Analysis DENMARK REPORT
importance centres on the market in which this integrated community offering will be based – the emerging Danish market, and the significance of the cross-border nature of the role that community, and, in turn, a more immersive entertainment offering plays throughout today’s new and emerging markets.
GAMINGINDENMARK The regulated online gaming framework in the European Union is in a transitional state, a patchwork, if you will, of regions liberalising their domestic markets through a variety of measured approaches. One such country is Denmark. As seen with many other Member States, the European Commission (EC) is pushing for further liberalisation of services in Denmark, so much so that the Danish government has announced its intention to open its online gambling market, likely in early 2011.
As we’ve seen in the most recent market opening in France, gauging the potential of a newly regulated market is a difficult practice but what is certain is that the domestic market in Denmark will significantly change. In addition to Danish-based gambling providers, foreign operators will be able to obtain a Danish license to offer online gaming to the
Danish market. What is also important is that foreign operators are unlikely to face the same restrictive approach to product offering as in France (only poker and sports offerings are permitted at present) whilst the government also seems set to open up the retail/land-based market.
The market also boasts some impressive figures where it concerns accessibility to Internet-based products. According to a report from the Media and Entertainment Consulting Network (MECN), Denmark has an Internet penetration rate of around 80 percent, coupled with one of the world’s highest broadband penetration rates of 40 percent, with the report claiming that Denmark is “practically predestined to become a leader in the online gambling market”.
As a strategic proposition, the gaming market in Denmark is very advanced and modern where the incumbent operators seek to be leaders in interactive gaming.
INSUMMARY Having contextualised the landscape in which the modern day iGaming industry carries out its operations, it is hoped that this article has, in some way, provided some clarity as to the role, and importance
G3i I ISSUE 2 I PAGE 64
MortenKolle Christensen,
ManagingDirector, Certus A/S.
Taxes on individuals inDenmark are
among the highest in Europewith, up until recently, income tax ranging from42 per cent up to 63 per
cent for income over €40,000
approximately. Capital income is
taxed up to 59 per cent and share
income is taxed at
between 28 per cent and 45 per cent for income over €15,000.
of community-based principles in creating a sensitive and relevant online gaming offering.
In addition, the role that new regulated markets will play in the progression of this industry cannot be emphasised enough. Markets like Denmark open up new possibilities to put tried and tested customer acquisition and retention principles into place in tandem with innovative solutions that adhere to the standards of localisation that have been such a key factor in the global expansion of the industry.
The community concept will play a vital role in future game development. We at Certus hope we will be able to make a progressive but sensitive difference in a market that is ready to fully open to the wider industry.
In a regulated future that potentially allows for penetration into a number of international markets brimming with opportunity, the ability to understand the key drivers and trends that will engender loyalty amongst your players, value for you and your partners, and a prosperous longevity for the wider industry will become more important than ever.
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