Denmark Online Casino Guide

Gambling Industry Overview in Denmark

The following approaches will be presented

  • Gambling legislation in Denmark
  • Gambling authorities in Denmark
  • Online casinos in Denmark
  • and more

The gaming and gambling market in Denmark has been partially liberalized since January 1st, 2012. The major part of the activities related to gambling are put under the control of a largely state-owned company that is known under the name Danske Spil. The company in question has been operating for almost 7 decades – since 1948.

Gambling Legislation in DenmarkThe rules were considered as too tight and yet unclear. However, some alterations were implied through the new Act No. 848 of 2010 on Gambling. The Act came into force on January 1st 2012. After the implementation of the new law, the gambling legislation of Denmark is considered explicit enough to be cited as an example to other countries that are intending to change their gambling regulations.

Overview

Denmark has long been a country with a monopoly imposed over the gambling operations, both the ones situated in land-based and virtual casinos. Then it was vastly changed after the new legislation on the matter came into effect.

The current Danish gaming and gambling legislation has several major purposes:

  • keeping the overall consumption of gaming activities at a certain level;
  • providing a fair, responsible and fair manner when it comes to gaming operations;
  • preventing the more vulnerable people, including youngsters, from being exploited through any gaming operations or becoming addicted to gambling;
  • preventing gambling being used as a means to support or help crime

The major law that sets up some rules concerning the different forms of gambling is the Danish Gaming Act.

The Danish Gaming Act, as part of the current country’s legislation, is divided in several parts. Part 1 is focused on the purpose and scope of the Act. Then, Part 2 is concentrated primarily on providing some definitions and analysing certain terms of the law. The next part of the law deals with the variety of licences for each type of games, while Part 4 is focused on providing the criteria for offering gambling operations on the territory of Denmark.

The rules on duty of disclosure, sale and marketing policy are described in Part 5 of the law, while Part 6 talks about the requirements towards managers and staff of the gambling venues. The rest of the parts are concentrated on the administrative provisions when it comes to fees and taxes, as well as the order that needs to be followed when it comes to withdrawal and expiration of licences.

The supervision and exchange of information between the DGA and other bodies of the country’s government is also set in the law’s provision. Part 12 of the law is focused on the penalties imposed in cases of violating the law, and the last part of the Danish Gaming Act contains the conditions under which the Act itself is to come into force.

Relevant Legislation

Gambling Legislation in DenmarkCurrently, all gambling activities in Denmark are being monitored, controlled and regulated by the so-called Danish Gambling Authority (the DGA), which on the other hand, is subjected to the country’s Ministry of Taxation.

The issues related to the legislature of the country on the matter, including European regulation, are handled by a department of the aforementioned Ministry.

Gambling duties’ collection, however, are not among the DGA’s responsibilities. It is entrusted to another entity that operates under the hat of the Danish Ministry of Taxation – the Danish Tax Authority (the SKAT).

When it comes to providing gambling services on the territory of the country, these activities are regulated by the Danish regulation on marketing and consumer protection. The latter is included in the responsibilities of the Consumer Ombudsman of Denmark. The control and monitoring is also entrusted to the Danish regulation on payment services, which work is subjected to the Financial Services Authority of Denmark.

The progress of the country towards a competitive online gambling market was first a bit unclear, especially considering the state-owned gambling monopoly that was imposed in Denmark. Currently, online gambling activities are regulated through the Danish Gaming Act.

Originally, the Danish Gaming Act was part of an agreement reached between the country’s Government and the rest of the political parties. It was first proposed by the Minister of Culture and Minister of Finance, who both suggested for a law concerning the profits from gambling activities and one that was related to the operation of Danske Spil. The two proposals were combined within the gambling law that is currently in action in Denmark.

As mentioned above, the primary regulation of the gambling market in the country comes from the Gambling Act. The latter sets a clear differentiation between three major categories of “games” – betting games that depend on the result of a certain event, lotteries that are based on chance, and combination games that the chance of winning depends on a combination between skills and luck.

All games and activities, which fall within these categories, are to be covered by the scope of the Gambling Act.

Gambling Legislation in DenmarkThere is also a number of secondary Executive Orders that come as a completion of the country’s Gambling Act. These Executive Orders are as follows: from No. 65 to No. 67 and from No. 1301 to No. 1304. The first three ones cover land-based betting operations, web-based betting and online casinos. The next four Executive Orders cover charitable lotteries, gaming machines located in arcades in restaurants, land-based casino venues and the compensation rates for some games.

The General rules on marketing settled by the Danish Marketing Practices Act also come as regulatory ones when it comes to the provision of gambling on the territory of the country.

There have been some changes made in the country’s major legislation after it was officially imposed in Denmark. First, a public consultation related to new and updated certification and technical documents was issued by the DGA in March 2014. Then, the DGA made another change in September 2014 – one that was related to the exemption regarding the online casino platforms that would support the means of digital signature in the future.

There was another change in December 2014. Then, the Minister of Taxation was announced by the DGA to have signed the already-proposed alterations in the aforementioned executive orders concerning online casino and betting operations.

Online Gambling

Internet Gambling in DenmarkThe online gambling market of Denmark was closed for outlanders until 2008. since then, there have been rumours that the country intends to open it for online casino operators. Two years later, private operators that offered online gambling companies started hoping that they would be permitted to enter a competition with the local ones.

At first, online gambling in Denmark was controlled by Danske Spil, which made the monopolism imposed on the country’s gambling and gaming market last for as long as possible.

Nowadays, the new gambling operators that enter the Danish online gambling market must first get a licence from the Danish Gambling Authority (DGA). The country, however, is still trying to give an advantage to its state-owned Danske Spil company, so the Government has made sure that foreign gambling operators will get their licences after a lengthy procedure.

The DGA has set specific rules in order to deal with the large number of outlanders expected to apply for a licence. All applicants go through a special evaluation carried out by the DGA before they get a permission to start operating within the country’s borders after the preliminary overview.

More than two dozens online gambling operators were licensed by the SKAT over the first year after the new law got into effect. At the same time, however, the Denmark’s Government is unyielding when it comes to the prevention against unlicensed foreign gambling websites to enter the Danish online gambling market.

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