Spillemyndigheden Warns Of Illegal Lottery Providers in the Country

Spillemyndigheden, the Danish gambling regulator, has issued a warning to the general public. This is regarding illegal providers in what inquiries revealed as ‘lottery subscriptions.’

Customers Contacted by Illegal Lottery Providers Offering Memberships

The Danish Gambling Authority has raised the alarm over increased illegal lottery providers. According to the regulator, unlicensed providers have been contacting customers offering them subscriptions. 

The warning comes after many complaints raised by the public. Investigations by the regulator revealed that these illegal providers contacted customers offering memberships to what the gambling watchdog called a “lottery subscription club.” The regulator revealed that the club allowed players to purchase tickets in multiple global lotteries and later split the winnings. 

In a statement issued by the regulator, Spillemyndigheden reminded customers in Denmark that it’s illegal for anyone to purchase or sell tickets from other sources apart from the Danske Lotteri Spil. According to the statement, the gambling watchdog clearly stated that Denmark is a monopoly when it comes to lottery ticket sales. 

Denmark Alters IT Equipment Regulations 

Early June saw the regulator alter its IT equipment regulations to allow equipment outside the country to offer online gaming. Before this change, only equipment from within Denmark received the license to offer online gaming services. 

EU regulations on free data sharing triggered the change in Danish rules. With this change, IT gaming equipment/systems owned by Danish license holders in other jurisdictions are eligible to offer gaming and betting services in Denmark. However, the Danish regulator must be able to perform inspections on the systems. 

Having said that, the licensee can skip inspection should the operator have a license to offer gaming services in a different jurisdiction. This is also if the regulator in that country has an understanding with Spillemyndigheden. 

Denmark Releases the 2020 Gaming Market Report: Channelization Increases

The regulator’s warning comes barely a week after it releases its 2020 Gaming Market report. According to the report, channelization in the country soared to its highest ever of 90%. Channelization is simply the number of players who used licensed operators for gambling entertainment. 

The figures from the report showed that the level of channelization jumped from 88% recorded in 2019. While this may be a marginal improvement, it’s a major jump from the 69% recorded when the gambling market in Denmark launched in 2012. 

The report placed Denmark in fifth position across Europe for channelization. The Czech Republic, Spain, Italy, and the UK ranked ahead of Denmark. 

Last year, the country posted its first slump in annual gambling revenue. This was the first time the gambling market in the country shrunk since its re-regulation in 2012. Strict measures including lockdowns and social distancing clawed back the steady climbing revenues. Revenue collected in 2020 was DKK6.00bn, which represented an 8.7% decline from the DKK6.57bn collected in 2019. 

Nerijus Grenda

Published: 10 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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