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Spillemyndigheden – the Danish Gambling Authority
Laws are essential to ensure the efficiency and effectiveness of any activity. Every industry needs to be overseen and regulated in order to avoid simple mistakes and to ensure fair business practices. This especially applies to online gambling. Gambling in Denmark has a long history but was initially limited to the lottery and only one casino nationwide. In the early 90s, however, a law was passed allowing other casinos to be set up. Today, then, gambling in Denmark encompasses all types of games. Gambling activities in Denmark are regulated by the Danish Gambling Authority (Spillemyndigheden), which is a subsidiary of the Danish Ministry of Taxation. These facilities operate under the Danish Gambling Act of 2016
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More information about Spillemyndigheden – the Danish Gambling Authority
Let’s break down each of the main aspects of the DGA license:
Although gambling activities are currently legal in Denmark, participants must be over 18 years of age. It is a criminal offense for anyone under the age limit to participate in any form of gambling.
Gambling products and activities are identified as defined in the Danish Gambling Act. The gambling products recognized under Danish regulations are:
- Poker & Card Games: According to the Danish Gambling Act this category encompasses all types of card games that are skill-based and played against other players.
- Betting: According to the law, betting is any activity that gives participants a chance to win prizes by placing an odds-based wager on sports or other events. These include betting on horses, any type of sports (like football), or other occasions like elections, etc.
- Casino Games: These are games of chance that include table games like roulette, baccarat, and others. Slots machines are also in this category. Casino games that require some skills like poker and blackjack are also included but only under the condition that they are played against the house and not against other players.
The Danish Gambling Act offers four types of gambling licenses for land-based operators. These licenses are issued and regulated by the Danish Gambling Authority. The four types of licenses are:
- A sports betting license that covers all types of betting and sports betting.
- A local betting license that includes cycling and horse racing.
- Land-based casino licenses for lotteries.
- Slot machine licensing.
The costs and validity period of the above-mentioned licenses vary depending on the license type.
Online gambling is legal in Denmark and is also subject to the Danish Gambling Authority under Danish law. There are three types of online gambling licenses.
- Online casino license
- Sports betting license
- Manager games license
An operator can obtain a combined license to operate both land and online gambling. The eligibility, duration, and cost of each license vary from one game product to another.
Gambling tax deductions are subject to the Danish Gambling Act 2016. Land-based casino operators have to pay 45% of their gross gambling income plus 30% of the values above 4 million DKK as tax. Similarly, operators of slot machines must pay 41% of their gross gaming revenue plus 30% of the amounts over 30,000 DKK plus a further 30% of amounts over 250,000 DKK. Online gambling operators typically pay 20% of total gambling revenues as tax.
Although there have been challenges in the Danish gambling market regulations, several reforms have been put in place to improve the industry. In this way, all gambling activities are now relatively efficient and safe.