Denmark: Online Casino License

A developed Nordic Country, Denmark is considered as one of the pioneers of the online Gaming Industry. Denmark boasts of a very vibrant economy and a per capita income which is one of the highest in the world. The County is also favored as a business destination owing to the favorable business laws and the recognition of business registrations in other jurisdictions across the globe.

Denmark Online Casino License

A Denmark Casino License is issued by the Danish Gambling Authority known as ‘Spillemyndigheden’. It works in close cooperation with other governmental agencies including the taxation authorities and the Danish Tax and Customs Administration and Danish Business Authority.

There are two types of licenses which can be issued for online gaming in Denmark:

• Online Casino License
• Betting License

The Online Casino License allows for organizing Combination Games (Backgammon, whist and guessing competitions) and some other games such as roulette, blackjack, baccarat, punto banco, poker, and gambling on gaming machines. Games which are based 100% on chance are not covered under this license.

A betting license, on the other hand, covers events where players make guesses about the result of an event such as a game of football. However, there are limitations to betting licenses and horse and dog races, pigeon racing, results on lotteries and other randomly generated events are not covered under the license.

Remote Gaming in Denmark is broadly covered under the Gambling Act. However, both Online Casino and Betting have specialized legislation. While Online Casino Licenses are covered by the Executive Order on Online Casinos, online betting is covered by Executive Order on Online Betting.

Eligibility for an Online Gaming License

Denmark is renowned as a destination which promotes Offshore Gaming through highly transparent and flexible criteria. The four broad qualifications for obtaining a license for remote Gaming in Denmark are:

• The applicant must be a minimum of 21 years of age.
• He must not be under guardianship or requested guardianship (samværgemål).
• He must not have filed a petition for restructuring, bankruptcy or debt relief or be subject to restructuring, bankruptcy or debt relief proceedings.
• He must not have any debts outstanding to public authorities.

Requirements for companies remain the same except the age and guardianship criteria. However, for companies, members of the company’s executive board and its board of directors must meet the same requirements as an individual as mentioned above. There is no requirement for the person to be a citizen of Denmark or for a company to be registered in Denmark. However, for Greenland, citizenship of local company registration is required.

Cost of an Online Gaming License in Denmark

• A betting license
• An online casino license.
• A Joint License for betting and online casino.
• A betting license for a fixed term of one year with a gross gambling revenue limit of DKK 1 million (restricted revenue license).
• An online casino license for a fixed term of one year with a gross gambling revenue limit of DKK 1 million (restricted revenue license).

For the first two categories of licenses, an applications fee of DKK 261,800 needs to be paid at the time of application which is nonrefundable. For a joint application, an application fee of DKK 366,500 needs to be paid.

On the other hand for the restricted licenses, only an application fee of DKK 52,400 needs to be paid for each application. The restricted licenses have a cap of DKK 1 million in gaming revenues per year.

For the other forms of licenses, the following additional fee needs to be paid based on the gross gaming revenue. The gross gaming revenue is calculated as the amount wagered minus the winnings returned to players of the calendar year.

Gaming Revenue Amount / The fee to be paid (2016)

Below DKK 5,000,000 / DKK 52,400

DKK 5,000,000 to DKK 10,000,000 / DKK 261,800

DKK 10,000,000 to DKK 25,000,000 / DKK 471,200

DKK 25,000,000 to DKK 50,000,000 / DKK 680,600

DKK 50,000,000 to DKK 100.000.000 / DKK 890,000

More than DKK 100,000,000 / DKK 1,570,500

The authorities in Denmark also place special emphasis on maintaining a direct link with the online casinos through the ‘SAFE’ data storage and protection system, ‘ROFUS’- player exclusion program and ‘Nem ID’ system which enables verification of player identities from a digital database.

How to get a Gaming License in Denmark

On fulfillment of the above-mentioned criteria, a person or a company may make an application to the Danish Gambling Authority (‘Spillemyndigheden). The application is made on two main forms:

• Appendix A contains details on individuals applying for licenses
• Appendix B contains information about the games to be offered and registration of players.

Additional forms may need to be submitted for ‘Key Persons’ of the companies who will manage the operations. After acquiring the licenses registrations also need to be made with the Danish Business Authority and the Tax Administration.

Gambling Authority

On successfully obtaining a license, the licensee also receives permission to use the Label of the Danish Gambling Authority through a labeling scheme called “Tilladelse fra Spillemyndigheden”. This enables licensees to build trust by proving their authenticity and registration with the gambling authority.