Pros and Cons of a Danish Gambling License
Evaluating the pros and cons is crucial for businesses deciding if Denmark's regulated gambling market aligns with their goals. Operating in Denmark comes with both opportunities and challenges.
Benefits
A Danish gambling license offers several advantages for operators aiming to establish themselves in the Nordic region.
Benefit |
Description |
Market Access |
Legal entry into Denmark's regulated gambling market |
Boosted Reputation |
Enhanced brand image through compliance with strict regulations |
Player Protection |
Strong safety measures that build customer trust |
Operational Clarity |
A transparent regulatory framework ensures predictable operations |
One standout benefit is the structured regulatory system managed by the Danish Gambling Authority (Spillemyndigheden). This system provides clear rules and standards, safeguarding market integrity and protecting both businesses and players [1].
Licensed operators also benefit from increased consumer trust and loyalty by meeting strict requirements, such as those for responsible gambling and anti-money laundering measures [3].
Drawbacks
While the Danish market has its advantages, operators must also weigh several challenges.
Some of the key drawbacks include:
-
High costs, including application fees, yearly fees, and a 28% tax on gross gaming revenue (GGR)
-
Complex compliance demands, especially with new certification rules set to take effect on July 1, 2025
-
Restrictions on certain game types, advertising methods, and operational practices, which can limit flexibility
-
The requirement for non-EU/EEA companies to appoint a Danish representative [1][2]
Additionally, game suppliers and B2C operators face extra hurdles due to dual certification requirements [3].
Success in Denmark requires operators to carefully assess these benefits and challenges in the context of their business goals and resources. While the regulatory framework provides a solid foundation, the financial and operational demands necessitate thorough planning.
For many, the advantages of holding a Danish gambling license outweigh the obstacles, making it a strategic choice for long-term growth.
How to Apply for a Danish Gambling License
The Danish Gambling Authority (Spillemyndigheden) has a clear process for applying for a gambling license. Here's a breakdown of the steps and what you'll need to get started.
Before You Apply
First, gather all required documents. This includes the main application form (2-01), personal declarations (Annex A), gambling service details (Annex B), and a business plan (Annex C). You'll also need to ensure your systems meet the authority's technical standards, such as providing data warehouse access and using the Tamper Token system to secure gambling data [1].
Once your paperwork is complete and your systems are ready, you're good to move forward with the application.
Application Submission and Review
The application process involves a few key steps:
1. Submit All Documentation
Upload all required annexes through the "Bluewhale" program. This is necessary because the standard application form cannot handle large file uploads. The Danish Gambling Authority offers detailed instructions for using Bluewhale on their website [2].
2. Pay the Application Fee
As of January 2025, the fees are:
-
Single license (betting or online casino): DKK304,500
-
Combined license (betting and online casino): DKK426,300
3. Wait for Review
Once you've submitted everything, the review process typically takes three months, as long as your documentation is complete and accurate [2].
After Approval
After your license is approved, you'll need to set up several systems and meet ongoing requirements. These include:
-
Integrating ROFUS (the Danish self-exclusion system)
-
Regularly reporting data to the Danish Gambling Authority
-
Maintaining responsible gambling measures
-
Implementing anti-money laundering protocols
-
Preparing for updated certification standards effective July 1, 2025 [3]
You'll also need to display the Danish Gambling Authority logo and fulfill financial obligations, including annual fees outlined in the 'Requirements' section.
Licenses are valid for up to five years, but revenue-restricted licenses are capped at one year and DKK1 million in gross gaming revenue [1]. Staying compliant and planning for renewal will ensure your operations run smoothly in Denmark's regulated market.
B2C and B2B Licenses in Denmark
Denmark offers two types of licenses for gambling businesses: B2C (Business-to-Consumer) and B2B (Business-to-Business). Each is designed to meet different operational needs.
B2C License Details
B2C licenses allow businesses to offer gambling services directly to players, covering both online platforms and physical betting locations. Here's a breakdown of the key details:
Requirement Type |
Details |
Application Fee |
DKK 304,500 for a single license (betting or online casino) |
Combined License Fee |
DKK 426,300 for both betting and online casino |
Validity Period |
Up to 5 years |
B2C operators must ensure player protection, connect to the ROFUS self-exclusion system, and follow anti-money laundering regulations [1].
B2B License Details
B2B licenses are for companies that provide gambling software and services to operators. These licenses come with stricter technical and certification requirements, including dual certification for businesses involved in both B2B and B2C activities.
Requirement Type |
Details |
Application Fee |
DKK 304,500 for a single license |
Validity Period |
Up to 5 years |
B2B operators must meet the Danish Gambling Authority's technical standards, maintain detailed compliance documentation, and provide records of all gambling-related software and services [1][3].
Understanding these license types is just the first step - renewing them on time is crucial to staying compliant and operational.
sbb-itb-7fe6294
Renewing a Danish Gambling License
Renewal Schedule
To renew a Danish gambling license, operators must submit their applications at least 2 months before the license expires. Licenses are issued for a maximum of 5 years [1].
License Type |
Renewal Application Fee* |
Processing Time |
Single License (Betting or Casino) |
DKK 121,800 |
2+ months |
Combined License (Betting and Casino) |
DKK 152,300 |
2+ months |
*The renewal application fee is separate from annual fees, which are based on Gross Gaming Revenue (GGR).
Documents Needed for Renewal
Operators are required to provide the following [1][2]:
-
Completed and updated application forms (2-01, 2-02, 2-03, and 2-04 for non-EU/EEA operators, if applicable)
-
Financial statements and compliance-related documents
-
Criminal record certificates and debt declarations
-
Evidence of annual fee payments
-
Verification of compliance with technical standards
Changes in Renewal Criteria
From July 1, 2025, new certification standards will apply to game suppliers. These standards include stricter technical compliance, improved responsible gambling measures, and enhanced anti-money laundering protocols [3]. Operators managing both B2B and B2C activities will need to pay close attention to these updates.
Annual fees will continue to be calculated based on Gross Gaming Revenue (GGR), as outlined in the 'Requirements' section. Maintaining compliance with these financial obligations is critical for a successful renewal.
The Danish Gambling Authority offers detailed guidelines and resources to help operators meet the necessary requirements [2]. Staying ahead of these updates is key for operators looking to maintain their foothold in Denmark's regulated gambling market.
Understanding the renewal process and associated costs ensures compliance and helps avoid interruptions in operations within Denmark's gambling industry.