Danish Gambling Authority

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Last Updated on 08/08/2022

Last Updated on 08/08/2022

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Last Updated on 08/08/2022

Introduction to the Danish Gambling Authority

Spillemyndigheden Danish Casino LicenseIf you are playing under Danish Gambling Authority, you know you are in good hands. It is a gambling authority that seems to have established a balance between wealth generation, monetization, and player autonomy.

In this article, you will get to know everything about the Danish Gambling Authority. 

The History of the Danish Gambling Authority

The Danish Gambling Authority had been formed by the Danish Ministry of Taxation as already mentioned. In the first 10 years of its existence, its main task had been to control the gaming machines, which had been placed in restaurants, gambling dens, and kiosks.

They supervised the 7 land-based casinos in Danske Spil and Denmark that had complete monopoly on the supply of lottery and betting. Simultaneously, they issued licenses to the bingos and charity lotteries. It was from 2012, it began changing to a great extent when the present Act on Gambling had become efficacious.

Now, whenever someone applies and secures a license, they will be able to offer gambling in Denmark. As a result, the Danish Gambling Authority turned out to be an independent authority that had a director of its own since 2013. 

What Are the Gambling Regulations of the Danish Gambling Authority?

The Danish Gambling Authority was formed by the Danish Ministry of Taxation for overseeing the land-based casinos in Denmark in 2000. Apart from the brick-and-mortar casinos, the authorities oversaw Danske Spil, which was the only betting and Lottery Company in the country.

But in 2013, the Danish Gambling Authority became independent and now has its own Director. It has more than 100 staff across Jutland, Odense, and Copenhagen. Today, the Danish Gambling Authority grants licenses to online casino operators, as well as online betting operators. The online license that they provide to the casinos includes mobile and online access to blackjack, roulette, punto banco, baccarat, gaming machines, poker, and gambling.

Moreover, it includes other games, too that have an element of chance and skill, such as whist, backgammon, and guessing games.  There is a list of casinos that have been approved by the Danish Gambling Authority and this list is available to anyone who wants to check if a potential online casino is legitimate before registering

What Does the Danish Gambling Authority Licensing Include?

If a site has to secure an online license from the Danish Gambling Authority, they have to perform a thorough application and betting process for the individuals involved and the business. You will have to pay an application fee of €38,000. Nevertheless, this fee you pay is non-refundable if a casino or dual betting license is applied for.

The Danish Gambling Authority has laid down clearly defined parameters on what is gambling but they also allow non-licensed gambling activities to be experienced but under specific conditions. The given-below forms of gambling and gaming enjoy direct exemptions:

  • Bank premium bond accounts.
  • Land-based tournament backgammon.
  • Betting on the financial asset value in the future.
  • Premium bonds.
  • Gambling for a negligible amount of money in personal homes.

Moreover, they consider a game to be license worthy when it contains a financial stake and pays out a prize having financial value, and is a game based on chance rather than on skill. It means that the following game types can be offered without requiring a gambling license.

  • Gambling with a wager but without the chance of securing a winning prize.
  • Gambling without a bet where there is an opportunity to win a prize.
  • Gambling has a prize and stake but there is no element of chance, such as quizzes, chess, sporting events, the bridge with duplicated cards, and others.

It is a mature approach that the Danish Gambling Authority has taken to gambling to manage and secure revenue from the actual gambling activities without placing undue restrictions or pressure on the fun or casual play events that are used for non-profits for raising awareness or funds for a cause. 

Taxes

As soon as an operator secures a gambling or online betting license, the Danish Gambling Authority fee structure is applicable. However, it is fairly simple. The online casino operators will also have to pay an annual license fee that ranges from €8000 to almost €700,000 on the basis of the class of license held by the casino.

Also, the operator is going to owe the authority 20% of the monthly Gross Gaming Revenue. Nevertheless, negatives in a single month might not be offset against positive revenues in the other.  The fees are more agreeable than a 41% GGR that is paid by the land-based casinos licensed in Denmark.

When it comes to poker and other games where the gambling operator takes a commission, the fee is about 20% of the commission that is being charged and calculated annually. 

What Are the Benefits of the Danish Gambling Authority for the Operator?

The main benefit of a prospective casino operator is that operators will get legal access to the market. Every year, the online casino market is seeing a growth of 18%. The analysts have also seen that 61% of the revenue is generated from the slot itself. With the Danish Gambling Authority Approval, operators can advertise offline and online publications, legally. Also, operators get to enjoy above-the-line opportunities that present themselves.

In Denmark, online sports betting has been seeing growth and development in the last few years. So, it can be taken to be the second most powerful gambling genre in the region. 

What Are the Benefits of the Danish Gambling Authority for the Players?

So, if you join an online casino that has the complete backing of the Danish Gambling Authority, you will have complete peace of mind that if there is any dispute, you are going to get access to legal resources in your country.

The Danish Gambling Authority has enforced the processing of financial transactions through various regional financial instruments. This means that there are no problems with currency conversions and hidden fees.

Moreover, the authority requires that all online casino promotions and bonuses are marketed in a lucid and clear manner and should have immediate content to provide. It means that the offer that you see is the offer you get. There will be no hidden details or clauses tricking you to lose money. Hence, you will be able to enjoy the casino to your fullest.

The Danish Gambling Authority is also running ROFUS. It is actually a voluntary exclusion list promising to be completely confidential and private. Nevertheless, if your name makes it to the list, you will not be removed, ever. So, you are going to be banned from every land-based and online casino for life. This is the reason you need to be careful. 

What Are the Danish Gambling Authority New License Fee Structure Problems?

The Danish Gambling Authority has introduced a new license fee structure. According to this, the annual payment cost is stipulated by the GCR of every casino. This new framework has been made effective from 1st July. It is going to replace the old fee structure. In accordance with this new fee structure, the casinos of Denmark have recompensed the regulators of the state for cost-related operational supervision. But the former legislation required a Danish Gambling Authority officer to be present at all times throughout the opening hours of the casino.

Nevertheless, the government of Denmark amended the Executive Order on brick-and-mortar casinos in early 2021 and wanted to eliminate the supervisory process. Under the new regime, the Danish casinos are going to pay a prepaid amount for 2016 on the basis of 2015’s gaming performance. The fee is going to be adjusted in January 2017 and is going to be based on the haul of 2016.

There are 7 land-based casinos in Denmark and are located across the country in the cities, such as Aarhus, Copenhagen, Helsingor, Odense, Vejle, and Aalborg with added floating property on board a ferry service between Oslo and Copenhagen.

Why Do Gambling Operators Need to Apply for a License?

Online gambling keeps growing across the world, but experts believe that if an online casino operates in a jurisdiction that doesn’t have proper regulatory requirements, it has an effect on credibility and activities. With a valid license, it can accept players and their payments. The licensees can operate legally within the Danish Gambling Authority.

The gaming sales projections look pretty promising. More and more people are using mobile devices. This has also increased the number of people searching for online casinos. The primary thing that has to be considered before this happens is licensing.

If you have gambled before, you will know that the world of online gambling is highly regulated because of the many risks. These risks include money laundering and fraud. However, several jurisdictions have been able to strike a proper balance between pushing the industry and also keeping the gamblers and themselves safe.

Governments across the world including the Danish Gambling Authority have begun updating, amending, and introducing new legislation for regulating the industry. When it comes to the long-term, the chances are good since an annual growth of 40% has been anticipated, balances, and checks have to be in place. 

Different Rules in Different Jurisdiction

When it comes to online gambling, there are two regulatory approaches, the ones that regulate and the ones that do not. A few have come up with a national framework that can better the industry while making sure that the ethics are being taken care of. 

Many countries don’t regulate that sector. It means operators can operate without a license, legally. Nevertheless, these companies are not going to be functional since the software providers and the payment process are not going to serve a casino that is not licensed, unsupervised, or unregulated. Thus, it can get very difficult for them to operate and function in the gambling industry.

Who Needs to get a Danish Gambling Authority License?

In a majority of the cases, operating without a license implies your site is operating illegally. Hence, it is going to leave you open to prosecution. Your business runs the risk of being shut down by the government authorities of the country. Thus, it is always better to make sure that your business is operating legally in the betting and gambling market.

Here are some of the reasons your gambling business should be licensed.

  • A license is going to give you the chance to operate legally in Denmark without any restrictions. 
  • If you are licensed you might be able to benefit from zero tax in offshore countries. 
  • When you have a license, it makes your site credible, and thus, your players are going to trust you. 
  • The customers will get to know that you are reputable and if there is a dispute or complaint, there is a resolution system to bring them justice. 
  • In order to accept payments from the players through credit cards or some other popular payment, a valid license is needed. 
  • For working with popular hardware and software providers, you need to showcase the license as evidence that your business is legal.

Catering to the requirements of the license is just half of the job. You need to make sure that you are compliant through effective self-regulation means. The zero-tolerance policy, ethics, and responsible gaming to underage gambling have to be the center of your ethos. However, make sure that you do not let things slip when you get the license in hand.

Getting the Denmark Gambling Authority Spillemyndigheden License

Opening an online gambling business in Denmark might take a lot of effort, time, and money. In case licensing is a step you skip; it can hamper your business in the future. You need to consider getting a license to operate in Denmark. If you want, you can take the advice of a professional to ascertain that it is a suitable jurisdiction for the financial, business, and fiscal requirements too.

There are several things to be ticked off the list when you look to open your own online casino or betting business.

Danish Casino License FAQ

The Danish Casino License is granted by the government of Denmark top operators of online casinos that want to offer games to the Danish population.

Spillemyndigheden is the Danish name for Gambling Authority.

Without the Danish Casino License, operators are illegally providing games to the Danish population. They may get penalized for this.

Operating running casinos under the Danish law are completely legal. They can take advantage of the growing Danish iGaming market.

Players are protected. The Danish Spillemyndigheden (casino license) makes online gambling safer and fairer for Danish players.