Online Gambling in Denmark Sees Varied Financial Results

Published Wednesday, January 09, 2013 - Online-Casinos.com

A recent article about Denmark and its opening up of it online gambling market to operators not located in Denmark suggested that everything was going well in that jurisdiction of Scandinavia. Denmark is doing well by all accounts and is happy so far with its decision to liberalize the industry. They even extended the licenses of operators for five years past the original beta one year plan.

Some firms however aren’t that interested in continuing to offer their services in Denmark 888 being the most obvious abstainer. 888, conspicuous by their absence from those wishing to cash in on the privilege decided it wasn’t worth the effort to continue. A spokesperson told GamblingCompliance that Denmark was “not a material market for us” and there were other jurisdictions in which the company would be “better off spending our money to go along with their regulation than Denmark’s.”

This statement sounds like the honeymoon is over in Denmark where some operators are reporting less than stellar earnings since they began to offer gambling options to Danes. Danske Spil still owned and operated by the government is reported to control sixty two percent of the gambling market in the country.

The Danish Gambling Authority’s figures for the first nine months of regulated online gambling business revealed that 23 of the 51 gaming licenses that are spread among 33 operators individually earned gross gaming revenue below 5m DKK that a mere $876k. USD On the flip side of the coin, eight online casino and four sports betting licenses earned over DKK 25m or $4.38m USD, while another 16 licenses fell somewhere in between. The range of earnings says something about the situation the operators face in Denmark, and it is possible that other online gambling operators on the lower end of the scale may rethink their offerings in the jurisdiction. 888 may be the tip of the exit iceberg and the first but not the last to read the writing o the wall in Denmark.

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