Gambling Laws in Denmark

Gambling Laws in Denmark

Laws are essential for ensuring the efficiency and effectiveness of any activity. Any system needs to be governed and regulated to avoid simple mistakes that may compromise the success. This applies to gambling. Gambling in Denmark started centuries ago. Then, gambling in the country was limited to the lottery with only one casino countrywide.

After 1990, an act was enacted that allowed the establishment of other casinos. Today, gambling in Denmark involves all forms of gaming. Gambling activities in Denmark are regulated by the Danish Gambling Authority which is a subsidiary of Danish Ministry of Taxation. These bodies operate under the Danish Gambling Act 2016.

Below are the laws and regulations that govern gambling in Denmark.

Age eligibility and regulation

Even though gambling activities are currently legal in Denmark, the participants must be over 18 years. It is an offense for any person who is below the age limit to participate in any form of gambling.

Gambling products

Gambling products and activities are identified according to their definition in the Danish Gambling Act. The gambling products recognized by the act are:

Poker. According to the Danish Gambling Act, poker involves all types of card games. The most popular games in this category are Seven Cards, Omaha, and the Five-card draw.

Betting. According to the act, betting is any activity that gives the participants a chance to win prizes which they bet. These include betting on the horse, dogs, and pigeons which are conducted by Danske Spil, pool betting, manager games and sports betting.

Casino games. These are games of chances which include lotteries such as roulette, baccarat among others. Casino games which require some skills to win such as poker and blackjack are also included.

Slots and machine gaming

Lotteries including bingo, joker, lotto and class lotteries.
Combinational games. These are types of gambling in which the participants chance of winning depends on luck and the skill.

Land-based gambling licensing

Danish Gambling Act allows four types of gambling licensing. These licenses are issued and regulated by the Danish Gambling authority. The four types of licenses are:

  • A betting license which covers both online and land-based betting.
  • Local pool betting license which covers cycling and animal racing.
  • Land-based casino license which allows for the provision of lotteries and combination games.
  • Machine gaming licensing.

The license duration and cost vary depending on the type of license being issued.

Online gambling licensing

In Denmark, online gambling is legal and is also regulated by the Danish Gambling Authority under the Danish Act. There are three types of online gambling licenses.

  1. Online casino license.
  2. Betting license.
  3. Manager games license.

An operator may be issued a combined license to conduct both land-based and online gambling. The eligibility, duration, and cost of each license vary from one gambling product to another.

Gambling tax deduction

Gambling tax deductions are regulated by the Danish Gambling Act of 2016. Land-based casino operators must pay 45% of their gross gambling revenue plus 30% of values exceeding DKK 4 million as a tax. Similarly, machine gaming operators must spend 41% of their gross gambling revenue plus 30% of values exceeding DKK 30 000 plus another 30% of amounts exceeding DKK 250 000. Operators of online gambling usually pay 20% of the total gambling revenue as a tax.

Though there have been challenges in the Danish gambling market regulations, several reforms all aimed at enhancing the industry have been created. By doing so, all gambling activities are now efficient and secure.