Denmark Gambling License 2020
Gambling Consulting Expert provides practical and insightful consultancy, data, and market reports for the Denmark gambling industry.
Denmark iGaming License
Denmark is a prosperous and thriving nation of 5.5 million people – and as an independent country since the late 10th century, it is also one of Europe’s oldest states. Denmark’s political system is one of constitutional monarchy, allowing it to combine its nearly 1,000 years of history and tradition with all the features of a modern democratic state. Denmark is the southernmost country in Scandinavia, and its territory incorporates the Jutland Peninsula and around 406 islands.
The largest of these islands is Zealand, which is also the site of the capital, Copenhagen. Greenland and the Faroe Islands are parts of the kingdom of Denmark. Relations between Scandinavian Denmark and the two North Atlantic entities are close. Denmark is a developed and industrialized country with a market economy. Indeed many of its largest companies are household names across the world.
At the same time, the country’s state and other public authorities exercise considerable regulatory control in the social sphere (health, education, and social security), providing comprehensive services to all citizens. By international standards, Denmark has a high standard of living, and the differences between rich and poor are smaller than in many of the countries with which it is traditionally compared.
Denmark is a member of the European Union, and its proximity to Europe’s most powerful nation, Germany, has traditionally orientated the country to the south in an economic and political sense. Still, close cooperation with Sweden, Norway, Finland, and Iceland, with which Denmark has a passport union, also links it to the North. 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 is considered one of the pioneers of the Online Gaming Industry.
The government of Denmark offers casino operators, software, and service providers in the gambling industry, with a gambling license that allows gambling operators to conduct business related to casino, lotto, and other gaming-related activities. Denmark Gambling License is one of the most popular licenses for online casinos worldwide.
The regulatory basis for providing online gaming services in Denmark comprises of the Act no. 848 of 1 July 2010 on Gambling and the relevant secondary legislation, namely the Executive Order no. 67 of 25. January 2012 on online casinos and Executive order No. 66 of 25 January 2012 on the provision of online betting. January 1st, 2012 was a watershed moment for the Danish online gambling scene. This was the date when new legislation entered into force, liberalizing much of the market.
The organization that oversees the implementation of the Danish Gambling Act is the Danish Gambling Authority (Spillemyndigheden).
Denmark’s infrastructure offers a wide array of services for online gaming operators and providers, such as high-capacity private racks, private cloud services, custom dedicated servers amidst other hosting options. Denmark has long been recognized as one of the preferred locations for Online Gambling operators to base their operations. This success has been due to a combination of factors, such as a progressive legislative system, political stability, first-rate telecommunications facilities, and a well established financial services industry. A wide range of gambling sites operates out of Denmark including sports betting, casino sites, poker, bingo, and more.
Denmark Online Gambling Regulations
A Denmark Gambling License is issued by the Danish Gambling Authority known as ‘Spillemyndigheden’. It works in close cooperation with other government agencies including the taxation authorities and the Danish Tax and Customs Administration and Danish Business Authority. The Danish Gambling Authority is responsible for securing a proper and regulated gambling market in Denmark so that players are protected against unfair and illegal gambling.
Contrary to most gambling regulations, Danish gambling legislation does not distinguish between online poker and other online casino games. Poker is considered a casino game and is not subject to specific regulations, and is consequently regulated under the same rules as any other online casino game. The Danish Gambling Authority signed memorandums of understanding with the Alderney Gaming Commission and the Isle of Man before ruling that operators from any jurisdiction can apply for a license but firms will have to be approved by the Danish Gambling Authority.
National Anti-Money Laundering Regulations, Unusual Transactions Act, Counter-Terrorism Financing Regulations and Know Your Customer Policies are applicable to all Denmark Gambling Companies. As part of its duties, the Danish Gambling Authority monitors gaming businesses and services to ensure that they operate according to the standards and regulations of the Government of Denmark. Compliance audits are conducted on a regular basis to ensure that the terms of the license are met.
Licensees must maintain a complete audit trail for each player making a deposit with an operator, including financial transactions and individual bets. Gaming systems, including back-end software logs, must be made available to third-party auditors. Gaming rules, results of games, and pay-outs are to be made available to the Danish Gambling Authority for five years.
Let’s talk more about the benefits by understanding the reasons why obtaining a Denmark igaming license may be ideal for you.
How to Start An Online Gambling Business in Denmark
When starting a Denmark Online Gambling Business, first of all, it’s important to think about one of the most essential procedures, that is company registration and acquisition of the license. Denmark Gambling License gives many excellent opportunities to each licensee and makes their business profitable.
In order to receive a license from the Danish Gambling Authority, there strict guidelines to be followed. To apply for an Online Gambling License in Denmark, you will need to incorporate your company in Denmark. Then the Denmark Gambling Licensing process will begin.
Denmark has a corporate income tax of 28%, plus a 15% – 20% tax on bets. Gambling is exempt from VAT in Denmark, which also means that a Denmark-based operator cannot deduct VAT expenses when purchasing goods and services. With regard to corporate taxes, the gambling duty is seen as a tax-deductible business expense, which can be deduced in the operator’s corporate taxes.
Denmark has political stability, first-rate telecommunications facilities, and a well-established financial services industry. In addition, it maintains an attractive environment for international online gaming companies. Denmark Gambling License is recognized by many countries all over the world, so you will have a large potential customer base after getting it.
In order to obtain a Denmark Gambling License, the decision to approve the application is at the discretion of the Danish Gambling Authority, based on the documentation submitted by our experts. Denmark issues one Online Gambling license which covers all gaming operations, igaming service providers, network operators, affiliates, white-label operators, and igaming software suppliers.
With this Denmark Gambling License, online gaming companies can operate legally. Each applicant undergoes a thorough assessment, ensuring that licenses are only awarded to those applicants who are able to demonstrate such a financial standing and integrity as to preserve the international reputation of Denmark as an online gambling hub.
In case something does not correspond to requirements, the Danish Gambling Authority will provide a checklist of necessary improvements. A Denmark Gambling License covers all forms of online gambling including Casino, eSports, Poker, Sports Betting, Lotto, Bingo, Horseracing, Bitcoin Casino, Fantasy Sports, Games of Skill, and other gaming-related activities without being required to obtain one license for each individual product. Denmark Gambling License enables companies to operate all over the world.
Denmark Gambling Requirements
- Residence in Denmark. Operators wishing to offer their services to Denmark gamblers must be residents of Denmark and they must obtain the relevant licenses and authorizations from the Danish Gambling Authority. In case the company is a foreign entity, it must appoint a local director, whose domicile is in Denmark, to deal with the competent authorities in the country and have the power to conclude contracts on its behalf
- Opening of a bank account with one of the banks in Denmark where the operator would need to deposit the players’ money. Licensed remote gaming operators will only be allowed to make payments to players through the payment processors that have been approved by the Danish Gambling Authority
- Requirements regarding the minimum share capital of the company depending on the type of game it offers
- A monthly declaration giving details regarding income from games of change as well as the fees due will have to be submitted to the Danish Gambling Betting Authority on a standard form
- Compliance with the principles regarding the protection of minors as well as with the content of the promotional material used and the locations where they can be displayed
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