 5 years during which the license holder is subject to inspection and numerous obligations which include the following:
- contacts with players and ownership of player data
- player support
- ownership of intellectual property rights with regards to games
- responsibilities regarding the operation of games and systems
- ownership of website or game client and major part of the gambling system
- controlling and reporting money laundering and illegal acts
- valid payment and financial transaction services
- the ability to pay all potential winnings
- the website and all communication must be in Danish; all transactions must be payable in Danish Kroner, although other languages and currencies are allowed in addition
- the gambling system must be tested and accredited by an independent testing agency before being offered to players
Once a license holder, the operator is also obliged to pay an annual fee based on their gross gambling revenue, as well as a weekly gambling duty.
In the year of 2012 when the new law was introduced, the Government issued 25 new licenses, some of which to well-known operators such as Tivoli Casino and 888 Group. But as a result of strict rules prohibiting unlicensed companies from soliciting Danish players, a total of 57 gaming sites were blacklisted in the same year. Some of the blocked sites include 7Red, Winner, Wintrillions, Casino DelRio, All Slots Casino, All Jackpots Casino, Titan casino, Casino Tropez and QuasarGaming.
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