A state-owned company called Danske Spil had been in control of games of chance in Denmark since 1948. However, a bill signed into law on Jan 1, 2012 changed all that. Denmark ended Danske Spil’s gambling monopoly and opened its market to private operators as well as offshore operators of online gambling services.
Today, Denmark has a well-regulated online gambling industry. Its crystal clear gambling laws not only enable offshore operators to run their businesses legally, but also generate revenue for the state and protect its players. Denmark’s gambling laws are a great example to countries that have not yet regulated online gambling.
Danish Gambling Authority
The Danish Gambling Authority, an executive body governed by the Danish Ministry of Taxation, is responsible for making the Danish gambling market safe, secure, licensed, and regulated for players, thus protecting them from illegal gambling and unfair online casino games.
The authority is entrusted with the task of administering gambling laws related to betting, lottery games, online casinos, public poker tournaments, gambling machines, and brick-and-mortar casinos. Its key duty is to grant licenses to companies that offer gambling services, to supervise their activities, and to monitor the country’s online gambling industry. Some of its other duties include ensuring responsible gambling, advisory services, and international cooperation.
Brief History of Spillemyndigheden
Established in 2000, the authority spent the first decade of its life controlling gambling machines placed in restaurants, kiosks, gaming arcades, and other physical locations. It also monitored the activities of Denmark’s seven brick-and-mortar casinos and Danske Spil, a company that enjoyed monopoly over the supply of lottery and betting products.
Simultaneously, the authority granted licenses to bingo games and charity lottery games. When the Gambling Act was brought into effect in 2012, the authority became independent and got its own director. The Danske Spil became the Danske Lotteri Spil and continues to enjoy monopoly over lottery games. Today, the authority licenses and regulates gambling activities in the country.
How to Apply for an Online Casino License in Denmark
In Denmark, online casinos can offer games such as Punto Banco, Baccarat, Blackjack, Roulette, bingo, poker, and other gambling games that are based on luck as well as skill. The following steps are required to apply for a license to offer online casino games to the citizens of Denmark:
- Danish online casino licenses remain valid for 5 years.
- If you want to operate an online casino in Denmark, you have to apply for a license with the Danish Gambling Authority.
- You have to use application forms 2-01, Annex A, Annex B, and Annex C, if required.
- The fee for an online casino gaming license is DKK279,500.
- The operator has to provide the authority access to its data warehouse, where it stores data related to its business.
- Once the Danish Gambling Authority grants you a license, you have to pay fees depending on your gross gambling revenue of the fiscal year.
- You must use the registration form numbered 29.063 to register with the authority.
- Fourteen months after receiving and using the license, you have to furnish a report on gambling supply using the form numbered 2-05.
What is Illegal Gambling in Denmark?
Any gambling service, online or land-based, provided without first obtaining a Danish Gambling Authority license is unlicensed gambling. I.e. MGA casinos without local license in Denmark considered unlicensed: operators are not allowed to advertise their services, but Danish players can play at such casinos.
A legal Danish online casino is one that has received a license from the Danish Gambling Authority. The gaming services are offered in Danish and registered players can play in DKK. Danish customer support is available to customers. The payment methods are those available exclusively in Denmark, such as Dankort. Licensed operators direct their advertisements towards Danish residents.
If you are player or an operator who comes across an illegal online casino operating in Denmark, you can approach the Danish Gambling Authority. The authority is also willing to listen to any problems or issues you face with an operator. Online casinos that have not been licensed in Denmark cannot advertise their products in Danish newspapers, broadcasting networks, radio, and magazines.
Since one of the responsibilities of the Danish Gambling Authority is to protect its licensed and regulated online casino gaming industry, it is always interested in receiving reports from its licensed operators. The authority uses these reports while supervising the market and dealing with unlicensed operators.
If the authority comes across an unlicensed operator, it will send the operator a petition to instantly terminate their gaming services. The authority will also receive permission from the court to block the website and will report the gambling operator to law enforcement agents.
If a newspaper, TV channel, or magazine publishes or displays advertisements of illegal online casinos, the authority has the power to stop the advertising and report the media to the police.
Responsible Gambling in Denmark
The Danish Gambling Authority regularly supervises the gambling market to make sure that licensed online casinos support responsible gambling. The authority communicates with treatment centres, the gambling industry, as well as national and international authorities so that it can provide the best support to problem gamblers.
The authority has the following features:
- ROFUS– This is a register of self-excluded persons, which makes it easy for players to request licensed online casinos to exclude them from their gambling services for a short or a long period of time.
- StopSpillet– This is a national compulsive gambling helpline, which the Danish Gambling Authority launched on Jan 2, 2019.
The Danish Gambling Authority offers full protection to its licensed operators and players. If you want to complain about an online casino or a game you have placed bets on, you can take your complaint to the authority. The authority may investigate the issue, but cannot settle any dispute you may have with your online casino. To retain its Danish license, however, gambling operators have to effectively resolve player issues at the earliest possible.
To conclude, Denmark is a well-regulated online casino gaming market, in which operators can offer legal online casino gaming services after obtaining a Danish license and players can play in a safe, secure, and well-regulated environment.