Are Danes Relaxing Their Position on Gambling Systems?

Danish Gambling Authority revises a clause

It seems like the Danish Gambling Authority (DGA) has decided to relax its position regarding the location of parts of licensee's "gambling systems" which are outside its borders, proclaiming it allowed if it it is able to sufficiently oversee or supervise the system.

Namely, it is stated in the revised clause: “In special cases, the Danish Gaming Authority may allow part of the licensee’s gambling system to be located in a country that is not covered by a bilateral supervision agreement in accordance with subsection 2 if supervision by the Danish Gaming Authority of this part of the gambling system can be conducted in a satisfactory manner.”

According to a senior technical adviser at the DGA, Kristian Wind, "the official list of countries and jurisdictions to which this would apply has yet to be made official", but he added that this may include places where those gaming companies already operate, and that the Authority is currently negotiating with various national regulators on the topic.

“We played out various scenarios and looked at where various companies were situated today and what effect this would have on them and decided that some companies would not be able to operate in Denmark if we only allowed their systems to be located within Denmark,” Wind said.

At the moment, there are two “unfair competition” complaints filed to the European Commission by the Danish slot machine association and land-based operator the Royal Casino in Aarhus. The complaints refer to the proposed tax rate of 20 percent on gross win which will apply to online gaming as opposed to the 41 percent paid by land operators.

It was stated by senior associate in the EU & Competition Group at lawyers Olswang, April Carr: “It is difficult to estimate how long the Commission will take to deal with this complaint because there is no applicable deadline. It could well take a matter of months if the Commission takes the allegations seriously.” However, the DGA seems to be much more optimistic, underlining its high hopes that it will receive an answer on the proposal from the European Commission before August in order to complete its review.

Only when this happens, the market will be up for regulation that will open it to foreign operators.

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