Denmark: Prosperity from Gambling and Online Casinos
Denmark has just released their newest statistics on the regulated online gambling sector, and the numbers are astounding. Particularly in the areas of sports betting and online casinos, growth rates are particularly notable. What does the entire financial situation look like?
High sports betting turnover due to the World Cup
Sports betting and online casinos drove Danish revenue growth in 2018. Gross gaming revenue increased by 5.7% compared to the previous year, going from DKK 9.22 billion to DKK 9.74 billion (~ EUR 1.13 billion), a rise of around DKK 520 million in just one year. These numbers were recently disclosed by the Danish Gambling Authority, Spillemyndigheden. The authority notes that this notable rise is largely because of the FIFA World Cup (14.06.-15.07).
Denmark's gross gaming revenue from sports betting climbed from DKK 2.33 billion to DKK 2.53 billion (~ EUR 339 million) in 2018, representing 26% of the total revenue for the year. The month with the most revenue was June, where sports betting brought in DKK 245 million (~ EUR 33 million), followed by a further rise to DKK 246 million (~ EUR 33.4 million) in July.
Growth brought on by market liberalization
Not only did sports betting revenue increase, but online casino revenue also saw a remarkable 19.5% increase in 2018. This resulted in an increase from DKK 1.81 billion to DKK 2.16 billion (~ EUR 289 million) compared to 2017. The online casino sector is now responsible for 22% of the overall revenue growth in Denmark in 2018. The local gambling authority highlights that a significant portion of this growth is due to the liberalization of the online bingo sector, which launched in January of the previous year.
The lottery sector remains the biggest money maker
The lottery sector, including charity lottery games, remains the highest source of income for games of chance in Denmark, representing 31% of the entire market. Revenue in this sector increased by 6.6% and jumped from DKK 2.33 billion to DKK 3.11 billion (~ EUR 416 million). Some of the most popular lottery games include Joker and EuroJackpot, generating the largest share of revenue in the sector, DKK 413 million (~ EUR 55 million). The scratch card category had the lowest revenue at DKK 248 million (~ EUR 33 million), with Keno emerging as the top brand with DKK 31 million.
Land-based casinos experiencing a decline
According to the Spillemyndigheden report, the decline of Denmark's land-based casinos was significant in 2018 and can be primarily attributed to the global online gambling boom. Revenue dropped by 5.8% from DKK 375 million to DKK 354 million (~ EUR 47 million), equating to 4% of Denmark's total gaming market. Additionally, conventional gaming machines—which make up 14% of the market—saw a decrease in revenue of 5.4%, falling to DKK 1.41 billion (~ EUR 188 million). The Danish Gambling Authority estimates that there are currently approximately 25,000 active gaming machines across the country.
The online sector continues to thrive
Thanks to the general rise in online gambling activity, Denmark's online revenue has become responsible for 54.5% of their total gambling revenue, up from 51.5% in 2017. The online sector doesn't seem to be slowing down. Spillemyndigheden has also analyzed the specific preferences of different types of players:
Mobile gaming was the most popular in 2018, generating over 52.4% of all revenue, compared to 49.3% in 2017. The tablet and desktop segments were 2nd and 3rd in the rankings.
The authority has also noted an increase in the weekly average gambling expenditure for all consumers over the age of 18, rising by 6.5% compared to the previous year, from DKK 38.50 to DKK 41.00 (~ EUR 6). Gambling was most popular among consumers aged between 26 and 35. Additionally, 17,555 people had registered as new gambling customers by the end of 2018—a 35% increase from the previous year.
Future regulatory measures planned
Due to the ever-growing popularity of online gambling, Spillemyndigheden intends to continue regulating the sector to maintain both the integrity of operators and players. In 2019, further regulatory measures are planned for implementation and improvement, firstly, to protect the Danish market from unlicensed providers from other European countries.
Summary
Denmark's regulated online gambling sector has experienced impressive growth, especially in the fields of sports betting and online casinos. The figures show revenue increase in these areas, primarily attributable to the FIFA World Cup, market liberalization, and the shift to online gaming. The lottery sector remains the largest source of income, while land-based casinos saw a decline. The online sector takes up an increasingly large percentage of total revenue, with the World Cup and regulatory changes being major factors.
Early this year, an unregulated gambling site was successfully blocked by Danish telecommunications companies at the request of the government's regulatory authority. This ruling was recently upheld by the Copenhagen City Court, who also issued a new set of guidelines for gambling operators working in the country. As of now, we'll have to wait and see what other developments take place in the Danish market.
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Source: www.onlinecasinosdeutschland.com
