Denmark’s July GGR Rises 2.6%

Denmark’s July GGR Rises 2.6% Amid Continued Decline in Land-Based Casino Revenue

As Denmark’s gambling market navigates shifting trends, the latest data from Spillmyndigheden shows a mixed picture for the industry. In July, Denmark’s gross gaming revenue (GGR) increased by 2.6% year-on-year, reaching DKK554 million (£62.2m/€74.2m/$82.6m). While online gambling continues to thrive, land-based casinos are struggling to keep pace. Explore how Denmark’s gambling landscape is evolving, the factors driving revenue growth, and the ongoing challenges for traditional gaming venues.

Online Casinos Drive Denmark’s GGR Growth

Online casino revenue was the standout performer in July, recording a 7.8% increase compared to the previous year and generating DKK284 million. This sector now accounts for 51.25% of total GGR, underscoring the growing dominance of digital platforms in Denmark’s gambling market. Despite this impressive growth, July’s figures still fell short of the record DKK309 million achieved in March, reflecting some volatility within the online space.

Sports betting also saw a modest rise, with revenue ticking up by 0.7% year-on-year to DKK149 million. However, this figure represents a notable drop from the DKK271 million posted in June during the height of the Euro 2024 tournament, highlighting the impact major sporting events can have on betting volumes. Sports betting now makes up 26.9% of the sector, showing a slight change from July 2023, when it accounted for 48.69% of GGR.

While the online sector’s growth is encouraging, the data also highlights the challenges facing traditional gambling formats, which have struggled to regain momentum post-pandemic.

Land-Based Casino Revenue Continues to Decline

Land-based casinos in Denmark are experiencing a downward trend, with revenues continuing to decline. In July, casino spending dropped by 9.4% year-on-year to DKK29 million, reflecting ongoing difficulties in attracting foot traffic. Slot machine revenue also fell, declining by 5.2% to DKK92 million, and continuing a trend seen in recent months. The July figures also marked a 9.3% decrease from June’s land-based casino revenue, further underscoring the ongoing challenges.

Slot machine GGR, a crucial component of land-based gambling, also dipped from DKK97 million in June, highlighting the sector’s struggle to recover to pre-pandemic levels. As players increasingly turn to online platforms, the appeal of traditional brick-and-mortar casinos seems to be waning, suggesting a possible long-term shift in consumer behavior.

Self-Exclusion Rates Rise: A Growing Concern

The Danish regulator also reported a rise in self-exclusion rates, with 51,226 players registered in the national self-exclusion scheme ROFUS as of July. This represents an 11% increase compared to the same period last year, reflecting heightened awareness and usage of responsible gambling measures. The figures included 17,157 temporarily excluded players and 34,069 fully excluded players.

Interestingly, self-exclusion registrations rose by 1.63% since June, when total GGR stood at DKK703 million. Men accounted for the majority of those excluded, making up 77.33%, while women represented 22.67%. This increase highlights the need for continued efforts in responsible gambling, particularly as online gambling becomes more accessible and popular.

Market Dynamics and Future Outlook

The July GGR data highlights the dynamic nature of Denmark’s gambling market. While online casinos and sports betting continue to grow, driven by convenience and technological advancements, the traditional land-based sector faces persistent challenges. The contrasting performances reflect broader global trends, where online gambling is rapidly outpacing physical venues in both growth and player engagement.

Denmark’s regulated environment, coupled with initiatives like ROFUS, positions the market to balance growth with responsible gambling measures. However, the ongoing decline in land-based revenues poses questions about the future of physical casinos and slot machine halls. Operators will need to innovate and adapt to maintain relevance in an increasingly digital world.

Denmark’s July GGR increase of 2.6% underscores the strength of the online casino and sports betting sectors, which continue to drive the market forward. However, the ongoing decline in land-based casino revenues highlights significant challenges for traditional gambling venues. As Denmark’s market evolves, the focus will need to shift towards enhancing the digital experience while maintaining robust responsible gambling measures. The rising self-exclusion rates underscore the importance of these initiatives as the country navigates the complex landscape of modern gambling. As consumer preferences continue to shift, Denmark’s gambling industry must innovate to stay competitive and sustainable in the years ahead.