problems with some operators because it required them to duplicate their infrastructure.
The changes mean that it could allow part of a licencee’s server to be located in countries or jurisdictions outside of Denmark’s bilateral agreement framework. The list of countries this will include has not yet been made official. It is thought however the list will include countries where potential licensees are already operating.
This will open a window of opportunity for foreign gambling operators who will now be able to compete with Danish gambling sites on equal terms. Many Danish operators are opposed to the new regulations fearing bankruptcy once the large foreign conglomerates enter the market.
a histoRy lesson The history of online gaming in Denmark began when Danske Spil became one of the first state operators to offer lottery and sports betting games online. At the time this prohibited outside companies from freely competing in the Danish gaming market and for the last decade Denmark has been in a battle against the EU over free trade agreement violations.
The Danes have for years skirted around the monopoly situation and it is estimated that the Danes spent around DKK350m at foreign online casino sites whilst there are said to be
around 5,000 compulsive gamblers in Denmark.
Danske Spil introduced online gaming back in 2003 and began to offer mainly an electronic version of its offline games such as the scratch cards games. It has now since split the company into three areas – one company to deal with products aimed at the new market such as casino games, sports betting and online poker. A second group will handle lottery, scratch games, horse racing and bingo which will remain under the control of the country’s monopoly and a third division will focus on managing the 5,000 VLTs owned by Danske Spil.
Party Gaming has signed a five year agreement with Danske Spil to provide online poker and
danske spil intRoduced
online GaminG Back in 2003,
offeRinG mainly electRonic
veRsions of its offline Games.
casino games. Danske Spil currently has over 500,000 registered customers and reported a turnover of €1.47bn in 2008.
The company was founded back in 1948 when the special Danish Pools Act was finally passed by Parliament and as a result Danske Tipstjeneste A/S was founded - Denmark’s state owned pool agency.
For a long while the company only operated the Tips 1x2 soccer pools until legislative changes enabled the company to offer other games such as number games, sports games, instant scratch card games, horse and greyhound racing and gaming slot machines.
Today Danske Spil’s shareholders include the Danish state (80%), Danish Sports Federation (10%) and the Danish Gymnastics and Sports Association (10%) and the company comprises of Danske Spil A/S and subsidiary Dansk Automat Spil A/S.
In 1989 Danske Spil launched the Danish Lotto and turnover for this game reached DKK12m during the first week and today remains the company’s largest game. Then in 1990 Online Betting was introduced and in 1992 Quick, the first scratch card game was born. This was followed by many other lotto, keno and number games. Today Danske Spil’s games are sold via some 3,800 retailers in Denmark, Greenland and the Faroe Islands.
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