Danske Spil on path to £385m part-privatisation
Upcoming general election and pressure from competitors could see Danish state-owned operator split up by the end of the year
Denmark’s former gambling monopoly Danske Spil could be partly-privatised as part of a £385m sell-off as early as this year, eGaming Review has learned.
A consensus has emerged among political parties, ahead of a general election which must take place before 15 September, that it is not the government’s place to run an online gambling business and therefore should dispose of its assets.
Venstre, Denmark’s centre-right liberal party which currently leads the polling, has said it will sell off Danske Spil’s online betting and casino arm, but the lottery will remain state-owned.
And Venstre’s corporate tax spokesman Mads Rørvig said the sale could raise around 4bn kroner (£385m).
The Danish Ministry of Finance, which owns Danske Spil, refused to confirm the reports, which have become an open secret ahead of this year’s election.
“I can inform you that there are no current plans to sell off or privatise any part of Danske Spil,” a Ministry of Finance spokesperson told eGR.
But according to Morten Rønde, chief executive of the Danish Online Gambling Association (DOGA), the sale process could begin as early as the end of this year.
“I think it was always the long-term goal when this company was created,” Rønde told eGR. “Why would the state own a commercial online gambling company?
“From an ideological and political perspective, the Liberal and the Conservative paties, and other parties, are in favour of selling this company and it does make a lot of sense,” he added.
A sale would be welcome news to other online operators in the regulated Danish market. Competitors have complained of a competition issue raised by Danske Spil’s cross-selling of its online casino to customers in its monopoly databases.
“If the sale means a split of customer databases and an end to the competition situation then I think most competitors would be happy to see it sold,” said Rønde.
Danske Spil’s share of the online betting and casino market is hard to quantify because the arm which operates these verticals is combined with its offline betting shops.
While it holds a 54% share of betting and online casinos, its almost total dominance of offline betting means its online share is thought below 50%, with DOGA last year estimating it to be 34%.
But its online operations are still substantial enough to attract attention, and it is possible the arm will be split up, with brands sold to different operators.
Rønde said that with June now looking the most likely month for the election, any sale won’t be until the end of this year, or early 2016, when the new government begins to look at the possibility.