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The History of Gambling in Denmark

The History of Gambling in Denmark

Marienlyst Casino is the oldest casino in Denmark. It opened its doors after receiving the green light from the then Crown Prince, later King Frederik VIII. The interest in the new casino was acquired quickly, and soon casinos began to open across the nation. One of the modern ways of experiencing gambling from this heritage is through its internet products – Play the hall's online platform. Denmark also started Danske Spil, a state-owned company that ran the first national lottery, which continues to operate to this day. Gambling remained a state monopoly until the Danish Gambling Act online casinos were legalized and the market opened for foreign operators. Denmark was the first Scandinavian nation to open its gambling market to international operators, and it provides considerable flexibility to operators.

Types of Licenses

There are two licenses provided by the Danish Gambling Authority for operators: one for online casinos and one for online betting.

Online Betting License

Operators can establish sportsbooks and provide betting markets with this license.

Online Casino License

This license permits operators to offer casino games. Blackjack, baccarat, punto banco, poker, roulette, and slot machines are allowed, but lottery games and scratch cards are not.

Application and Costs

To get a casino or betting license, an operator must submit applications and pay a flat fee of DKK 304,500 (circa USD 45,000). If an operator wants to get both a betting and casino license, it pays DKK 1,121,800 (circa USD 152,300). Upon approval from the Danish Gambling Authority, the license is issued for a duration of up to 5 years. The cost of renewal is DKK 304,500 for a single license and DKK 426,300 for both.

There are several technical requirements that online casinos and sportsbooks must adhere to. They vary from safety to reporting data, a certification program, and the mandatory offering of ROFUS services. The certification program enables testing and verification by the authorities. ROFUS is a self-exclusion tool that must be available in all licensed casinos and sportsbooks, giving players the option to exclude themselves for 24 hours, 1 month, 3 months, 6 months, or permanently.

Player Benefits

The Danish Gambling Authority's seal of approval has many benefits for players.

Many Top Casinos

You can reach many large online casinos and sportsbooks through the Danish Gambling Authority's website. Some of the most well-known operators that serve Denmark are 888, Betfair, LeoVegas, and Unibet.

Fair and Responsible

The strict certification scheme ensures that the licensed casinos and bookmakers are trustworthy. Operators must provide sufficient information about game fairness, error management, and more. Players are in safe hands while playing at a Danish-licensed website. Additionally, the mandatory ROFUS service allows players to exclude themselves when needed.

Responsive Customer Service

If you have a problem, it's easy to contact the Danish Gambling Authority. It's possible to report gambling operators or advertisements, and they respond fast and professionally.

Player Disadvantages

While Danish-licensed casinos and bookmakers are secure and trustworthy, there are some limitations to know about.

Game Restrictions

As already stated, lottery games and scratch cards are under state monopoly and cannot be featured in private online casinos.

Skin Betting and Loot Boxes Are Unregulated

Skin betting involves gambling with items that can be exchanged for cash rewards. Loot boxes also contain an aspect of gambling where the gamers wager money for unspecified rewards. The games are not yet prohibited in Denmark but are not officially regulated. The Danish Gambling Authority is, however, monitoring these activities, and regulation is on the way.

Enforcement of Licensed Casinos

In case you choose to play at a non-licensed casino, Danish residents must pay income tax on the winnings. Denmark imposes one of the highest income taxes in the world, at an average rate of around 45%. It is therefore better to stick with licensed operators where winnings from gambling are not subject to taxation.

Remote Licensing

Operators do not need to be physically present in Denmark to be licensed. They can obtain a remote license if they are established in the European Economic Area (EEA) or have a representative in Denmark or the EEA. The legal representative must be approved by the Danish Gambling Authority and submit personal information forms. The person serves as the representative of the license holder in all legal matters, both civil and criminal.

Conclusion

A license from the Danish Gambling Authority has several advantages. That a lot of well-known operators are available in the market fosters healthy competition, which is a sign of a vibrant and growing economy. While the tax on online gambling is quite high (28%), it is even higher for offline casinos (45%). With more and more Danish gamblers switching to online sites, the trend opens up wider and more profitable opportunities for operators and gamblers alike.

 

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