The primary legislation regulating gambling activities in Denmark is the Danish Act on Gambling (the “Gambling Act”). The Gambling Act is supplemented by a series of specific executive orders, for further discussion of which please refer to 3.1 Key Legislation.

Further, the Danish gambling industry is guided by a code of conduct agreed upon by all players in the industry, which is intended to supplement the existing legislation and regulation.

Betting

Betting such as sports and horse race betting is permitted in Denmark subject to specific licence requirements. The same applies to fantasy betting (payment to back a “league” or “portfolio” selection over a period of time; for example, in relation to sport or shares).

Bingo, Casino, and Poker

Online bingo, casino, and poker is permitted in Denmark upon specific licence requirements.

Lottery

The Danish gambling market is only partly liberalised, and thus the provision of lotteries is kept under a monopoly. The provision thereof is thus reserved for the Danish state-owned entity Danske Spil. Therefore, it is not possible for anyone else to obtain a licence to provide lotteries. However, it is possible to obtain a licence for non-profit lotteries.

Social/Skill Arrangements

Social games that are provided for free (that is, where no stake or payment is needed to participate) can be provided without a licence.

“Skill games” with no element of chance are permitted under Danish law and can be provided without a licence.

All of the games mentioned in 2.1 Online are also permitted as land-based games conditional upon a licence. Please be aware that special conditions apply for bingo and charity lotteries. With regard to physical gaming machines, these are also permitted in Denmark, although they need to fulfil certain technical requirements as well as be licensed.

The primary legislation for gambling activities in Denmark is the Gambling Act supplemented by a series of specific executive orders:

• Executive Order No 727 of 9 June 2017 on partial exemption from the Anti-Money Laundering Act for certain games (as amended by Executive Order No 1285 of 27 November 2017);
• Executive Order No 72 of 29 January 2018 on the special contribution to the sport of horse racing;
• Executive Order No 1274 of 29 November 2019 on online casinos (as amended by Executive Order No 1010 of 25 May 2021, Executive Order No 19 of 10 January 2022 and Executive Order No 720 of 24 May 2022);
• Executive Order No 1276 of 29 November 2019 on online betting (as amended with Executive Order No 1009 of 25 May 2021 and Executive Order No 721 of 24 May 2022);
• Executive Order No 1288 of 29 November 2019 on non-profit lotteries;
• Executive Order No 1289 of 29 November 2019 on gaming machines in arcades and restaurants;
• Executive Order No 1290 of 29 November 2019 on land-based casinos;
• Executive Order No 657 of 26 May 2023 on reporting etc, to the Money Laundering Secretariat;
• Executive Order No 658 of 30 May 2023 on notification and publication of information about domestic politically exposed persons (PEPs);
• Executive Order No 873 of 21 June 2023 on duty payment to the Gaming Authority; and
• Executive Order No 1140 of 28 August 2023 on land-based betting

Licensed games in Denmark shall also have their games certified in accordance with the certification programme of the Danish Gaming Authority (DGA). A new and updated certification programme for online betting, land-based betting and online casinos was implemented in 2023.

The provision of gambling in Denmark is subject to the Anti-Money Laundering Act (the “AML Act”) and general rules on marketing in the Danish Marketing Practices Act, which supplement the marketing provisions in the Gambling Act. Furthermore, financial regulation is relevant in relation to the supply of payment services, e-money, etc, as well as regulation on consumer protection in relation to information requirements towards players, which can be applicable. Additionally, there are rules on the players’ right to withdraw from a transaction. Finally, licensed games are subject to the Danish Gambling Duties Act.

All of the relevant products are permitted according to Danish Law, conditional upon specific requirements. However, please note that commercial lotteries are a monopoly.

The Danish Gambling Act applies to all games offered to the Danish market. A “game” is defined as any activity that falls within one of the following categories:

• lotteries, where the chance of winning is solely based on chance;
• combination games, where the chance of winning is based on a combination of chance and skill; and
• betting (ie, where the chance of winning is dependent on the outcome of an event).

The Danish Gambling Act applies both to games that are and those that are not subject to the payment of a stake to participate, although the Gambling Act only requires a licence for games subject to payment of a stake to participate.

Activities where the betting is not concerned with the result of an event or games where there is no element of chance, such as participation in sports events or competitions based on knowledge (with no drawing of lots), do not fall within the Danish Gambling Act.

The Gambling Act defines land-based gambling as gambling that is entered into by a player and a gaming supplier, or the supplier’s agent, meeting physically. Land-based games are, for example, games that are provided in shops or in physical casinos.

The Gambling Act defines online gambling as gambling that is entered into by a player and a gambling operator using remote communication. Remote communication means communication without the player and the gambling operator meeting physically; for example, through the internet, telephone, radio, mobile phone, or email.

All violations of the Gambling Act may result in penalties as stated in 3.6 Penalties for Unlawful Gambling.

Key offences that can be committed are:

• violations of the marketing provisions in the Gambling Act;
• providing games without a licence;
• violation of the terms and conditions of the licence; and
• violation of the AML Act and the regulations concerning know your customer requirements.

The sanctions for breaching the Danish gambling legislation/regulations range from a warning to up to two years in prison, dependent on the specific offence. The most common sanctions are a warning and an order to correct the offence. The DGA does not have the power to issue fines and thus it is obliged to hand over the matter to the Danish police with the recommendation that the police issue a penalty notice. The violator can choose to accept this notice or try the matter in court. However, please note 3.7 Recent or Forthcoming Legislative Changes.

The DGA can also choose to revoke the gambling operator’s licence if there is a serious breach of the Danish Gambling Act.

In relation to online gambling operators that direct their provision of gambling to the Danish market without possessing a valid licence, the DGA will request the Bailiff’s Court to issue an ISP block of the relevant website.

The Danish government’s official programme for scheduled amendments to Danish legislation in the coming parliamentary year 2023/2024, which was launched 4 October 2023, includes amendments to the Danish Gambling Act.

The amendments will, according to the non-exhaustive list of items mentioned in the official programme, cover prevention of match-fixing, and an extension of the DGA’s powers to issue orders and reprimands. According to the information available to the author it is also expected that the amendments will introduce B2B licences for game providers. However, since the draft bill has yet to be presented and negotiated, the exact scope and content of the bill is still subject to change.

The draft bill with the amendments to the Danish Gambling Act is scheduled for public hearing later this autumn. It is anticipated that the bill with amendments – after being processed in the Danish parliament and notified to the EU – will have effect as of 1 July 2024 and 1 January 2025 for B2B licences.

The Danish gambling market is supervised by the DGA, the Danish Ministry of Taxation and the Danish Consumer Ombudsman. As regards licensing, it is the DGA that issues the licence to provide gambling.

The Danish gambling market is intensively regulated and watched over by the DGA, which knows all stakeholders. At the same time, the DGA is open for dialogue.

There are no relevant changes expected to the licensing and regulatory framework.

The provision of a game requires a licence from the DGA if the game (i) is offered to the Danish market, (ii) is subject to the payment of a stake to participate, and (iii) falls within one of the following categories: (a) lotteries, (b) combination games, or (c) betting.

As social/skill arrangements do not normally meet the above criteria, such games generally do not require a licence.

Examples of games that can be provided without a licence include:

• games with a stake, but without the opportunity of winnings;
• games without a stake, but with the opportunity of winnings; and
• games with a stake and winnings, where there is no element of chance, such as chess, quizzes, bridge with duplicate cards, sports events and certain types of computer games.

Danish gambling licences can be divided into two main categories: online gambling licences and land-based gambling licences.

Online Gambling Licences

There are two types of online gambling licence available in Denmark: a betting licence and an online casino licence. The online casino licence includes roulette, poker, blackjack, baccarat, punto banco, online bingo, gambling on gaming machines and combination games. The betting licence includes all games where players attempt to predict the result of an event, including sports events and horse racing.

Furthermore, it is possible to apply for a revenue-restricted licence to provide online casino or online betting, according to which the gross gaming revenues (GGR) cannot exceed DKK1 million.

It is also possible to apply for a turnover-restricted manager game licence, according to which the turnover cannot exceed DKK5 million and the repayment percentage (percentage return) cannot exceed 20%.

Land-Based Gambling Licences

As for land-based gambling, there are two main types of land-based licence available in Denmark: a casino licence and a limited licence covering only gaming machines. The betting licence described above covers both the provision of land-based and online betting.

Other Relevant Information

There are no limits on the number of licences to provide online gambling, or on having gaming machines in arcades or restaurants. There is a restriction on the number of land-based casino licences that may be issued.

It is not possible to obtain key personnel or subcontractor licences, and subcontractors are generally not obliged to obtain their own licence – on the condition that they only act as suppliers to the gambling operator. However, this is based on a specific assessment of the obligations between the parties.

All licences for online gambling are readily available as long as the requirements in 4.7 Application Requirements are met and the fees are paid. However, licences for land-based casinos are only available when one of the current licences becomes available or if the DGA opens for new applications.

The different licences are issued for different periods of time: the “revenue-restricted” licence to provide online gambling is limited to one year, whereas a normal licence to provide online gambling (betting and/or online casino) can be issued for up to five years. It is possible to apply for renewal before expiry of the licence. This process is similar to, but less comprehensive than, the regular application process described under 4.7 Application Requirements.

The land-based casino licence is issued for a period of up to ten years, while the limited land-based gaming machine licence is issued on an individual basis and may be granted for an unlimited period of time.

As mentioned in 4.4 Types of Licences, Danish gambling licences can be divided into two main categories: online gambling licences and land-based gambling licences.

Online Gambling

An application for a gambling licence is subject to a fee (see 4.9 Application Fees).

Any person wishing to provide online gambling to the Danish market must:

• be at least 21 years old;
• not have a legal guardian;
• not be subject to insolvency proceedings;
• not have been convicted of criminal offences that render it probable that the person will abuse their access to gambling; and
• not have any debt to public authorities.

If the person does not live in Denmark or in another EU/EEA country, the person must have appointed a representative living in Denmark or, if the appointed representative is a legal entity, be established in Denmark.

Any company that wishes to provide online gambling to the Danish market must be established within the EU/EEA or have an appointed representative in Denmark.

Furthermore, the members of the board and the directors must meet the requirements for physical persons mentioned above.

When appointing a representative, the representative must be approved by the DGA and, in order to obtain this approval, the representative must meet requirements similar to those imposed on physical persons mentioned above.

If these minimum requirements are met, the applicant must further prove that it will be able to provide online gambling in a sound financial and professional manner.

The assessment is made by the DGA based on a large number of financial and technical documents, which the applicant is required to submit. The requirements for a revenue-restricted licence are less comprehensive.

The DGA may either choose to grant a full licence, grant a conditional licence or reject the application. Applicants failing to submit sufficient documentation or failing to live up to the requirements set forth by the DGA will normally be given a chance to take remedial action by providing the missing information before the application is rejected.

The DGA will consider the overall picture, and if it finds that the necessary requirements are met, it will issue a licence. From the handing in of an application to the DGA, the issuing of a licence will normally take between three and six months.

As a rule, there is no refund of the application fee, which will be forfeited if the application is rejected. If the applicant applies again, a new fee must be paid.

Land-Based Gambling

The process when applying for a land-based casino licence and a licence to set up gaming machines is similar to the one described above and supplemented by the executive orders on land-based casinos and gaming machines in arcades and restaurants. Accordingly, there are, for example, requirements for persons working within a land-based casino.

At the time of writing (October 2023), there are seven land-based casino licences. For now, it is not possible to apply for new land-based casino licences. It is only possible to apply for a licence when one of the current licences becomes available or if the DGA opens for new applications.

As stated in 4.7 Application Requirements, it normally takes between three and six months from the handing in of an application to the DGA issuing a licence.       

The application fee is DKK304,500 for a betting licence or an online casino licence (2023 level); however, if the party applies for a combined betting and online casino licence, the fee is DKK426,300 (2023 level).

For applicants with an annual GGR of less than DKK1 million, a “revenue-restricted” licence may be issued, and the fee is DKK60,900 per licence (2023 level).

Online gambling operators have to pay an annual fee for holding the licence. The fee is based on their GGR. Additionally, the licence holders have to pay gambling duty based on their GGR (see 12.1 Tax Rate by Sector).

Applying for a licence to set up gaming machines is subject to an annual fee of DKK698 (2023 level) per gaming machine.

It is possible to apply for a licence to set up gambling machines in premises (restaurationer) with an alcohol licence or in gambling arcades.

In principle it is only possible to give permission to set up a maximum of three gambling machines in premises (restaurationer) with an alcohol licence.

In gambling arcades, no other games or business activity other than gambling machines may occur. It is only permitted to sell sweets, snacks and drinks on a limited scale, and it is prohibited to sell hard liquor (liquor with alcohol of 2.8% volume or more). Please note that certain requirements apply to gambling arcades.

There have been no relevant changes recently.

Online gambling operators contracting with players directly, either through their own website or through a white-label site, must hold an online gambling licence to provide gambling in Denmark. In general, a white-label site is defined as a site that markets games that are provided under a different party’s licence to provide gambling, making it appear as if the white-label site operates the game. This will allow the producer/product owner to sell its gambling product several times in a way that makes it look like a unique brand every time. The producer/product owner must be a licence holder. There are specific regulations on the use of white label sites.

Online operators that do not contract directly with players, but only provide services to gambling operators, are not required to hold a licence. However, please note 6.5 Recent or Forthcoming Changes.

Gambling operators are permitted to use affiliates, which in the Danish gambling market is often seen in relation to advertisement of the gambling operator’s website or games.

The Danish regulation on consumer protection and marketing and the provision regarding marketing and advertisement in the Gambling Act also apply for affiliates.

As noted, it is possible for gambling operators that hold a Danish gambling licence to obtain permission to offer white-label agreements.

Please note that regardless of the use of white labels, the gambling operator is always responsible for complying with the gambling law and the terms stipulated in the licence.

According to the information available to the author, it is expected that the proposed amendments to the Danish Gambling Act, will among others introduce B2B licences for game providers, see 3.7 Recent or Forthcoming Legislative Changes for further information.

The DGA has the legal grounds in the Gambling Act to ask the Bailiff’s Court to issue an ISP block of an unlicensed website (see 11.2 Sanctions for an elaboration of this).

The DGA also has the legal grounds to ask the Bailiff’s Court to order payment service providers to block payments to unlicensed operators.

The purpose of the Gambling Act is:

• to maintain the consumption of gambling services at a moderate level;
• to protect young people and other vulnerable people from being exploited through gambling or developing a gambling addiction;
• to protect players by ensuring that gambling is provided in a fair, responsible and transparent manner; and
• to ensure public order and to prevent gambling as a means to support crime.

This results in several obligations being imposed on Danish licence holders, and especially on holders of a Danish licence to provide online gambling.

MitID

Before participating in online gambling, the player must be registered with the gambling operator. The registration process involves providing the online gambling operator with extensive information, including personal information. In 2022 a new eID (“MitID”) was introduced. Players are required to use MitID in a range of situations related to accessing and participating in online gambling.

Betting on Sports Events for Adolescents

Offering betting on sports events to those under the age of 18 is not permitted.

Preventing Compulsive Gambling

Additional operator requirements include the obligation for online gambling operators to monitor the players’ consumption of gambling, providing the players with the possibility of “cooling-off periods” and providing access to a state-controlled Register of Voluntarily Excluded Players (ROFUS), as well as having their gambling system set up so that every time a player attempts to log in, the system automatically checks whether the player has registered themselves with ROFUS, and if this is the case, the system denies them access to their account.

Players are required to fix a daily, weekly or monthly deposit limit for their game before beginning the game. There is an attention duty imposed upon the online gambling operator in relation to abnormal gaming patterns that indicate gambling problems with the players. Furthermore, all players listed in ROFUS decline to receive marketing material from a gambling operator during the exclusion period.

The gambling operator must therefore consult ROFUS to check whether the player is listed therein before sending marketing material to the player.

To take part in land-based betting, players are required to register for a “Player ID” (Spilkort) before betting in kiosks or betting shops. It is therefore no longer possible to take part in land-based betting anonymously. The intention is thereby to strengthen efforts against match-fixing, money laundering and gambling addiction. Furthermore, the introduction of the “Player ID” is intended to aid in upholding the age limit of 18 years to participate in betting.

Furthermore, the requirement that players must now identify themselves with a “Player ID” before betting makes it possible to enforce registrations in the Register of Voluntarily Excluded Players (ROFUS) in physical shops.

The gambling industry is guided by a code of conduct. The purpose of the code of conduct is to increase consumer protection and contribute to preventing gambling as entertainment developing into compulsive gambling.

There are no relevant changes expected.

Gambling management tools include the following:

• Making information readily available to customers on how to gamble responsibly, how to access information about responsible gambling, how to recognise problems with gambling and how to seek help in this regard.
• A mandatory self-imposed deposit limit that can only be increased after a 24-hour waiting period.
• Problematic gambling behaviour and gambling addiction prevention procedures (the licence holder must have drafted written internal rules and procedures for responsible gambling in order to prevent the development of gambling addiction among the players).
• A register for temporarily or permanently self-excluded players.
1. The players may temporarily exclude themselves from gaming for not less than 30 days; however, a player shall have the opportunity to choose a 24-hour break from gaming (cooling-off period).
2. The players may exclude themselves permanently from gaming (meaning that they cannot re-register until one year after the commencement of the exclusion); in the case of permanent exclusion, the licence holder shall inform the player about the option for counselling and treatment of pathological gambling at a Danish treatment centre.
3. Both when registering new players and when the players log into the gaming system, the licence holder must consult the registry to ensure that the player in question is not registered; if a player is in the register, the licence holder must reject the registration of the player, or terminate the customer relationship.
4. The licence holder must inform the players about the possibility of registration with ROFUS on the DGA’s website.

The provision of gambling in Denmark is subject to the AML Act, which has implemented the EU’s AML directives, most recently the Fifth Directive.

The Danish Financial Supervisory Authority has published guidance on the Danish AML Act that was last updated in 2022.

There are no relevant changes expected.

Danish licence holders may only receive payments into a gambling account from a payment services provider that provides these services legally in Denmark pursuant to the Danish Payment Services Act.

According to this act, payment services may only be provided in Denmark by certain types of providers that have been granted authorisation in Denmark, in the European Union or in a country with which the European Union has entered into an agreement for the financial area.

If the service provider does not hold a Danish authorisation, it cannot begin its operation in Denmark before it has obtained a cross-border authorisation; see the Danish Financial Business Act.

The authorisation is granted when the Danish Financial Supervisory Authority has received notification from the supervisory authorities in the service provider’s home country.

Furthermore, gambling operators are not allowed to provide credit facilities to the players.

EU AML Directives

The Fourth AML Directive was implemented as of 26 June 2017 via the new Danish AML Act. This had the effect that the AML regulation now covers both online and offline casinos and betting; thus, as of 26 June 2017, all gambling operators are required to identify and assess the risk of money laundering and financing of terrorism within their business on the basis of their business model. With regard to that risk assessment, they are required to have sufficient written policies, procedures and controls that can effectively limit the risk of money laundering and financing of terrorism. Additionally, gambling operators are required to commence customer due diligence with their customers. In certain situations, customer due diligence may require enhancement, while in other situations a simplified due diligence is sufficient. The AML Act is very comprehensive and the above is not exhaustive. The DGA has published a guideline that should be seen as a supplement to the general guideline from the FSA.

Gambling operators are also obliged to inform the Danish Money Laundering Secretariat of any suspicious transactions.

The Fifth AML Directive was implemented as of 2 May 2019 via the Danish AML Act. The main part of the Act came into effect as of 10 January 2020, where suppliers of exchange services for virtual currencies and fiat currencies and suppliers of virtual wallets will be covered by the Danish AML Act.

Virtual Currencies

There is no specific regulation concerning gambling with virtual currencies and, thus, the Gambling Act will apply if such activity can be characterised as “gambling” pursuant to Section 5(1)(i) of the Gambling Act, the most central condition being whether there is a chance of winning a prize.

Only regulated currencies are covered by the Danish Payment Services Act, which means that unregulated currencies such as bitcoin will not be accepted as a means of payment.

The DGA monitors the gambling market and the DGA will also monitor the licence holders’ compliance with marketing provisions. Please note that if infringement of such marketing provisions will result in fines or imprisonment, the case will be handed over to the Danish police (see 11. Enforcement).

Please note that games that are regulated by Danish regulation on marketing and consumer protection are also the responsibility of the Danish Consumer Ombudsman.

A Gambling Advertisement Board was established in 2022. The board has the authority to handle complaints made regarding the advertisement of gambling in Denmark. All verdicts are published on their website.

Neither the Gambling Act nor the Danish Marketing Practices Act defines advertising. It may be defined as a businessperson’s or company’s commercial communication to a consumer that is directly related to promotion, sale, or supply of a product.

The provision of gambling in Denmark is subject to general rules on marketing in the Danish Marketing Practices Act, which supplements the marketing provisions in the Gambling Act.

The marketing and advertisement of bonuses (for example, a sign-up bonus) is regulated by the executive orders on the provision of both land-based and online betting, and on the provision of online casinos.

According to the Danish Gambling Act, all marketing of gambling must:

• present the odds of winning in a correct and balanced way so that it the impression is not given that the chance of winning is greater than it actually is;
• present gambling as entertainment;
• not be targeted at children or persons under 18 in relation to the design of the communication or the choice of media used;
• not use well-known persons to suggest, contrary to the truth, that participation in gambling has contributed to the person’s success; and
• not have any content that gives the impression that participation in gambling offers a solution to financial problems or gives the player social acceptance.

When marketing a bonus offer, all conditions must be disclosed in a clear and unambiguous manner within the immediate context of the bonus offer. However, depending on the media type, a referral to another medium for additional information concerning the offer can generally be accepted in the form of “one click away”. Bonuses may not be offered to single players on conditions that differ from the conditions offered to other players. The player shall have at least 60 days to meet any conditions associated with the payment of a bonus.

It is a requirement under the Danish regulation that the website (and all communication with the players) is available in Danish and the gambling duty is calculated and payable in Danish kroner. However, the website can also be available in other languages and use other currencies.

There is certain information that the gambling operators must state in marketing material. Information such as the age limit for participating in the game, the DGA’s hotline concerning responsible gaming and the possibility of listing in the state-controlled ROFUS shall be stated when marketing games. The gambling operator must also use the DGA’s labelling scheme in the marketing material.

In addition, limits are set for deposits on gaming accounts or stakes in games to obtain promotional measures and limit the amount of promotional measures. There is also a limit on the number of rewagering requirements. Winnings from promotional measures may not be subject to rewagering requirements. Furthermore, promotional measures must be granted on the same terms when given to individual players and they must be given to all players playing within the same fixed interval or who meet another set criterion.

The interval must be fixed so that the promotional measure is offered to a minimum of 100 players.

Furthermore, consumer loans companies are prohibited from marketing consumer loans and consumer lending businesses in conjunction with advertisements for gambling and gambling operators. It is important to note that the companies to be charged are the consumer loans companies and the companies that provide consumers with credit facilities in connection with gambling and gambling operators. The gambling operators themselves are not directly subject to these provisions.

Violations of advertising regulations in the Gambling Act may be sanctioned with fines.

There are still ongoing discussions regarding further restrictions on marketing, including a prohibition on the advertisement of gambling before and after broadcast sports events. Further, a ban on the use of well-known people in commercials for gambling is being considered.

A Danish gambling licence cannot be transferred.

In the event of corporate restructuring – such as a merger, demerger or an exchange of shares – the DGA must be notified in advance in order to obtain prior approval. It is not possible to transfer (delegate) a licence or the rights and obligations that follow with the licence.

It should be noted that the DGA has expressed indeterminacy on this topic, which is why the matter of acquisitions and changes of control of a gambling licence is not certain at this time.

A change of corporate control occurs when a person or legal entity crosses the threshold of owning 10% of the shares or the voting rights in the company holding the licence.

Similar requirements apply as in 10.2 Change of Corporate Control Triggers, as there are no exemptions for passive investors.

The DGA monitors the gambling market and can at any time open a procedure for revocation of a licence if it finds that the licence holder can no longer supply games in a sound financial and professional manner. The DGA also has the legal grounds in the Gambling Act to ask the Bailiff’s Court to issue an ISP block of an unlicensed website.

The DGA currently has no jurisdiction to issue fines for violation of the Danish Gambling Act. Consequently, today even minor violations of the Act carry the risk of being investigated by the police in response to a report from the DGA. Amendments to the Danish Gambling act extending the DGA’s powers to issue orders and reprimands are expected in 2024; however, the exact scope and content of the amendments are still unknown (see 3.7 Recent or Forthcoming Legislative Changes).

The sanctions for breaching the Danish gambling legislation/regulations range from a warning to up to two years in prison, depending on the specific offence. Such cases will be monitored by the Danish police (see 11.4 Personal Sanctions).

In relation to gambling operators that direct their provision of gambling to the Danish market without a valid licence, the DGA will request the Bailiff’s Court to issue an ISP block of the website. The DGA has used this sanction on several occasions. Every time ISP blocking is granted, the relevant websites are listed on the DGA’s website.

The DGA monitors the gambling market and can at any time open a procedure for revocation of a licence if it finds that the licence holder can no longer supply games in a sound financial and professional manner. Such a procedure has, to the best of this firm’s knowledge, not yet been opened.

Decisions made by the DGA may be appealed to the National Tax Tribunal for a fee of DKK1,100. Appeals against the decision made by the National Tax Tribunal must be brought before the Danish courts within three months of the decision. Otherwise, the decision from the National Tax Tribunal will be final.

The calculation of a fine is based on the business’s net turnover at the time of the violation.

As the DGA does not have the power to issue fines, it will be obliged to hand over the matter to the Danish police with the recommendation that the police issue a penalty notice that the violator can choose to accept and try in court. However, please note 3.7 Recent or Forthcoming Legislative Changes.

The provision of games covered by the Gambling Act is subject to duty under the Danish Gambling Duties Act. The duty percentage and the regulation and the frequency of payment vary depending on the type of game. Thus, in the following, the gambling tax rates will be outlined by sector.

The duty is based on a percentage of the GGR, which is the received stakes minus paid-out winnings.

A negative GGR in one duty period cannot be carried forward for set-off against positive GGR in subsequent periods. Subsequently, if there is a negative GGR for one period, the duty must be declared at DKK0.

Marketing costs that are not actual winnings for the players (e.g., bonuses and free spins) cannot be deducted when calculating the GGR.

Online and Land-Based Betting

The operator of online and land-based betting must pay a duty at 28% of the GGR. As regards betting exchanges, the duty is 28% of the amount charged in commission. In both cases, the duty is due on a monthly basis.

Online Casinos

The operator of online casinos must pay a duty at 28% of the GGR. For poker and other cases where the gambling operator’s profit is the commission charged, the operator must pay a duty at 28% of the amount charged in commission. In both cases, the duty is due on a monthly basis.

Land-Based Casinos

The operator of land-based casinos must pay a duty at 45% of the GGR minus the amount of special tipping chips plus an additional 30% on the part of the GGR that exceeds DKK4,453,400. The duty is due on a monthly basis.

Physical Gaming Machines in Restaurants or Gaming Arcades

The operator of physical gaming machines in restaurants or gaming arcades must pay a duty at 41% of the GGR. For gaming machines in restaurants, an additional 30% on the part of the GGR that exceeds DKK33,400is added. For gaming machines in gaming arcades, an additional 30% on the part of the GGR that exceeds DKK278,400 is added plus DKK3,300 per machine up to 50 machines and DKK1,700 per machine exceeding 50. The duty is due on a monthly basis.

Non-profit Lottery and Prizes in Connection with Free Games

With regard to cash prizes, operators of a non-profit lottery and prizes in connection with free games must pay a duty at 17.5% of the amount that exceeds DKK200. Regarding prizes consisting of goods or services (market value), such operators must pay a duty at 17.5% of the amount that exceeds DKK750. In both cases, the duty is due 15 days after the result of the lottery has been decided.

Other Duties and Relevant Fees

In addition to these duties, a licensed online gambling operator must pay an annual fee for the licence. The annual fee is fixed in classes varying from DKK60,900 to DKK5,481,000 (2023 level). The annual fee is due one month after the effective date of the licence and then on an annual basis.

Having a gaming machine is subject to an annual fee of DKK698 per gaming machine.

Gambling operators that provide gambling on horse racing will be charged 8% of the GGR of betting on horse races at Danish horse racing tracks. The fee will be calculated based on a three-month period.

Depending on the circumstances, the gambling operator may also be obliged to pay regular Danish company tax (particularly if the gambling operator is established/incorporated in Denmark).

See 3.7 Recent or Forthcoming Legislative Changes for further information.