Reports
Although relatively small theDanish gamingmarket is
still a very attractive one and around DKK11bn (around
US$230m) is spent on gambling each yearwhilst state profits amount to
DKK2.8bn ofwhich DKK1.6bn goes to charitable
organisations. Total turnover in
2008 for theDanish gamingmarket (not including casinos or online casinos) amounted to
DKK25bn according
to Skatteministeriet (TaxMinistry). The gross gaming
revenue is estimated to be around
DKK7.7bn in 2008
which includes land and online casinos whilst eachDanish person spent approximately
DKK150 permonth on gaming.
DENMARK
whilst each Danish person spent approximately DKK150 per month on gaming. There are currently 27,150 AWPs in the market (2009) which saw a gross gaming revenue of €2,034m last year.
Denmark has been hit by the recession like other countries worldwide and October and November 2008 saw a decline in income from AWPs of around 20 per cent. Many of the larger operators appear to be struggling the most in keeping up their turnover.
Meanwhile the smoking ban also hit the industry hard and sales in practically all arcades have declined. Dansk Automat Spil’s saw a drop of 10 per cent in its turnover last year.
But as the saying goes “One man’s loss is another man’s gain” and there is now a renewed interest in the Danish market due to its current situation, coupled with the legislation changes expected next year.
One of the problems is that the current manufacturers in Denmark are now also offering direct rentals with site owners, which has caused issues with many operators.
To take advantage of this situation and in anticipation of new market legislation JPM has developed a new range of products specifically for the Danish market. A new company called JPM Spil has been set up and is headed by Vagn Buchwald, formerly of CompuGame who has 20 years experience and knowledge of the market.
• Between one and three AWPs are allowed in restaurants
• All sites must have a licence to operate AWPs
• Gaming licences are issued for one to five years or the limit of the alcohol licence.
• Gaming licence fee is DKK750 (€100) per machine per year
• Games operates with a 50 ore (7c) and DKK300 (€40) maximum payout
• Taxes are paid monthly and in restaurants 40% of cash box is paid for up to DKK30,000 (approx €4,000) or 70% of cash box for anything over DKK30,0000. A further 1% is paid for gaming addiction research.
• In arcades taxes are 40% of cashbox for up to DKK250,000 (approx €33,000) or 70% for anything over DKK250,000. Plus the 1% for gambling research.
• Operators need to pay a deposit to guarantee the tax before operations begin. The deposit is DKK7,500 for restaurants and DKK95,000 for arcades.
The Games, Lotteries and Betting Act issues licences to lottery operators provided they pay taxes to the Danish government. However it states lottery licences can only be issued to a Danish company set up as a limited liability company.
Although relatively small the Danish gaming market is still a very attractive one and around DKK11bn (around US$230m) is spent on gambling each year whilst state profits amount to DKK2.8bn of which DKK1.6bn goes to charitable organisations.
Total turnover in 2008 for the Danish gaming market (not including casinos or online casinos) amounted to DKK25bn according to Skatteministeriet (Tax Ministry). The gross gaming revenue is estimated to be around DKK7.7bn in 2008 which includes land and online casinos
Vagn Buchwald of JPM Spil said: “Takings in the past have been good in Denmark which has meant that most operators have not invested in new machines. It is therefore not difficult to understand why takings in Denmark are now falling.
“Takings in 2009 fell by more than nine per cent and this resulted in the Danish manufacturers hardly selling anything for the last six months. They have now started selling or leasing slot machines directly to gambling premises with a licence for three slot machines each or to arcades.
“This however is not popular among Danish slot machine operators in the established business. They are now looking for new suppliers, which means I can see an opportunity to enter the Danish market right now. I can hopefully sell to the established businesses.”
JPM Spil is now presenting two models to the Danish market which will be housed in JPM’s Linear cabinet which until now has had limited exposure outside central Europe.
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