The European Commission (EC) gave the green light to Denmark to open its online bingo and horse race betting market to private operators, putting an end to the monopoly that is currently held by Danske Spil. The decision of the European Commission comes after the three-month period to review the country’s draft law by the Commission and other European Union member states officially expired.
As revealed by the European Commission, the draft act seeks to open the online bingo market to private operators that would like to offer their services under a license. The major objective of the current status quo amendment is to provide local players with the chance to wager in a regulated, transparent and safe market with strict rules and prevent them from becoming part of any unregulated or illegal activities. Denmark Government is also focused on providing local players with adequate protection.
A few months earlier the Danish Government revealed its plans to make its horse race betting and online bingo market more liberal as soon as possible, by shrinking the nationwide monopoly of Danske Spil. The local Government was set to open up its market to private operators, with the country set to become the first one in the Nordic region to put an end to its existing horse race betting monopoly.
The regulated online gambling market of Denmark was officially opened at the beginning of 2012. The country has made sure that a regulatory framework for casino, poker and sports betting has also been presented. Currently, poker operators are allowed to tap into their international liquidities. Also, a 20% gross gaming revenues tax for online poker operations.
Earlier this year, the Ministry of Taxation revealed that there had been made a certain political agreement in order for the exclusive betting rights of Danske Spil in the horseracing market to be ended.
What is more, the amendments of the bingo market has been initiated after local authorities reported that the unregulated online bingo market is estimated to be approximately twice as large as the regulated market that has been currently operated under the monopoly of Danske Spil – the national lottery in Denmark, founded back in 1948. According to the Government such an industry model has become unsuitable for the constantly changing market, and more specifically, for the targets set by the underlying gambling legislation.
As mentioned above, transparency, fairness and customers protection are the main objectives set by the Government, which aims to make sure that local players are provided with games in a responsible, reasonable and risk-free way.
Bingo operations are not the ones that are aimed to be liberalised. The Government of Denmark also seeks to make some changes in the horse, dog and pigeon racing industry, both for the retail and online channels. In addition, local authorities has been focused on introducing a special contribution to horse racing. The addition would amount to 8% of the bets generated over local horse races.
- Author
Daniel Williams
