Gambling Laws in Denmark: Regulation and Legality for Operators in 2024

Online gambling is well integrated into Danish society, attracting high participation rates from all walks of life. Furthermore, the consistent growth of online gaming is driven by a combination of a shift away from traditional betting and a regulatory environment that offers favorable conditions for new operators looking to enter the top 10 European online betting markets in 2024.

This article explores the laws and regulations surrounding gambling in Denmark, providing comprehensive guidance on the market environment, market entry, and the pros and cons for iGaming operators.

The History of Gambling in Denmark

The roots of organized gambling in Denmark can be traced back to the Middle Ages, when card games and lotteries first appeared. These types of games were popular among the nobility and commoners, who viewed such entertainment as a means of social activity and entertainment.

In the 19th century, gambling such as lotteries began to be organized to finance public works. Horse racing also became popular during this period, drawing large crowds with large amounts of money on the line. As gambling progressed into the 21st century, the unregulated nature of gambling led to concerns about fraud and the economic well-being of Danish citizens, and the need for regulation became a topic of discussion.

In response, the Danish government began to regulate to oversee gambling activities. The most significant legislation was the first comprehensive Gambling Act in 1948. This act created a state monopoly on most forms of gambling with the aim of curbing illegal gambling and directing revenues towards the public welfare. At the same time, a state-owned company, Danske Spil, was established to have a monopoly on most betting and lotteries.

This remained the status quo until the introduction of the Danish Gambling Authority, known as Spillemyndigheden, in 2000. The establishment of the DGA marked an important step towards creating a more structured and controlled gambling environment, which was soon followed by the Danish Gambling Act in 2012.

The gambling method enacted in 2012 has liberalized the Danish gambling market, and has become able to apply for a license under severe regulatory conditions. The transition was maintaining the monopoly of Danceke Spills for lottery and specific gambling, reflecting the changes in the people's attitude toward the regulated but prosperous gambling environment. Since then, the Denmark court has been moving in the direction of strengthening regulations on unreliable online gambling sites.

The following is an important milestone chronology in the history of Denmark's gambling:

1920S: The first organized gambling activity in lottery and betting

1948: DANSKE SPIL was established and a stat e-owned monopoly company was born.

2000: Established the Denmark Gambling Agency (DGA)

2010: Enacted new law for gambling liberalization

2012: Enforcement of the Denmark method related to gambling

2017: Strengthening regulations on unlicensed gambling sites

2024: Continuous amendment for fraud and laundering eradication

The Current Landscape in 2024

Today, the legal framework of Denmark's gambling is very matching the EU standard. It boasts a wel l-regulated market, such as online casinos, sports betting, and lotteries. In addition, Denmark's approach stimulates competition and is often quoted as a model that balances powerful player protection and freedom in the market regulated by the Denmark Gambling Agency.

Operator must obtain a license and obey strict regulations to protect players and secure fair play. Conversely, gambling business without license, such as unauthorized online gambling sites and underground gambling activities, is illegal. DGA has adopted strict measures, such as blocking unreliable websites and financial transactions in order to ensure thorough compliance and maintain the legal gambling market. In addition, unrecognized businesses are strict penalties for the deviation of the law.

Denmark's legal gambling framework has a comprehensive nature, which is highly trusted by the Denmark people, and has expanded the regulated gambling activities. All forms of Denmark's gambling are legal, except for those specially designed for minors and those sold for minors.

Regulations and Compliance

Denmark's gambling is defined by a series of regulations by the Denmark Gambling Act. The law has effectively liberalized the market, and private businesses have been able to apply for a license to the Denmark Gambling Agency. In order to get a gambling license in Denmark, operators must comply with some important laws and regulations.

Responsible Gambling Measures

In Denmark, compliance with responsible gambling measures is the highest priority. This includes the provision of sel f-exclusion options, restrictions, and forced breaks, as given to the Responsible Gambling Code. In addition, major initiatives are widely used to support consumers with gamblin g-related issues. It includes Rofus, a national sel f-exclusion registry that allows players to exclude themselves from all gambling activities, and Stopspillet, a helpline that provides counseling and support. In addition, operators are required to provide regular monitoring and intervening strategies to identify and support risky players.

Advertising Regulations

Igaming operators must comply with Denmark's strict advertising regulations to reflect responsible marketing practices. First, ads must not be targeted for minors or weak positions, and must clearly display information on responsible gambling and support services such as STOPSPILET. In addition, it is strictly prohibited to be misleading as if gambling can solve financial problems. In addition to this, all advertisements must be written in the operator's license number to provide transparency and accountability.

Executive Orders on Online Casino and Betting

The operator must comply with the online casinos and the betting administrative orders. These orders have high standards for Igaming operators. Includes requirements such as safe and fair game systems, regular audits, data protection protocols, etc. Operators must ensure a player identification process to prevent minor gambling and comply with the regulations on the prevention of money laundering. Operators must also provide responsible gambling tools and information on the platform.

Ongoing Compliance and Enforcement

In order to maintain a gambling license in Denmark, operators must comply with many continuous compliance requirements, such as regular audit and strong money laundering prevention (AML) measures. Compliance violations can lead to severe forced measures such as a large fine and licensed deprivation.

Anti-Money Laundering (AML) Practices:

All operators must apply robust anti-money laundering (AML) measures under the Anti-Money Laundering Act to prevent financial crimes. These measures include conducting thorough customer due diligence (CDD) to verify players' identities, monitoring for suspicious transactions, and reporting such activity to the relevant authorities. Operators must also keep detailed records on transactions and provide ongoing staff training on AML compliance.

Regular Audits and Reporting

Gaming operators must also undergo regular audits and comply with reporting requirements mandated by the Danish Gambling Authority. These audits verify compliance with operational and technical standards, financial integrity, and responsible gambling practices. Operators must submit detailed reports on their activities, including financial transactions, player protection measures, and anti-money laundering efforts. This ultimately ensures transparency, maintains the integrity of the gambling market, and fosters stakeholder and consumer confidence.

Fees, Taxes and Financial Obligations

Gaming license fees and taxes for iGaming operators in Denmark are distinctively competitive compared to other European jurisdictions, which often have high and complex tax regimes. This, among other reasons, makes Denmark an attractive option for operators.

Licence Application fees

A DGA license for betting covers both online and land-based sales of betting products and is valid for a maximum of five years. The application fee is DKK 315, 300 (approx. EUR 42, 270), which must be paid at the latest at the time of application submission. When applying for a combined license to offer both betting and online casino, operators must pay a total application fee of DKK 441, 400 (approx. EUR 59, 177).

Licence Renewals

A license renewal incurs an application fee of DKK 126, 100 (approx. EUR 16, 905), which must be paid at the latest at the time of submission. Operators applying for renewal of a permission to offer both betting and online casino games must pay a total fee of DKK 157, 700 (approx. EUR 21, 141).

In addition to the application fee, they must pay an annual fee calculated based on the gambling operator's gross gaming revenue (GGR).

Revenue Restricted Licences

Smaller operators can also apply for a revenue-limited license from the DGA to offer online casinos or online betting. To do so, their gross gaming revenue (the amount of bets minus winnings returned to players) must not exceed 1 million Danish kroner (approximately 134, 000 euros).

Please note that when applying for this type of license, only Danish gambling law applies, and not the Executive Decree on Online Casinos and Betting. Therefore, the technical requirements for a revenue-limited license are limited and the documentation requirements are not as extensive as for a 5-year license.

Ongoing Financial Obligations

In addition to license fees and taxes, Danish iGaming operators face ongoing financial obligations, such as regular audits and costs for compliance with anti-money laundering (AML) regulations. Investments in safe responsible gambling measures and player protection tools, such as self-exclusion, will also be required. In addition, operators should expect to incur costs related to data protection compliance and ongoing contributions to responsible gambling efforts.

Up-to-date information on licenses and fees for gambling and online casino games is available on the Spillemyndigheden website.

Taxes

In Denmark, the tax on gross gaming revenues is designed to be easy to understand, promoting transparency and ease of compliance. This tax is uniformly applied to all types of online gambling activity, ensuring a level playing field within the market.

Regardless of the type of license obtained, gambling operators must register with the Danish Business Agency using registration form number 29. 063, available on the Danish Tax Agency website. They must then report their gross gaming revenue (GGR) to the Danish Tax Authority (SKAT) on an ongoing and regular basis.

Most online gambling platforms do not deduct tax before paying out winnings or prizes. Players must then declare all winnings and pay the relevant taxes.

Danish Gambling Regulatory Authorities

In Denmark, a culture of trust and transparency has been established between regulators and operators. This collaborative environment fosters compliance and innovation, allowing operators to work closely with the Danish Gambling Authority to address challenges and enhance player protection.

The following are the main governing bodies regulating the Danish gambling market:

The Danish Gambling Authority (Spillemyndigheden)

The Danish Gambling Authority (Spillemyndigheden) is the main regulatory body overseeing gambling activities in Denmark. Its most important task is to license gambling operators and monitor their compliance with the country's laws and regulations. The authority implements strict standards for player protection, responsible gambling, and anti-money laundering measures. In addition, it acts as an advertising regulator, carries out regular audits and inspections, provides guidance to operators, and handles consumer complaints. By maintaining strict supervision, Spillemyndigheden ensures a transparent, fair and safe gambling environment, fosters trust between parties, and protects the interests of Danish players.

NSK (National enhed for Særlig Kriminalitet) - AML Regulator

The National Office for Combating Gambling Crime (NSK) is a specialized unit within the Special Prosecutor for Economic and International Crime (Statsadvokaten for Særlig Kriminalitet (SSK)). It plays a key role in regulating anti-money laundering (AML) in the gambling sector. NSK oversees the implementation and enforcement of iGaming operators' AML policies and ensures that operators comply with strict Danish and international standards. NSK's responsibilities include thorough investigation of suspicious activity to ensure operators have implemented robust AML measures such as customer due diligence, transaction monitoring and reporting obligations. Its oversight helps prevent financial crime and protects the industry from fraudulent activity.

Datatilsynet - Data Protection Authority

Datatilsynet, aka the Data Protection Authority, plays a key role in the oversight and protection of personal data in the gambling sector. In 2024, its responsibilities will also include ensuring that iGaming operators comply with strict data protection regulations, especially the General Data Protection Regulation (GDPR). Datatilsynet's role extends to protecting sports bettors' personal information, requiring operators to implement strict data security measures, obtain clear consent for data processing, ensure rights to access and delete data, etc. Datatilsynet regularly audits operators and enforces compliance through fines and sanctions. This level of oversight fosters a safe environment for bettors and strengthens trust in the regulated Danish gambling industry.

Financial Supervisory Authority (FSA)

The FSA's core obligation in relation to online gambling in Denmark is the enforcement of anti-money laundering regulations. To this end, operators must conduct thorough customer due diligence, monitor transactions and report suspicious activity. iGaming operators must also cooperate with the tax authority (SKAT) to ensure proper reporting and payment of gambling-related taxes. This includes keeping detailed financial records, filing regular tax returns and complying with specific tax regulations.

Consumer Ombudsman

The Consumer Ombudsman plays an influential role in regulating advertising and marketing practices in the Danish gambling industry. The Consumer Ombudsman's main responsibility is to ensure that all promotional activities of iGaming operators are fair, transparent and do not mislead consumers. This includes scrutinizing advertisements to prevent false and misleading claims, as well as checking compliance with responsible gambling guidelines. The Ombudsman has the power to provide guidelines to the industry, conduct investigations and impose sanctions for non-compliance. The Ombudsman's oversight maintains high ethical standards in consumer protection, further supporting public trust.

Opportunities for iGaming Operators

The Danish iGaming market offers great opportunities and growth potential for operators. Denmark's favorability is underpinned by its transparent regulatory framework, competitive tax rates and easy entry costs compared to other European jurisdictions.

As with other Scandinavian countries, Danish citizens have shown a strong interest in online gambling, which is supported by the country's advanced infrastructure and high digital literacy. This has resulted in a consistent preference for online gambling over traditional gambling, creating a customer base that is easy for operators to enter.

However, operators must consider that Denmark is an established market, with major players such as Danske Spil, Bet365 and Unibet maintaining significant market share. Spillemyndigheden's regulatory approach promotes a level playing field to encourage new entrants and stimulate competition.

Overall, the Danish iGaming market offers favorable opportunities for operators compared to many other EU markets.

Advantages of the Danish Market

• A transparent and clear regulatory framework ensures fair play.
• There are many online gambling users.
• The tax rate for the total gaming income is 28%, a competitive uniform tax rate.
• License costs are lower and clear compared to other EU markets.
• Established online market with consistent growth trends.
• It is technically advanced and has high trust and market acceptance.

Disadvantages of the Denmark market

• The competition is fierce and new entry is difficult.
• Advertising regulations are severe and marketing strategies are restricted.

How to Apply for a Gambling Licence in Denmark

As with all the main gambling areas, the Denmark gaming license application requires a systematized process. In the case of Denmark, this is managed by Danish Gambling Authority (SpillemyNDIGHEDEN), and the iGaming operator can apply for various types of licenses, including online casinos, sports betting, and lan d-based casino licenses.

The following are conditions and restrictions for operators who wish to obtain legal gaming licenses in 2024.

Financial standards

Operators must hold and maintain sufficient financial resources to ensure the stability and fairness of operation.

Technical standards

In order to ensure the fairness of the game, prevent fraud, and protect the player's data, it is necessary to introduce a strong technical system.

Regular audits

The licensed operator must be a regular audit and submit a detailed report to the Denmark Gambling Agency.

Responsible gambling measures

Operators must provide sel f-exclusion options, payment restrictions, and provide information on responsible gambling resources.

Advertising restrictions

It is necessary to make sure that the marketing method is compliant with the regulation of Denmark and is not a misleading, but not targeting the weak.

The Application Process

There are several important steps for applying for gambling licenses in Denmark. Here is an overview of the step:

Step 1: Preparation of documents

Identify the type of license you need and prepare the necessary documents. Usually, this includes a comprehensive business plan, including financial statements that provide financial stability. In addition, documents such as the ownership structure of the company, the details of the main character, the technical system to be used, and the detailed information about software are also required.

Step 2: Register on the online website of the Denmark Gambling Agency and create an account.

Step 3: Submit an application form

Download and fill in the application, upload all necessary documents such as business planning, financial statements, and technical specifications.

Step 4: Payment of application fee

The application fee depends on the type of license to apply.

Step 5: Compliance document

Prove that you comply with Danish regulations, including responsible gambling measures, anti-money laundering (AML) protocols, and data protection standards.

Step 6: Review and evaluation

The DGA will review your application, conduct a background check, and assess whether the operator has the ability to meet the regulatory requirements.

Step 7: Respond to requests for additional information

Be prepared to respond to any requests for additional information or clarifications from the Danish Gambling Authority (DGA) during the review process.

Step 8: Wait for the license decision

The DGA will notify the applicant of its decision. If approved, the operator will receive its license and can begin operations.

Post-application requirements and notes

The DGA typically takes 3-6 months to process and approve a gaming license application. This timeline may vary depending on the completeness and complexity of the operator's business model. To expedite the process, it is important that applicants ensure that all required documentation is accurate and complete at the time of submission.

To maintain their license, operators must:

1. Submit regular financial and operational reports to the Danish Gambling Authority.
2. Subject to regular audits to ensure ongoing compliance with all regulatory requirements.
3. Implementing and maintaining responsible gambling measures, such as self-exclusion programs and deposit limits.

Market Access in 2024

Altenar has won numerous awards for providing sportsbooks to hundreds of online sports betting sites in over 30 countries worldwide, including notable success in Nordic countries such as Sweden and Denmark.

Contact Altenar today to help you enter the market in Denmark and continue to grow your brand.

Disclaimer

This information is not intended as legal advice and is extracted solely from open sources. Furthermore, Altenar assumes no responsibility for its use.

ComeOn has been granted a Danish gaming licence

Gaming operator ComeOn has obtained a Danish gaming license for casino and sportsbook.

ComeOn, which already holds gaming licenses in Sweden, Malta, Schleswig-Holstein and the UK, and a sports betting license in Poland, has also obtained a casino and sportsbook license in Denmark. The license is valid for five years, the longest period issued by the Danish Gambling Authority.

"We are excited to offer our products and services to Danish players. We have been preparing for this for a long time and we have really interesting things planned," said Lahcene Merzoug, CEO of ComeOn.

ComeOn is a leading player in the fast-growing market of online gaming via mobile, tablet and computer, with well-known brands and strong positions, mainly in casino and sports betting.

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The license will allow Romanian players to access a variety of games from the CG Games portfolio, including Sweet Treasure, Crash Soccer, Wild Miner, Diamond King and Break the Bank.

"This is an important step for CG Games. We have had great success with our iGaming platform in the Romanian market for many years and this license extension means we can increase our offering to our partners," said Steven Valentine, Chief Commercial Officer at Comtrade Gaming.

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Betsson Group shortlisted for 4 awards at the Global Regulatory Awards

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Betsson Group has been nominated for four awards at the 8th Global Regulatory Awards. The awards, which have been held annually since 2017, are organized by Vixio, a leading provider of regulatory intelligence solutions, and celebrate the achievements of individuals, teams and organizations in the gaming industry who have demonstrated excellence in compliance, corporate social responsibility and safer gaming.

According to the official website of the Global Regulatory Awards, Vixio received a record number of applications this year, making 2024 the most competitive year yet.

The 2024 Global Regulatory Awards ceremony will be held in December 2024. The awards are scheduled to be held in London on the 4th.

Betsson Group is nominated for three corporate awards and one individual award:

1. Operator commitment to compliance

This award celebrates a pioneering compliance initiative by a gambling operator that has significantly improved in-house expertise and set a new standard for industry best practice. Judges will be looking for initiatives that demonstrate transformational improvements in processes, technology, reporting and training while also promoting best practices across the industry.

2. Chief Compliance Officer of the Year - Corinne Valletta

This award celebrates an exceptional compliance leader who has consistently exceeded expectations, deftly navigated regulatory challenges and significantly raised compliance standards within their organization through practical solutions, operational transformation and thought leadership. The award seeks a leader who actively collaborates with management, teams and regulators to foster a culture of compliance. Judges will be looking for specific examples that demonstrate the nominee's impact, such as attending industry conferences, introducing training and providing thought leadership.

3. Compliance Team of the Year

This award recognizes a compliance team within an organization that has proactively fostered a culture of compliance, effectively responded to regulatory changes and driven the organization to lead in new compliance standards. The judges will evaluate how the team fostered a compliance culture, collaborated across the organization, initiated training, and influenced business practices and industry initiatives, including trade associations. Special consideration will be given to the team that led the organization into new compliance jurisdictions in emerging markets.

4. Legal Team of the Year

This award recognizes the legal team that ensures regulatory compliance and protects the company's reputation by demonstrating exceptional problem-solving, analytical and organizational skills, and proactively advising management. The judges will evaluate how the team promotes best practice, keeps the business ahead of regulatory changes, and minimizes the impact on both revenue and day-to-day operations.

In conclusion, the above nominations highlight Betson's strong compliance culture and commitment to raising compliance standards to ensure a safe and stable business.

ComeOn has been granted a Danish gaming licence

Gaming operator ComeOn has obtained a Danish gaming license for casino and sportsbook.

ComeOn, which already holds gaming licenses in Sweden, Malta, Schleswig-Holstein and the UK, and a sports betting license in Poland, has also obtained a casino and sportsbook license in Denmark. The license is valid for five years, the longest period issued by the Danish Gambling Authority.

"We are excited to offer our products and services to Danish players. We have been preparing for this for a long time and we have really interesting things planned," said Lahcene Merzoug, CEO of ComeOn.

ComeOn is a leading player in the fast-growing market of online gaming via mobile, tablet and computer, with well-known brands and strong positions, mainly in casino and sports betting.

Source: The latest news of European Gaming Media Network This is a phented news article. Photo credit or photo source can be found in the source article: Comeon obtains a Denmark gaming license

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Related topic: European gambling industry

Gyorgy Molnar started his career with content marketing and started working as our editor / content manager in 2016. George gained a lot of experiences in interviews and new s-valued content, and became responsible for content in 2017. He is the news of the news shared on multiple websites, part of European Gaming Media Network.

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Latest News

NetBet Extends Its Danish Reach with Multiple Gaming Partnerships

September 13, 2024

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Well-known European gambling brand NetBet received a license from the Danish gambling authority (Spillemyndigheden) in late February 2024, expanding its global reach in one of Europe's most developed internet gaming markets. The NetBet platform partnered with top-tier providers Pragmatic Play and Push Gaming to offer Danish games of chance enthusiasts titles such as Razor Returns, Sweet Bonanza and Gates of Olympus.

NetBet's entry into the region was greeted with a positive reception, but the Malta-headquartered operator soon sought to build on its established momentum by entering into multiple gaming partnerships with quality gaming suppliers that have established themselves well in the industry.

In late March 2024, Playson, one of the world's fastest-growing digital entertainment suppliers, revealed that it had partnered with NetBet Denmark to supply the operator's growth through a diverse selection of titles boasting well-known mechanics such as Hold and Win.

A week after the Playson deal, NetBet Denmark PR manager Claudia Georgevici announced that the company is now dealing with 1X2 Network. A day later (April 5), two new NetBet provider agreements were announced between Amusnet Gaming and G Games. The former is the former digital division of brick-and-mortar equipment supplier EGT, which boasts a catalogue of over 200 games, while the latter is the creator of successful slots like El Diablo, Thor's Egg Hunt and Cheeky Fruits 6 Deluxe.

The online casino, sports betting and poker operator also closed out a productive April by signing deals with Sweden's Nolimit City, Malta's Play'n GO, Stakelogic and Wazdan.

The Danish Online Gambling Market In 2012, Denmark chose to regulate interactive games and sports betting over the internet through gambling legislation, establishing a state monopoly in this field through the Danish State Lottery (Danske Spil), which led to the creation of the Danish Gambling Authority, known as Spillemyndigheden.

Since 2012, Denmark has become one of the most booming gaming areas in Europe, and Danish Gambling Authority has increased its gambling rate by 7 % in the first ten years since the Danish industry existed. Most of this increase has occurred in the Internet field. The Denmark remote gambling market is expected to increase $ 1. 16 billion in 2024, and is expected to rise 3. 23 % a year in the next five years and to reach $ 1. 36 billion. I am. In 2024, half of the revenue ($ 570 million) should be received from online casinos, with a user penetration rate of 15. 5 %. Sportsbetting will bring $ 360 million in 2024, and Denmark's Internet lottery is expected to increase $ 230 million this year.

These numbers are impressive, but compared to the market in 2022 and 2023 (per user). Online casinos will continue to decline year by year, but remote sports betting will be steady.

According to a Danish Gaming Authority survey, the Danish people are the most participating in lottery and scratch card gambling, while the population is 13. 4%playing these games, while the sports betting is 8. 6%, online casinos. Format products are 4. 1%.

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