Morten, what are the main challenges when it comes to fighting the black market in Denmark?
One of the key issues we observe is that Danish regulations have not kept pace with market trends. As a result, many of the games that are currently popular among players—such as crash games, virtual sports betting, skin betting, and game shows—are not legally available through licensed operators. When players cannot access these games through regulated channels, they turn to unlicensed operators instead, which poses a significant challenge for the market.
Te requirement for B2B suppliers to be licensed in Denmark went live January 1 - what effect on the grey/black market do you think this change will have?
I hope and expect that the new B2B regime will have an impact. With the license comes the responsibility to ensure that your games are not
Are banks and PSPs operating in Denmark about to be subject to stricter monitoring?
I do not believe there are immediate plans for this.
Do you think there will be an independent review of the regulatory framework in Denmark? Is this necessary?
Te Danish government is planning to review gambling legislation, and the Tax Minister, who oversees the gambling sector, has previously expressed a desire to impose restrictions on gambling advertising. We are currently awaiting concrete proposals from the government, which may be announced soon. Te gambling industry recognises that there are (too) many gambling advertisements on television. However, it is equally important that any new regulations still allow room for advertising products and brands to ensure a balanced market.
I hope and expect that the new B2B regime will have an impact. With the license comes the responsibility to ensure that your games are not illegally targeting the Danish market through corporate partners (B2Cs). Tat said, my impression was not
that many B2Bs were simultaneously supplying both licensed operators and black-market operators.
illegally targeting the Danish market through corporate partners (B2Cs). Tat said, my impression was not that many B2Bs were simultaneously supplying both licensed operators and black-market operators. Most operators engaging in illegal targeting of the Danish market had no affiliation with the B2Bs that are now licensed.
Reports suggest that unlicensed gambling sites have managed to process payments despite regulatory efforts to block them. Does Denmark need to reform its payment blocking policies or are current policies adequate?
Denmark does not have payment blocking measures in place, which creates a bit of a loophole. Initially, payment blocking was included in the regulation when the law was adopted in 2012. However, we believe that banks opposed the measures so strongly that the government ultimately decided to repeal them.
MORTEN RONDE Managing Partner Nordic Gambling
In your view, are Denmark’s enforcement measures in breach of EU laws on fair competition and free movement of financial services?
No, I do not see that. Could you be more specific about why you would think so?
Do you think operators will take legal action to protect their rights to conduct their business? And could they win?
At this time, I see no reason to pursue legal action. However, if the government imposes severe restrictions on the right to conduct business, legal action could certainly become a possibility.
To learn more about the Payments, Fraud & Compliance Gaming Leaders’ Summit, visit:
https://www.gaming-leaderssummit.com
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