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Channelization in Denmark Hits a Record of 90%

Spillemyndigheden, the Danish Gambling Authority, released the latest 2020 gaming market figures. According to the report, channelization in the country hit a record of 90% in this period. This is a record compared to the 88% recorded in 2019.

Licensed Gaming Channelization Hits a 90% Record

According to a Gaming Market report released by the Danish Gambling Authority, channelization in the country reached a record 90% in 2020. Channelization is simply the use of licensed and regulated operators to play online. 

The figures were an increase from those recorded in 2019, standing at 88%. While this is a slight increase, it’s a massive jump from when the market was first liberalized. This was in 2012 when the channelization was at 69%. From the report, Denmark comes in after Spain, the Czech Republic, Italy, and the UK in terms of channelization. 

The report included the gross gaming revenue (GGR) for all verticals available in the country. There was a 6.5% drop in 2020 to close at €1.23bn from the previous figures published by the regulator. However, the previous figures didn’t include lottery numbers. 

Channelization in Denmark Hits a Record of 90%

Lotteries and Online Casino Rake in the Highest Numbers, Sports Betting Losing Out

From the overall GGR reported, lotteries emerged top as the highest contributors in the industry, bringing in DKK3.20bn. However, this was a 0.1% decrease from the 2019 figures. 

Online casinos came in second, raking in DKK2.45bn, which was a slight jump from the DKK2.35bn recorded in 2019. On the other hand, sports betting was on the losing end, reporting an 8.9% drop to settle at DKK2.29bn. 

Slot machines also recorded a drop in the overall sum recorded at DKK986 million, which is a massive 29.3% drop. In the grand scheme of things, land-based casinos felt the effects of the COVID-19 pandemic, recording DKK239 million in revenue, a 31.7% decline. 

Gambling’s Contribution to Denmark’s GDP Remains Stable

The regulator’s report also included how gambling contributed to the country’s gross domestic product. This is a means of measuring how the gaming industry performs against the country’s economy in a broader perspective. 

According to the report, GGR gaming contributed 0.39% to Denmark’s GDP. This was a decline from 2019’s figures that stood at 0.42%. Nonetheless, the overall figure remained stable at 0.39% to 0.43% from 2012 when the market was liberalized. 

In the report, the regulator stated that the jurisdiction is home to 771 licensed operators offering gambling services. On the other hand, there are 360 non-profit lotteries that don’t need an operating license but still report to the regulator. 

The regulator had 325 slot machine permits and 375 for non-profit lotteries. This was in 2020 that also included 35 online casino permits as well as 3 that are revenue limited. Land-based casinos accounted for 9 permits while sports betting had 23 that included 4 that were revenue-restricted. 

Gaming Per Person Drops as Online Casino Market Share Grows

The weekly gaming per person amount dropped to DKK37.80 in 2020. In 2019, this figure stood at DKK40.62. On the other hand, online gaming’s market share grew to 59% in 2020 from 54% recorded in 2019. While this figure may have been on a steady increase since 2012 when it was at 31%, the closures occasioned by the ravaging COVID-19 pandemic contributed a huge deal. 

Mobile customers contributed 64% of the online revenue, an increase from the 60% recorded in 2019. Men of ages 26 to 35 were the biggest demographic that accounted for the total online gambling customers, standing at 23%. In general,  men accounted for 76% of online gaming accounts. Women held only 24% up from the 19% recorded in 2019. 

The report also showed that Denmark ranked seventh in Europe. This is in terms of the average spend per capita. In other words, this is the amount of money spent by an adult on gaming. This is DKK2,086 for an adult per year ranking behind Norway, Sweden, Iceland, and Finland. Ireland and Malta also ranked above Denmark. With that said, Denmark was on top of Italy, Cyprus, and the UK that made the top ten list. 

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Nerijus Grenda
Nerijus Grenda
Published: 01 Jul 2021
Updated: 13 Mar 2023
Nerijus Grenda is a prolific contributor to the GoodLuckMate site. With a deep understanding of the online casino industry, gained from his own experience as an avid player, he offers valuable insights on what sets the best casinos apart from the rest. As a writer, Nerijus shares his expertise through expert analysis and thoughtful commentary on various topics related to online gambling, including casino reviews, game guides and industry trends.

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