The European Commission approved on Friday previously proposed amendments to Denmark’s existing gambling laws that were intended to put an end to Danske Spil’s monopoly over betting on horse races as well as over online bingo, iGaming Business reported today.
The revised regulations will allow private gambling operators to apply for a license to provide Danish customers with horse race betting options as well as online bingo ones. The move aims to provide the country’s stagnant horse racing industry with a much-needed boost and to prevent local players from playing online bingo in an unregulated, black market, environment.
According to multiple industry reports, Denmark’s horse racing sector has experienced significant slowdown in its development for the past decade. It is believed that private betting operators will be able to rekindle interest in this type of activity by promoting betting on horse racing and bringing diversity in the betting segment.
Under the regulatory proposal, Danske Spil will also lose its monopoly over betting on dog and pigeon racing, giving way to interested private operators as well.
Being approved by the European Commission, the new regulations are slated to take effect on January 1, 2018. Thus, Denmark will become the first Nordic jurisdiction to scrap monopoly over betting on horse racing.
Under the amended law, licensed horse racing operators will have to contribute 8% of sales on horse race betting products to fund the development of the Danish horse racing industry. The proposed amendments contain further provisions that are hoped to revitalize the dormant sector.
As for online bingo, Danish authorities justified their decision to end Danske Spil’s monopoly with the fact that multiple reports have shown Denmark’s black market has long been drawing players away from regulated operations. According to local lawmakers, the monopoly model is no longer the most sustainable option for the sector and that better results will be yielded, if private operators are allowed the opportunity to serve Dutch bingo players.
Denmark opened its market for licensed online gaming operations in early 2012. Since then, international operators have been able to apply for a license for the provision of online gaming and betting products to local gambling customers.
According to information released by the Danish Gambling Authority, Spillemyndigheden, Denmark’s online gambling market was worth DKK3.7 billion ($559.4 million) in 2016, up from DKK3.3 billion in 2015. Sports betting was Denmark’s highest grossing online gambling sector, generating revenue of DKK2.2 billion in the year ended December 31, 2016. Online casino games, excluding online poker, contributed DKK1.4 billion to the whole. Revenue from online poker amounted to DKK148 million.
