Danish channelisation rate exceeds 90% as online casino GGR doubles in 10 years since launch

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Since the launch of its regulated market in 2012, the proportion of gambling taking place with licensed operators in Denmark has grown to over 90%, according to new data from the Danish Gambling Authority (DGA).

“One of the most important reasons for the partial liberalisation of the Danish gaming market 10 years ago was that the Danes wanted to play on a wider range of games, and therefore demanded games from private game providers who offered online games,” said Anders Dorph, director of the Gambling Authority. 

“These providers were not covered by Danish regulations and therefore did not pay gambling tax to the state. It also meant that they did not have to live up to the Danish rules for consumer protection and responsible gambling.”

Prior to opening the market, the channelisation rate in Denmark was just 40%, according to the DGA. That figure has risen steadily over the past 10 years, it added, reaching more than 90% in 2021. At that time, the Danish market boasted a total of 57 gambling licensees.

DGA director Anders Dorph: “We are proud that Denmark is one of the countries with the highest proportion of online games with licensed providers. In Europe, we have been surpassed by only a few countries.”

The channelisation rate “clearly shows that the mission has been successful”, said Dorph. 

“At the Gambling Authority, we are very happy that Danes prefer gambling sites with a Danish licence. We are proud that Denmark is one of the countries with the highest proportion of online games with licensed providers. In Europe, we have been surpassed by only a few countries.”

During the same period, the size of the overall gambling market has remained fairly steady as it appears a transfer of revenue has shifted from the land-based sector to online.

The market was worth around DKK9bn in 2011 and is now worth DKK10.3bn, while the average annual gambling spend of Danes has increased from DKK2,060 to DKK2,210.

That growth has been relatively modest in spite of certain sectors showing a significant increase. For example, online casino accounted for DKK1.6bn of the market in 2012 but more than doubled by 2021 to DKK3.3bn.

Sports betting revenue grew by 53% over the same period, while the land-based slot machine sector saw revenue fall by around 59%.

About the author

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Conor Mulheir

Conor entered the gaming industry in 2018 producing high-level live event content for audiences in London, Amsterdam and São Paulo. From 2020, he went on to report news and commission exclusive content for various gaming media brands before joining iGaming NEXT as editor in January 2022.

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