Danish Online Gamblers Lose Ladbrokes

Published Thursday, July 09, 2015 - Online-Casinos.com
Danish Online Gamblers Lose Ladbrokes

The internet seems limitless when it comes to growth and online gambling is growing along with it. That being said the jurisdictional variations in the market are tending to sort out the strong operators and the weaker ones. In Denmark the online gambling industry has been steady and prosperous but has proved to be a weak link for iconic U.K. bookie Ladbrokes.

Regulated gambling in Denmark saw revenue rise 12% year-on-year, driven by strong gains in the online casino sector. Danish gaming regulator Spillemyndigheden reported total gambling revenue from its licensed betting and online casino operators at US $113.3m in the three months ending March 31. Denmark’s liberation of the online market has been viewed as much more successful than France’s regime which has been hampered by a heavy tax regime.

On the surface things in Denmark look rosy but reality has set in for Ladbrokes which has just informed customers of its Danish-facing site that it had stopped accepting new signups and wagers effective July 7th 2015 giving customers until the end of the month to cash out. Ladbrokes has been restructuring its international business dealings but did not mention an exit from the Danish regulated online gambling  market.  

The Danish Online Gambling Association has called for market reforms following Ladbrokes announcement that it would no longer do business in Denmark.  The association’s head, Morten Rønde was reported as saying  that the exit by Ladbrokes is an example of  the “very fierce, competitive situation” facing Denmarks licensed gambling service providers.  Danske Spil the government operator still controls 54% of the regulated gambling market.

Denmark recently elected a new government that included a leading role for the free-market Venstre party, which has previously considered a partial privatization of Danske Spil. The Association’s  Rønde has stated that more international operators holding Danish licenses could follow Ladbrokes lead. DOGA chairman Peter Weinreich, also noted that the country’s effective 22-25% online tax rate made profitability difficult.

 

 

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