eGaming Review market focus: Denmark
Who, what and why in the soon-to-be-regulated market with the world's fifth-richest citizens.
EGAMING REVIEW in August revealed that Ladbrokes would be applying for an online gaming licence in Denmark once regulation proposed by the Danish government goes ahead.
The licences will allow operators to offer online sports, poker and casino products to Danish punters and will cost between £340,000 and £450,000 a year.
The likes of Labdrokes Nordics and Betsson are expected to apply for licences, although a potential tax rate of 15%-20% on gross win might deter others.
But with such high annual licensing costs added to the potential tax rate, many operators will instead try to enter the market through a white label partnership with media companies or sports bodies like the Danish football association.
x Danske Spil online gaming sales for 2008: DK1,5bn (215m).
x Danske Spil online gross win for 2008: DK888,5m (120m)
x Potential worth of the Danish egaming market if regulated: 210m-300m
x Population: 5.4 million. Internet penetration levels: 80%
x Main private operators: Bet24, Unibet, Expekt, Betsson, Ladbrokes Nordics
x Online gaming sales for private operators in 2009: 130m-150m
Data source: H2 Gambling Capital
This article first appeared in the September issue of eGaming Review.