Online Gambling Industry in Denmark in 2019-2020: Unique Opportunities for iGaming
Denmark is an independent Scandinavian country, which is included in the list of the richest nations in the world. It attracts foreign investors with a high standard of living. Any kind of commercial activity is welcomed here, including the gambling business, which is developing actively here.
The 2WinPower team of specialists has collected comprehensive information on the current economic situation in the country and the nuances of the development of the gambling industry. We are also ready to give some useful tips for those who want to run an online gambling business in Denmark.
Table of Contents:
1.1. Virtual Segment
1.2. Land-Based Locations
2.2. Tariff Scale
Until 2010, the gambling business within the territory of this jurisdiction belonged to the only monopolist — the Danske Spil corporation. Today, anyone can count on receiving a gambling license (there are still some exceptions but we will talk more about that later).
According to the report of Spillemyndigheden (a local gambling regulator), in the second quarter of this year, online businesses has increased its revenues by 6.1%. Thus, total receipts were 256.1 million dollars.
The distribution of profits between the segments looks like this:
The percentage ratio of revenues of the virtual gambling segment
71,9% of consolidated revenues
11,6% of the total income
8,6% of the profit of the industry
The gambling industry in Denmark is represented by both offline platforms and the virtual market. According to statistical reports of the local regulator, in the second quarter of 2019, the turnover of the land-based market has increased by 6.5%.
The total income of the sector has reached 98 million Danish kroner. Moreover, about 29.6% of the total profit came from the equipment installed in public catering places. The remaining percentage falls upon the devices, which can be found in special gambling halls.
The gambling business that is based on sports betting brought 3.6% more than indicators of the last year. Profit in the betting segment has reached 1.25 billion Danish kroner.
As we have already mentioned above, this kind of business in Denmark is available to foreign operators with some restrictions. Despite the relatively free and open market, a specific set of games is controlled by Danske Spil and Det Danske.
Permit holders are not allowed to organise the following kinds of entertainment:
- lottery draws;
- scratch cards;
- acceptance of bets on dog and pigeon racings.
Despite the described exceptions, a foreign entrepreneur can run a poker business and some other gambling solutions.
The jurisdiction offers license applicants two options:
- A permit for accepting bets (it covers both the online business and the offline segment).
- A license for running an online casino business.
It is worth noting that gambling in Europe, including Denmark, is controlled quite strictly.
Despite the loyalty of the tax authorities and local regulators, the legalisation of your own project may require significant time expenditures. For example, the Scandinavian gambling regulator requires that applicants have at least eight special certificates with mandatory certification in several independent laboratories.
To obtain a gambling license in Denmark, operators must meet the following norms:
- A full legal age of applicants (they should be more than twenty-one years old and not having a guardian).
- A clean record and the absence of financial liabilities to the country.
- The absence of a declaration of bankruptcy.
- Mandatory inhabitancy within the territory of the jurisdiction or the appointment of a local representative (it can be either a legal entity or an individual).
- Mandatory registration of a company in Denmark or in the territory of another country of the European Economic Area (an alternative can be a representative office in the chosen jurisdiction).
- Production of evidence of the fact that a project has sufficient financial support.
With a positive result of the application processing, a document that makes a gambling business legal is issued after three-six months.
Answering the question of how to open a gambling project in Europe, it is impossible not to talk about the cost of legalization of the business.
For those applicants who decide to file a remote application, there are the following conditions:
- Filing an application — 273,500 Danish kroner (about 37 thousand euros).
- Filing an application for organising online games of a combined format — 382,900 kroner (about 52 thousand euros).
- Payment of fees and the annual due (the amount depends on the gross revenue of a gaming site).
The tax is calculated depending on the gross profit of the enterprise (the size of the player’s burned bets minus the paid winnings). For bookmaker’s offices and virtual services, a fixed tax of 20% of the gross revenue is provided.
If we are talking about poker and stock exchanges, then it will be necessary to pay commissions charged by the operator for his assistance in the organisation of the game session.
For the offline sector, the size of a fee can vary from 45% to 75%.
The size of the annual maintenance of the license depends on the income of the gambling establishment and is the following:
- 50 thousand kroner — for websites with revenue of fewer than 5 million kroner;
- 250 thousand kroner — for casinos with the income that varies from 5 to 50 million kroner;
- 450 thousand kroner — for entrepreneurs with a profit of 10-25 million kroner;
- 650 thousand kroner — for gaming sites with revenues of 25-50 million kroner;
- 1.5 million kroner — for gambling establishments with a profit of more than 100 million kroner.
To own a casino business in Denmark is a practical and reliable start. It can bring you huge profit since this activity will be carried out within the territory of one of the most economically developed countries in Europe. The main thing is to choose the right strategy.
Leave an application to the manager from 2WinPower, and we will select for you the most convenient and mutually beneficial cooperation conditions. From us, you can always find out the latest news from the largest economic regions of the world, and our experts will gladly assist in developing strategies for gambling projects of any format.
We are ready to offer a full package of services, and you just have to get a ready-made business and start earning money.
Become the owner of the most promising startup of our time already today!