CalvinAyre.com says – High tax rates and a tiny population of 5 million people puts Denmark’s gambling licence in the only if you need it category.
Up until midway through 2010 all regulated online gambling was done through the gambling industry monopoly, Danske Spil. The country then embarked on a long process to adopt new laws on the industry and the market opened on 1 January 2012. The delay was down to a State Aid argument put forward by land-based operators angry at the based differing tax rate offered to online operators. It went all the way to the European Commission who ruled in favor of the Danish Gambling Authority.
The DGA signed memorandums of understanding with the Alderney Gaming Commission and Isle of Man before ruling that operators from any jurisdiction can apply for a license but firms will have to be approved by the DGA.
Licensees are not allowed to offer bingo, scratch cards or drawing lots, only Danske Spil and Det Danske Klasselotteri can only offer them. In terms of betting Danske Spil is the only operator that can provide betting on horse and dog races, pigeon races, results of lotteries and other randomly generated events.
Type of Company Entity Available for iGaming Firms:
Any company that is licensed by a recognized jurisdiction or approved by the DGA
Corporation Tax Rate:
28% for all companies operating in Denmark
Additional Gaming Tax Rate:
20% tax on gross gaming revenue
Minimum Share Capital for an iGaming Company:
No minimum capital but they must prove that activity will take place on an appropriate professional and financial basis.
Security Requirements/Indemnity for Players Deposits:
Players’ funds must be kept separate in a “setoff-free” account at a bank. Accounting system should always be available for scrutiny and must be updated every day to ensure amounts in player accounts are the same as those in the setoff-free account.
License Fee:
Two different licenses are available:
1) A betting license
2) An online casino license
You can also apply for either license for a fixed term of one year with GGR limit of DKK 1million.
DKK 250,000 to offer either betting or online casino.
DKK 350,000 on application for license to offer online betting and online casino.
DKK 50,000 for a restricted license
Annual Fee:
Adjusted depending on revenue:
Less than DKK 5,000,000 = DKK 50,000
DKK 5m to DKK 10m = DKK 250,000
DKK 10m to DKK 25m = DKK 450,000
DKK 25m to DKK 50m = DKK 650,000
DKK 50m to DKK 100m = DKK 850,000
More than DKK 100m = DKK 1,500,000.
License Duration:
Five years (or one year for a restricted license)
Software Testing Requirements:
All systems must meet standards described in three documents:
- Technical Standards of the Danish Gambling Authority
- The Gambling Authority’s programme for managing system changes
- The Gambling Authority’s requirements for accredited testing agencies.
Reporting Requirements to the iGaming Regulators and/or Financial Regulator:
Compliance report must be sent after one year and before being approved all companies must provide proof that they comply with the DGA’s Appropriate Financial Operation regulation
Anti-Money Laundering Policy for iGaming Firms:
Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing is implemented.
Restrictions on Jurisdictions from which you can take Wagers:
Just from Danish customers.
Contact Details of Government Department or Regulator:
Address: The Danish Gambling Authority
Helgeshøj Allé 9
2630 Taastrup
Phone Number: (+45) 72 38 79 13
Website: http://www.skat.dk
Email: [email protected]
