Denmark: Gambling Laws And Regulations 2022March 7, 2022
Denmark has very liberal regulations when it comes to gambling. Any company that has obtained its license from the Danish authorities (Spillemyndigheden) can set up a gambling business.
Denmark has very liberal regulations when it comes to gambling. Any company that has obtained its license from the Danish authorities (Spillemyndigheden) can set up a gambling business. Denmark being one of the wealthiest countries in the world means there is a pool of wealthy customers to make profit.
Since the introduction of new gambling regulations in 2012, the Danish gambling space has experienced a huge boom as the new laws released the Danish gambling market from the Monopoly of Danske spill and opened it up to both local and foreign investors.
The body responsible for the regulation of the Danish gambling market is the Danish Gambling Authority (Spillemyndigheden). The Danish Gambling Authority is a body under the ministry of taxation in Denmark. This body helps to regulate and protect both the players and the gambling companies.
Some of the features of Danish gambling regulations are discussed below;
So far, it has been discovered that most gamblers in Denmark prefer gambling online to on-site.
Spillemyndigheden reports that in the whole of Europe, Denmark is only second to Sweden in terms of online gambling shares with over 54% of Danes preferring online gambling to on-site.
Apart from being the major choice of most Danes, online gambling in Denmark has been undergoing some revolutionary changes. For example, some gambling sites now allow customers to pay in cryptocurrency. Also, The advent of the casino affiliate model might be part of the reason for the surge in the number of online gamblers.
A lot of online casinos have been in operation in Denmark since 2012. And their activities have been regulated by the Danish gambling authority. Companies running online gambling are allowed to apply for licenses for casino games, lotteries, and sports betting.
Some of the games offered online in Denmark are; football betting, horse racing, dog racing, slot machines, lotteries, etc. And as one of the top affiliates, casinodanmark.com provides valuable information on the best online casinos available in Denmark.
There is also an avenue that people can use to start playing even without registering first. It’s called pay n play in Europe. They offer secured deposits, withdrawals, and KYC in one convenient package.
Taxation on Gambling
In Denmark, winners of gambling games must pay a tax from their winnings. This means that players are required to declare the amount they won, and relinquish some to the government in the form of taxation. This might be because online operators don’t deduct the tax before paying players their winnings.
Towards the end of 2020, the Danish government announced an increment in the amount of tax to be paid by gambling companies. On-site Casinos must pay 40% of their income, while online operators pay 28%. And Denmark operates a different taxation style from other countries. In the sense that they tax the total revenue and not the total wins of the casino which is more advantageous to the Danish government and less fair to the operators.
Mandatory ID Cards
Plans have been put in motion to introduce a “playing card” to all gamblers in Denmark. This would mean that players at land-based locations will need to show the ID before they are allowed to place bets.
The main purpose of this development is to reduce the risk of match-fixing and money laundering in the betting space. Another reason is also to make sure that underage minors are not allowed to gamble. With this new wave, all players must register, and all bets will be analyzed to check for foul play. The “playing card” also means that nobody can play anonymously again.
Gambling Licenses in Denmark
To operate in the gambling space in Denmark, you need to obtain a license from the Danish Gambling Authority. The license obtained from this body does not cover lottery and games of pure luck as the Danske spill still has a 100% Monopoly on that space.
The Danish Gambling Authority continues to monitor gambling operators even after issuing licenses to ensure that they provide gambling professionally. And also to ensure they do not provide gambling they are not licensed for.
No matter how popular they are, any website that has not obtained a license from the Danish Gambling Authority is deemed illegal. And usually, the Danish government responds by asking ISPs to restrict access to those betting domains. In 2018, the DGA restricted access to 24 online gambling platforms through ISPs due to them operating without a license.
There is a provision for people who wish to “banish” themselves from gambling in Denmark. This facility is called ROFUS. The ROFUS is Denmark’s register of self-excluded persons. People can choose to ban themselves for 24 hours, months, or even forever. Since the launch of the scheme in 2012, the DGA said about 4000 people sign up for the scheme yearly and in 2021, over 30452 people registered with ROFUS.
Gambling is a very lucrative venture, though the Danish government seems welcoming and liberal to the idea of gambling, some of their regulations like that of taxation and necessary licensing of both online and on-site gambling shows that they understand how much of a cash cow it is and they want a piece of the pie.
In contrast, laws like a mandatory ID for gamblers and ROFUS also show that the Danish government understands the risks that gambling brings in terms of money laundering, underage involvements, and addictions. They are putting appropriate measures in place to checkmate the problems.