Ladbrokes poised for new Danish casino, poker, sports betting licence
Ladbrokes will apply for an online operating licence in Denmark if the licensing framework currently proposed by the Danish government goes ahead, EGRmagazine.com can reveal exclusively.
LADBROKES will apply for an online operating licence in Denmark if the licensing framework currently proposed by the Danish government goes ahead, EGRmagazine.com can reveal.
The Danish government intends to make an unlimited number of licences available to private operators which will allow them to offer sports betting, casino and poker products to the Danish market. The licences will cost 3m-4m Danish Kroner (£340,000-£455,000) a year.
Ladbrokes’ country manager for Denmark, Richardt Funch, said that although the licensing costs may put off smaller companies from applying, the proposals as they stand represent a viable proposition for Ladbrokes.
“We are aiming and planning for a licence because Denmark is an important market for us, and the restrictions and conditions do not look more frightening than in Italy and Spain, which are other territories we have gone into.”
As reported on EGRmagazine.com earlier, 72% of Ladbrokes egaming turnover originates in the UK but much of the remainder comes from the Nordics. A Danish licence would enable Ladbrokes to consolidate its presence in the region.
However, Funch said Ladbrokes will need confirmation on the exact tax rate before applying for the licence, which has yet to be published. “Rumour and our sources tell us we are looking at 15%-20% gross win tax, which is acceptable for us. We would always love a lower tax- who wouldn’t? – but it would be business as usual for us with the tax rate around that level.”
Funch also suggests the Danish government’s proposal to only allow the state-licensed gambling monopoly, Danske Spil, to offer online bingo, lottery and scratchcards, may be subject to legal challenge from private operators.
“We will be getting a legal view on this and the arguments the government will use to support restricting these games to the monopoly because we believe that, in principle, games shouldn’t be treated differently. Admittedly, lottery has a historic structure attached to it, but when it comes to scratchcards and bingo, which we offer in other EU markets such as the UK, it becomes problematic,” he said.
The European Commission has until 7 October to report back on the Danish government’s150-page document outlining the licensing proposals.