The amusement park operator is confident the Tivoli brand and Danske Spil’s commercial skills are a perfect match for further future growth
Danish gaming and entertainment company Tivoli A/S has agreed to transfer the operation of its TivoliCasino.dk online casino to Danske Spil A/S, Denmark’s former gambling monopoly.
Under the agreement, Danske Spil will pay an undisclosed amount for the TivoliCasino.dk assets. In addition, the gambling operator will pay royalties to Tivoli for the next ten years for being allowed to use the TivoliCasino brand. The duration of the agreement is ten years, but the two companies will be able to extend it if both parties find the move a profitable one, it also became known.
TivoliCasino.dk went live in 2012 when Denmark’s online gambling market was liberalized and re-organized in a manner that enabled interested companies to obtain licenses from local regulators to service Danish customers in a regulated environment. Danske Spil was the only operator authorized to provide gambling services up to that point.
Before venturing into the world of online gambling, Tivoli gained global recognition for the operation of the Tivoli Gardens amusement park in Copenhagen. Launched in the summer of 1843, Tivoli Gardens is the second-oldest operational amusement park in the world and one of Europe’s most visited facilities of this kind.
A Natural Step
Commenting on today’s announcement, Tivoli CEO Lars Liebst said in a statement that the launch of the TivoliCasino.dk gambling website was a natural step for the gaming and entertainment group, as Tivoli Gardens “have offered games within its physical settings” for more than 100 years.
Mr. Liebst went on to say that, in Danske Spil, his company has found “a strong partner which shares [their] values”
Mr. Liebst expressed confidence that Tivoli’s brand and the commercial skills Danske Spil has developed will secure the continued growth of TivoliCasino.dk.
Tivoli adjusted its extraordinary items to DKK220 million before tax from DKK100 million as a result from the transfer of the TivoliCasino.dk assets to Danske Spil.
With the liberalization of Denmark’s gambling market in 2012, Danske Spil, which previously held the monopoly for the operation of gambling services in its home country, had to re-organize its growth strategy and to make sure that the increased competition would not have a disastrous effect on its own business. According to recently released data by the operator, it has invested millions to overhaul its digital arm and make it more competitive.
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