Online Gambling Industry in Denmark in 2019-2020: the Nuances of Starting a Business

Denmark is one of the richest countries in the world and one of the top ten most promising jurisdictions for foreign investors and entrepreneurs. Within the territory of the country, almost all types of commercial activities are allowed, including the gambling business.

Please find hereby some relevant analytical data, excerpts from the reports of the local regulator, a description of the main nuances of registering a gambling license in Europe, and useful information on the taxation system for the gambling sector.

The Gambling Sector in Denmark: the Reasons for its Rapid Growth

In Denmark, local and foreign investment in online gambling has gained widespread and has developed due to several factors.

Reasons for the stable growth of the gambling segment
Legal background	A well-thought-out and regulated control system for gambling establishments. On the territory of the jurisdiction, there is an appropriate authority — the gambling regulator Spillemyndigheden. It not only establishes the rules and the procedure for organising games for the money but also regularly publishes reports and summary information on the current situation in the gambling industry
Legal operation	Gambling business in Denmark is included in the list of officially legal work, and therefore, it comes under the rules of the European free trade zone The jurisdiction is considered to be a country with a smooth-running economy. The standard of living here is one of the highest in the world
Forms of business organisation	Foreign investors can deal with almost any type of the gambling business (we will talk about some of the restrictions a bit later)
Registration procedure	The country offers a simplified system for applying for the legalisation of the business remotely. If you have all the necessary documents, the application will be processed and granted within three-six months

The Economic Aspect of the Matter: Useful Statistics

Only a decade ago, the gambling industry in the country was completely monopolised. The situation changed only in 2010.

The largest local corporation, Danske Spil, has reserved the exclusive right to organise the following events:

• bingo draws;
• lotteries;
• scratch cards;
• betting on the results of dog and pigeon racings.

Foreign entrepreneurs can deal with the following operation modes:

• virtual casino business;
• acceptance of bets on sports events (both in the land-based segment and online business).

A Report on the Online Segment of the Gambling Market

The local regulator has opened access to the following data: in the second quarter of 2019, a 6.1% increase in revenues in the virtual sector was recorded. The gambling industry received a profit of about 256.1 million dollars.

As for the profit relationship of the main operation modes in the market, the situation is as follows:

1. Slot machines have brought their owners about 71.9% of the total income.
2. Roulette takes about 11.6% of the industry’s consolidated revenues.
3. Poker and blackjack have brought businessmen 8.6% of the total profit.

In the second considered half-year, the regulatory body has registered a certain bias towards mobile gambling. Personal gadgets are preferred by 50.27% of players.

Land-Based Locations

In the second quarter of this year, offline gambling has increased its turnover by 6.5%. Consolidated revenues of the industry are 98 million Danish kroner. Most of the profit came from the devices installed in special zones, and 29.6% was the revenue from slot machines that are located in public catering facilities.

The Sports Betting Segment

The gross margin of the industry for the current reporting period is 1.25 billion Danish kroner. The indicator is 3.6% higher than the figures for the reported data for the past quarter.

The Nuances of Legalising Gambling Projects in Denmark

Internet business and the offline market are tightly-controlled. According to the requirements of the local gambling regulator, applicants should have at least eight certificates issued by several independent commissions. At the same time, the country has a system of remote filing of applications and provides some exemptions from the tax authorities.

Requirements for the Licensees

To obtain a permit for organising casino games or sports betting operators should file the following documents:

1. A certificate that confirms that the interested person is of age (the licensee must be not less than twenty-one years old and be able to act without guardians).
2. Information on the absence of financial debts to the country and the presence of a clear record.
3. Confirmation of the fact that the person is a resident of the country; it is possible to hire a local authorised representative (cooperation with intermediaries (both legal entities and individuals) is allowed).
4. Information on the absence of bankruptcy proceedings.
5. Confirmation of the registration of an enterprise in Denmark or another country that is included in the European free trade area.
6. Notarised evidence of the fact that the applicant has financial support.

The Financial Aspect of the Matter

The Taxation System.

The taxation system is based on the collection of a fixed percentage of the gross income of the enterprise. Revenues are calculated according to the following scheme: the burnt bet minus the size of the paid prize.

The country has separate taxation criteria for different types of activity:

• Betting shops (land-based and online services) — 20% of gross income.
• Poker and stock exchanges — the state fee is based on commissions for assistance in the gambling process.
• Land-based casinos — “floating” tax of 45-75% of the revenues.

The Price Table for Casino Licensing.

Those foreign operators who file an application remotely are provided with the following tariffs:

• The procedure of filling an application to the local authority costs about 37 thousand euros.
• A request for the organisation of online games in a combined format — about 52 thousand euros.
• State duty and tax on the annual maintenance — the size of payments is calculated depending on the gross income of the enterprise.

Maintenance of a Permit.

The annual fee for maintaining the license is calculated according to the following pay scale:

• A service with a revenue of less than 5 million Danish kroner — a tax of 50 thousand kroner.
• A casino with an income of 5-10 million — a fee of 250 thousand.
• A website with a turnover of 10-25 million — 450 thousand Danish currency.
• Casinos with revenues of 25-50 million — deductions of 650 thousand.
• A company with an income of over 100 million — a tax of 1.5 million Danish kroner.

In Conclusion

Denmark is one of the most popular jurisdictions for launching gambling websites. The country attracts not only with its economic stability but also with more than loyal conditions for working both in the local and European markets.

The main thing that you need to keep in mind is that it is necessary to follow the established standards and meet the requirements of the local regulator. Our advice is to contact qualified specialists and get the most detailed information on all the nuances of casino licensing in Denmark.

We do not recommend you to legalise a gambling startup on your own if you do not know the nuances of the gambling legislation. Cooperation with Win Win Casino is the best way to avoid pitfalls and effect the desired result in a very short time.

Our team will tell you how to launch a gambling project in Europe and work in the international market with minimal risks and investments.

Leave an application to our managers and become part of the largest financial market of our time right now:

• e-mail: manager@win-win-casino.com
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