Danish Gambling Authority
Basic information
Gambling activity in Denmark was completely legalized. Operators can provide their services both in land-based establishments and on online platforms. The gambling business in this country is completely nationalized and regulated by the Danish Gambling Authority. This government body is subordinate to the Ministry of Justice and deals with issuing licenses for casino operators.
In 1948, the complete monopolization of the gambling business in Denmark began. Players could only use the services of the state company Danske Spil. And already in 1990, a list of legislative acts was issued that regulate the gambling entertainment industry in this country. Since then, private operators have been able to also engage in legal gambling activities and provide their services both in land-based casinos and online platforms.
According to the latest report from the Danish Gambling Authority, the gross income from the gambling industry has reached nearly DKK 9 billion, or its equivalent of $1.3 billion. Of this amount, almost 4 billion DKK, or 550 million dollars, was brought by online casinos and bookmakers.
Features of regulation of the gambling industry
Gambling in Denmark includes the following activities:
- Games, the result of which is determined randomly;
- Any types of bets;
- Entertainment, as a result of which you can get winnings as a payout on bets.
Based on the above criteria, the Danish Gambling Authority licenses the following gambling activities:
- slot machines;
- Lottery;
- Poker;
- Sports betting.
Licensing of land-based casinos
Operators of land-based casinos, gambling halls, casinos in bars and hotels, as well as betting shops can provide gambling entertainment services to customers. Online gambling business is also completely legal.
Poker is a special type of gambling activity, for the regulation of which additional regulatory legal acts have been issued. The Danish government distinguishes between gambling poker in gambling casinos, in which private individuals participate, as well as sports poker. No license is required to host sports poker competitions. Such activities are regulated by the Poker Law. Such tournaments must be held in a public format with the physical presence of participants. And although the participants have an economic benefit, such competitions are classified as sports events and are not considered gambling entertainment.
Legislative framework for gambling regulation
To regulate and control the gambling entertainment industry in Denmark, a special body called the Danish Gambling Authority was created. It reports to the Ministry of Justice and carries out its activities on the basis of the Law on Gambling (Act on Gambling).
Companies that conduct their activities in the gambling industry must act in accordance with applicable law. The legal framework in this area is built on the basis of the Act on Gambling. The only area that is not subject to this legislation is sports poker.
Additional regulations
In addition to this main act, a list of private orders was also adopted. Let’s consider them in more detail:
- The Executive Order on non-profit lotteries was created to regulate lottery activities;
- Executive order on land-based betting and Annex 1 – a legal act that regulates betting activities;
- Executive order on gaming machines in arcades and restaurants – an order that controls the activities of operators that provide gaming machines for their customers;
- Executive order on online casino – a document that regulates the activities of an online casino;
- Executive order on land based casinos – an order on the basis of which the gaming process is organized in land-based casinos.
Requirements for obtaining a Danish Gambling Authority license
In order to obtain a gambling license from the Danish Gambling Authority, it is necessary to submit an appropriate application for consideration to this state body. Can apply for a license:
- Founders who have reached the age of 21 and have a certificate of good conduct;
- Companies that can confirm an impeccable reputation in the gambling business;
- Companies whose creation is justified.
In order to obtain a gambling license in this jurisdiction, you will need to invest a considerable amount of money. The cost of obtaining a gambling permit can vary from 50,000 to 1,500,000 DKK, or their equivalent of 7,120 – 213,500 dollars. Online casino operators applying for a license from the Danish Gambling Authority will need to pay a business platform fee of 250,000 DDK (35,500 USD).
Varieties of gambling entertainment
According to the latest report from the Danish Gambling Authority, the gross income from the gambling industry was almost DKK 9 billion, or the equivalent of $1300,000,000. If we consider income in the context of gambling entertainment industries, we can provide the following data:
- Lottery business – DKK 3115000000 or $443300000;
- Sports bets – 2175000000 DKK or 309500000 dollars;
- Online casino – 1564000000 DKK or 222500000 dollars;
- Slot machines – 1499000000 DKK or 213300000 dollars;
- Offline casino – 379000000 DKK or $53900000;
- Horse racing – 118000000 DKK or 16800000 dollars.
Online casino activities
Almost 50% of the total state income from the gambling entertainment industry is brought by online casinos and betting offices. According to statistics, players make 64% of bets on the Internet. The Danish Gambling Authority license site has many sections with statistical information. After analyzing these data, we can conclude that DGA-licensed casino customers prefer the following types of gambling entertainment:
- slot machines – 68-72%;
- poker – 9-12%;
- roulette – 5-6%;
- blackjack – 5-6%;
- other games – 9-11%.
Requirements for license holders
Most of the defense of the gambling industry in Denmark has been nationalized. Therefore, in order for an online casino to obtain a state license, it is necessary to fulfill a list of strict requirements. If foreign operators want to carry out gambling activities in Denmark, they must meet the following criteria:
- The gaming platform must be in Danish. If the owner of the online casino is a foreign operator, Danish must be in the list of available languages;
- Danish currency must be available for financial transactions;
- The gaming platform must provide maintenance for users from Denmark;
- Among the available payment systems, those that operate exclusively in Denmark should be available.
It is important to bear in mind that the tax for foreign operators who apply for a state gambling license from the Danish Gambling Authority will be significantly higher than for Danish residents. Foreign operators are required to pay tax in the amount of 20% of the total annual profit.
Popular slot machines
Online casino users licensed by the Danish Gambling Authority prefer modern five-reel slots. They are especially attracted by profitable bonuses and unusual gameplay. But classic slot machines are also in good demand. Also, the choice will depend on the age category and social status of the player. Men over 30 prefer classic slots, while women and young people are attracted to modern slot machines with unusual graphics. The most demanded and popular slots in Denmark:
- Gemix;
- Starburst;
- Mega Moolah;
- Random Runne;
- Hong Kong Tower.
Taxation of the gambling business
In order to submit an application for a gambling license, the operator will need to pay a fee of 285,000 DKK. If the operator wants to engage in both activities at once (sports betting and online casino), he will need to pay a fee of 400,000 DKK. If, after a thorough verification procedure, the commission rejects the application for a license, the operator will be refunded half of the amount spent.
All Danish Gambling Authority license holders are required to pay an annual license fee. The amount of the fee will depend on the size of the operator’s profit in the previous year.
It is also worth noting that it is mandatory to pay an annual income tax in the amount of 20% of the income of the gambling platform. Corporate tax is also subject to payment, the amount of which is 25% of the company’s net profit.
Procedure for issuing a DGA license
In order to obtain permission to carry out gambling activities, potential licensees need to fill out completed applications and the necessary attachments to them. You will need to provide the following information:
- A detailed description of all gambling entertainment presented on the site;
- Location of the company, as well as its registration number;
- Photocopies of all registration documents;
- Business plan of the enterprise;
- Certificate of non-conviction and absence of debts from a legal entity;
- Contact details of the company representative;
- Signatures of the entire management team of the company, which confirm the accuracy of the information provided.
Summing Up
The gambling entertainment industry in Denmark is fully legalized and regulated at the legislative level by the Gambling Law. On this page, you will be able to find online casinos that have received Danish Gambling Authority license and enjoy a safe and fun gaming experience.
