Rules and Regulations
Danish gambling laws have led to a structured licensing and regulatory system for online gambling operators in the jurisdiction. Gambling operators who wish to establish an online gambling site in Denmark must meet certain requirements to acquire and retain a gaming license. This includes having a physical office located in Denmark, as well as a reporting system that complies with all Danish tax laws.
In addition, licensees are not permitted to offer scratch cards, bingo, or drawing lots, as only Det Danske Klasselotteri and Danske Spil are able to offer these services. Danske Spil is also the sole operator that can offer horse betting, dog racing, pigeon racing, and other randomly generated betting events.
Licensing
In Denmark, casino operators can apply for licenses for various types of betting, including casino play, sports betting, and poker. These licenses are provided by the Danish Gambling Authority which bases an operator’s eligibility on certain criteria. For online operators, the DGA issues one type of license that covers all gaming operations, affiliates, eGaming service providers, eGaming software suppliers, and white-label operators.
To obtain a license from the DGA, applicants must undergo a detailed assessment to ensure that applicants are able to demonstrate appropriate integrity and financial standing. Before you can apply for an online gambling license in Denmark, an online casino must first incorporate their company in Denmark. These casinos must also provide a thorough description of games to be offered and obtain the necessary equipment for the transit server which transmits data to the jurisdiction for quality control.
Before a license from the DGA can be issued, applicants must also do the following based on rules and regulations defined in The Gambling Act:
- Applicants must submit an application and application fee.
- Applicants must submit to a financial review and background check.
- Applicants must setup a Danish bank account for player funds.
- Applicants must have the proper safeguards in place to prevent minors from playing and to protect against problem gambling.
- Applicants must ensure their website is registered with the Danish Business Authority and Danish Tax Authority.
- Applicants must have proper security measures in place to protect players’ personal and financial information.
- Applicants must go through the proper channels to ensure that their games are monitored and certified for fair gaming.
While the licensing process in Denmark is straightforward, the tax rates for online gambling sites is fairly high due to the small population of Denmark compared to other countries in Europe. Due to these high tax rates, fewer operators are choosing to offer online gaming services.
Player Protection
The Denmark Gambling Authority has put forth certain rules and regulations to ensure that players remain protected when using online gambling sites based in Denmark. As Denmark only permits online gambling on websites that are licensed in the country, players can stay protected from foreign operators that may provide illegitimate gaming services.
Concerns and complaints about online operators are taken seriously and the DGA has been known to take action against licensees when legitimate complaints have been made. However, as these online operators are also vetted well, this is rarely an issue. The Danish Gambling Authority reviews individual player complaints but only as a last resort. Players should first try to find resolution directly with the online gaming operator.
Other responsibilities of the DGA include setting policy and regulation, licensing and compliance, and coordination with the Danish Tax Authority.
Pros and Cons
Most players who play at online casinos that are licensed by the Danish Gambling Authority find the experience to be a safe, transparent, and all-around enjoyable experience. The DGA tends to be quite strict about who they award licenses. The Authority is also vigilant in carrying out investigations to root out rogue online operators and affiliates. There is also a great emphasis on player protection and safety.
There is not much to say negatively about the Denmark jurisdiction apart from their high taxes on operators. Due to these high taxes, many online operators are choosing to get licenses elsewhere.
Based in Odense, Denmark, the Danish Gambling Authority has built a solid reputation due to their stance on anti-money laundering, responsible gambling, and underage gambling. The DGA also has strict rules and regulations to ensure that licensees provide players with a safe and secure gaming experience. In short, players can play at online casinos licensed by the DGA without concern.
