Danish government to liberalise online bingo market
Danish Gambling Act amendment to open up vertical to new operators in an attempt to reduce size of unregulated market
Denmark’s online bingo market could be opened up to competition as the Danish government prepares new legislation which will remove Danske Spil’s status as the vertical’s monopoly operator.
An amendment to the country’s Gambling Act is expected to be put before the Danish Parliament over the next few sessions and, according to sources, could come into effect during Q2 2018.
The proposal comes as the government no longer deems the country’s monopoly system as effective, with the introduction of licensed competition now considered the best way to channel players away from unlicensed operators and increase tax revenues.
According to government estimates, the unregulated online market is estimated to be nearly double the size of the regulated market operated by Danske Spil.
“Online bingo was not part of the liberalisation of the 2012 as it was reserved for Danske Spil,” Danish Online Gambling Association CEO, Morten Ronde told EGR Intel.
“They have not been able to grow the product. In fact they earn less on bingo than before the liberalisation.
“They are virtually making no money on it now, which means there is basis to try and license the product to see if it can be grown in the competitor’s market.
“There are a few operators who are interested and who have good bingo products. In general it is going to be healthy for the market to be more diversified,” he added.
The draft also includes plans to liberalise betting on horse and dog races in line with totalisator and fixed odds betting, as well as introduce a special contribution to horseracing in the form of a parafisical tax.
The special contribution of 8% on horseracing turnover will be subject to ratification by the European Commission due to state aid rules.