LICENSE IN DENMARK
Denmark is an economically developed country with the highest standard of living. Most international companies even consider Denmark to be the state with the smallest gap between the rich and the poor. If we talk about gambling, then until 2010 the state-owned company Danske Spil was engaged in licensing and other issues of the gaming industry.
Everything changed in 2012, when the DGA (Danish Gambling Authority), in close cooperation with the leadership of the European Union, signed an agreement with the Alderney Gaming Commission. Simply put, all operators who already have a facility under their jurisdiction in another country can obtain a Danish license.
True, this affected only online casinos, bookmakers and slot machines. Other games: bingo, lotteries, tote, etc. remain under state control.
Denmark Online Casino Licensing Details
Licenses for gaming establishments in Denmark are not very popular, unlike many offshore countries. Mainly because DGA imposed a substantial tax and established the strictest framework for issuing licenses.
So Danish licensing is chosen, for the most part, exclusively by reputable companies, with their own client base, with a stable income and a big name.
Now in the jurisdiction of Denmark there are about 210 gaming portals. Bets are accepted only in three currencies: euro, dollar and krona. The operator Danske Licens Spil is still operating.
Pricing policy, conditions and amount of taxes. Requirements for opening an online casino
Currently, DGA is engaged in licensing, and it puts forward the following conditions for license applicants:
● Providing a competent plan that will allow the commission to understand that the opening of this institution will be profitable and appropriate.
● The owner of the establishment must be over 21 years old.
● The casino owner should not have a criminal record.
● The business reputation of the organization must comply with the standards. The owner of the future institution must prove to the commission that the development of online casinos will occur at the expense of legally received funds.
● Be sure to pay a fee for opening an online casino or a sportsbook. The amount of payment is 37 thousand dollars. If you want to open a site where there will be a casino and a bookmaker, then it will cost 52 thousand.
● The license costs between 74 – 222 thousand US dollars.
The total cost is tied to the project and its estimated profitability. The license is issued for 5 years, but in some situations DGA issues a limited license for a year.
Each gambling site in the country pays two taxes at once. The first is income tax of 20%. In addition, corporate tax is paid, which is formed from the balance after deduction of income tax, it is 25-28%. Of course, there exist conditions that allow you to lower the rate, then everything depends on the profit of the institution.
Advertising. Financial control and other aspects
Only companies that have already obtained the license can advertise their own establishment and brand. You can’t even advertise your own product at a time when DGA is considering issuing a license. In addition, the law prohibits the use of third parties in advertising.
All finances of each player must be located on their own bank account (support for instant transfers). The casino should implement daily accounting. Please note that the amount on the user’s balance sheet and the amount on his account must be identical. At any time, the supervisor has the full right to request financial statements, and the owner of the institution must provide it.
The country also has a directive 2005/60 / EC. What does it mean? It’s simple, in Denmark it is forbidden to engage in money laundering.
Among other things, the supervisor requires annual reports on the organization’s achievements in the online gambling market. Success in the market is the key parameter that interests DGA in the first year of the casino’s existence.
Of course, all according services are provided exclusively to local users. Do not forget about the timely update of the software, which must comply with international standards. Currently, the gambling market in the country is distributed in the following way:
● Danske Lotteri Spil – almost 35%
● Slots – 21.5%
● Bookmakers – 18.3%
● Online casinos – 13.1%
● Other projects with a lottery – 4.7%
● Real casinos – 4.4%
● State lottery – 3.2%
Danish Government Department of Licensing Contact Information
● Address: Helgeshøj Allé 9 Business Center (Helleshoy Ali), Tostrup
● Phone number: (+45) 72 38 79 13
● Website: www.skat.dk
● Email: email@example.com
Why is it worth choosing a license in Denmark?
As mentioned above, local jurisdiction can only be interesting if your project has been successful in other countries. Startup companies without a good reputation in the Danish jurisdiction, for obvious reasons, have absolutely nothing to do. The project will definitely be unprofitable.
In fact, this solution has only one plus: Denmark is a cost-effective territory from which considerable profit can be made. The population in the country is only 5 million, but they all earn enough to provide a high standard of living.