Danish Ministry Proposes Regulatory Enhancements with Revised Slot Fees

Are you keeping up with the evolving landscape of gambling regulation in Denmark?

The Danish Ministry of Taxation has put forth a compelling proposal that could significantly shift the dynamics of the gambling industry.

Imagine a robust regulatory framework where the integrity of sports and gambling is upheld through enhanced oversight and state-of-the-art data analysis.

Dive into the details of the proposed amendments that aim to empower Spillemyndigheden with greater authority and introduce a forward-thinking fee structure for slot machines.

The Danish Ministry of Taxation is advancing proposals designed to invigorate Spillemyndigheden with new regulatory capabilities, coupled with an innovative funding mechanism. The proposed amendments to the Denmark Gambling Act aim to grant the national gambling regulator the authority to obtain “necessary information” and facilitate “confidential information exchange” to counteract match-fixing.

In a concerted effort to uphold sports integrity, the ministry is advocating for Spillemyndigheden to wield increased sanctioning power, including the issuance of injunctions. A critical provision would authorize the revocation of licenses for gambling operators violating sports integrity regulations. Furthermore, the regulator’s capacity to scrutinize and dissect gambling data would be bolstered, utilizing a unique player ID for vigilant monitoring of match-fixing and money laundering risks.

Pending approval, these enhanced powers are slated to be operational by July 1, 2024. To offset the costs associated with these expanded capabilities, the Ministry suggests a reformative approach to slot machine fees. Instead of a per-machine fee, licensees would contribute based on taxable gambling revenues. Additionally, the introduction of a new license for B2B suppliers is on the table.

These amendments to slot fees are projected to yield an extra DKK 1.3 million in 2024, escalating to DKK 3.5 million by 2025. The B2B licensing framework is anticipated to generate revenue starting at DKK 1.3 million in 2024, increasing annually until 2031, and then stabilizing at DKK 2.4 million from 2032 onward.

This initiative follows Spillemyndigheden’s recent assumption of responsibility for safeguarding sports integrity, a function previously managed by Anti-Doping Denmark. The ministry’s consultation process is comprehensive, encompassing dialogue with key industry stakeholders such as the Land-based Gambling Association Denmark (LGA), the Casino Association, and several others, ensuring a collaborative approach to these transformative regulatory changes.

In a related development, Denmark’s gambling self-exclusion mechanism, ROFUS, has expanded its reach to include retail betting and land-based casinos, alongside online platforms. The bolstering of ROFUS was facilitated by new identification regulations for retail betting, marking a significant step in Denmark’s commitment to responsible gambling practices.