The Danish Gambling Authority (DGA) regulates online gaming in Denmark. Known as Spillemyndigheden, it issues licenses, monitors operators, and performs many other functions.
This guide discusses the DGA’s role and reputation. It also covers the process that Spillemyndigheden online casinos go through to obtain licensing.
How do online casinos obtain a Spillemyndigheden license?
Applicants should visit the relevant section of Spillemyndigheden’s website to start the process of earning a license. Necessary forms that operators must fill out include:
- 2-01 (online casino and/or betting application)
- 2-02 (personal declaration)
- 2-03 (information about gambling supply) if necessary
Spillemyndigheden reviews these forms and offers approval to qualifying operators. Online casino licenses are valid for five years.
Prospective casinos must pay an application fee of DKK 285,800 ($45,000) when submitting the forms. Those seeking to combine casino gaming with betting need to pay DKK 400,100 ($65,000).
Aside from filling out forms and covering fees, operators must give Spillemyndigheden access to their data warehouse. Casinos need to save gambling data in this warehouse via the security system Tamper Token.
Additionally, operators must watch for potential gamblers who could be in ROFUS (register of self-excluded persons).
Spillemyndigheden features a game testing program that ensures fair gaming. Online casinos are to remain certified under this program at all times while holding a Danish license.
Benefits of a Spillemyndigheden casino license
This licensing jurisdiction has attracted several notable brands, including 888, Betway, Casumo, LeoVegas, Mr. Green, and Unibet. Here are the main reasons why Denmark features a successful online gaming market.
Spillemyndigheden boasts a strong reputation for protecting players, vetting operators, and ensuring fair gaming. It uses several measures to ensure that licensees treat customers well.
The Danish Gambling Authority isn’t simply out to generate money for the national government. It heavily scrutinizes applicants to ensure that only worthy candidates gain approval.
Spillemyndigheden’s efforts have paid off by making Denmark a credible gaming jurisdiction. DGA online casinos stand a better chance of attracting gamblers who are looking for a trustworthy gaming site.
With 5.8 million residents, Denmark may not be the largest country. Nevertheless, it serves as a lucrative online gaming market.
Mainstream advertising is the primary reason behind Denmark’s advantageous market. Approved operators can advertise to the Danish through mainstream outlets.
What does the Danish Gambling Authority do as a regulator?
Based in Odense, Denmark, Spillemyndigheden consists of four parts:
- Licensing – Reviews applications and approves worthy operators.
- Policy and finance – Certifies that licensees maintain financial solvency and separate player deposits from operational funds.
- Compliance – Ensures that operators follow Spillemyndigheden’s policies.
- Land-based gambling – Handles brick-and-mortar casinos and sportsbooks.
Outside of the land-based gambling division, each of those departments plays an important role in the country’s online gaming. Collectively, they carry out the following tasks:
- Protect problem gamblers.
- Ensure that gaming sites don’t target minors with advertisements.
- Prevent money laundering and other criminal activities.
- Take action against operators that break the rules.
Spillemyndigheden’s reputation as a regulator
The DGA holds plenty of credibility as an online gaming authority. It manages operators with rigid policies and works to keep unlicensed casinos out of its market.
In March 2020, Spillemyndigheden blacklisted 16 gambling sites that were illegally serving Danes. The DGA also required Danish internet service providers to block the illegal sites from their market.
This regulator sees unlicensed casinos as a threat for two main reasons:
- It doesn’t collect fees from rogue gaming sites.
- Unapproved operators can rip Danes off without legal repercussions.
The Denmark online gaming market is not without its criticisms. It already features one of the highest tax rates of any jurisdiction at 20%.
Politicians voted to increase this rate even further through the 2020 Finance Act. In 2021, online casinos will begin paying a 28% tax rate on gross gaming revenue.
The DGA has also drawn heat for letting Danske Spil hold a monopoly over multiple forms of gambling.
Danske Spil currently dominates the bingo, horse, racing, keno, and lottery industries. This monopoly limits Danes’ options and prevents the gambling market from evolving.
Weighing the pros and cons, Spillemyndighede is a solid regulator that could make some improvements. It excels at running the online gaming sector and approving quality internet casinos.
However, the current tax rate bars many operators from applying. Most internet gaming jurisdictions feature rates ranging from 1% to 15%.
Can you trust Spillemyndigheden casinos?
DGA online casinos are among the most reputable in the world. As per their licensing arrangements, they must meet high standards to serve this market.
Key points behind DGA casino licensing agreements include:
- Providing financial details
- Safeguarding problem gamblers
- Advertising responsibly
- Working to prevent money laundering
- Separating customers’ money from operational funds
Financial details show that an online casino is solvent and can make payouts. Spillemyndigheden requests financial documents when reviewing applicants.
Online casinos enact measures to watch for problem gambling. This task includes making sure that nobody on ROFUS attempts to play.
Responsible advertising involves running ads that don’t target minors or mislead gamblers on the odds of winning.
The act of separating customers’ funds from the operational budget (a.k.a. ring-fencing) reassures players that their money is safe. Provided gamblers’ deposits are separate, casinos can never dip into these funds.
How do online casinos get a license in Denmark
Interested parties can find the application forms on Spillemyndigheden’s website. They must fill out multiple forms (2-01, 2-02, and [possibly] 2-03) and provide requested materials (e.g., financial documents).
Operators also need to submit an application fee. They must pay DKK 285,000 for casino gaming alone or DKK 400,100 for gaming and betting.
The DGA reviews the forms to determine if the applicant deserves approval. It can also offer guidance if necessary.
Once approved, internet casinos must use ROFUS to ensure that customers aren’t on the self-exclusion list. They also need to seek game testing for proof of fair gaming.
Is Denmark an expensive licensing jurisdiction?
Spillemyndigheden doesn’t feature the cheapest nor most expensive jurisdiction. Its licensing fees are competitive with many regulatory authorities.
The DGA charges $45,000 for an online gaming application. Here’s how much some other jurisdictions charge for the licensing process:
- Gibraltar – £100,000 ($134,000)
- Isle of Man – £40,000 ($54,000) for the application and obtaining a license if approved
- Malta – €25,000 ($30,000)
- Sweden – SEK 400,000 ($46,000)
As explained before, Spillemyndigheden’s main hangup regarding costs is the tax rate. As of 2021, operators will pay a hefty 28% tax on income.