BUSINESS

World Cup boosts Denmark’s online gambling market by 20% in 2014

TAGs: Danske Spil, Denmark, Spillemynddigheden

denmark-world-cup-online-bettingDenmark’s regulated online gambling market grew 20% last year, according to new stats by Danish gaming regulator Spillemyndigheden.

Former state gaming monopoly Danske Spil lost its iron grip on the Danish market three years ago but remains the market leader, although it suffered an annual profit decline of 5.8% in 2014. There are currently 29 operators licensed to offer online casino services in Denmark, while 15 operators have acquired online sports betting licenses.

Online operators reported gross gaming revenue of DKK 2.85b (US $403.7m) in 2014. Sports betting accounted for DKK 1.78b of that total, up 29% from 2013. The results were spurred by wagering on the 2014 FIFA World Cup, which generated revenue of DKK 760m. The online casino vertical rose by a comparatively paltry 5% to DKK 1.25b while poker fell 13% to DKK 170m.

Things weren’t so rosy at the country’s seven land-based casinos, which saw revenue fall 3% to DKK 325m. The 25,500 gaming machines scattered across the country’s small gaming halls and restaurants reported revenue of DKK 375m, down 5% from 2013. Making matters worse, land-based gaming operators pay significantly higher tax rates than online gambling operators, a system that was upheld by the European Union’s top court last September.

Online sports betting was up a more modest 12% to DKK 425m in the fourth quarter, while casino was up 7% to DKK 325m and poker was flat at DKK 40m. Land-based casino revenue was also flat at DKK 85m.

The Danish online gambling market has grown 40% over the past two years. Total revenue for all gaming products came to DKK 7,75b, up 3% from 2013. Per capita spending on gaming per Danish adult was also up 3% to DKK 1,750.

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com