Danish Online Gambling Market Gaining Traction
A 10-year review of the online gambling market in Denmark has been deemed ‘successful’ by market regulators after being liberalised in 2012.
At a time when online gambling was really starting to take off, due to a number of reasons, such as the transition to mobile gambling, this witnessed explosive revenue growth as the average spend per customer continued to rise.
Denmark is one market that has really emerged from under the radar over the last couple of years, although the wider Scandinavian and Baltic market has continued to post impressive growth figures.
Wealth Increase in Denmark Linked to Growth
It has been noted that a significant increase in salaries for the Danish population has seen them acquire more wealth and disposable income, with this understood to be one of the primary factors for the widespread growth of the industry in the country.
“The average gambling spend was generally increasing up until 2018. In the following years, there was a slight fall in the average gambling spend, which can be attributed to COVID-19 measures which affected the markets for betting, gaming machines and land-based casinos.
In the same period, however, Danes have also become wealthier. The gambling spend therefore accounts for approximately the same share of the Danish economy today as before liberalisation.
Figures that have been released indicate that over the last decade, the collective spend in the online gambling market in the country has increased from DKK 1.6bn (Є187.89m) to DK 3.3bn (Є444.15m) - a sizeable jump considering that this is an emerging market and certainly one to watch.
Meanwhile, the value of the market has increased from DKK 9bn (Є1.2bn) to DKK 10.3bn (Є1.4bn), which represents a rise of just over 14 per cent.
This means that the average spend per Dane per year from 2012 has increased from DKK 2,060 (Є254.75) to just under DKK 2,210 (Є409.35) in 2021.
The statement continued: “In the same period, however, Danes have also become wealthier. Gambling spend therefore accounts for approximately the same share of the Danish economy today as before liberalisation.”
Meanwhile, Anders Dorph - director of the Danish Online Gaming Authority, revealed: “One of the most important reasons for the partial liberalisation of the Danish gambling market 10 years ago was that the Danes wanted to gamble on a wider range of games, and therefore demanded games from private gambling operators who offered online games,” commented Dorph.
“These providers were not subject to Danish regulations and therefore did not pay gambling taxes to the state. It also meant that they did not have to comply with the Danish rules on consumer protection and responsible gambling.”
Is Denmark One to Watch?
The Baltic region, in general, has witnessed considerable growth over the last few years - further east, the markets of Estonia and Latvia have reported encouraging figures, with more and more operators and software providers identifying this as a prime region to capitalise on.
However, this appears to be the trend for the wider European market in general, as the online gambling industry as a whole shows little signs of slowing down.
There are a number of heavyweight online gambling companies that operate in Denmark, most notably the Flutter Entertainment-owned subsidiary, Betfair, as well as Swedish-based Kindred Group’s Unibet and Mr Green, all of which are prominent and popular among Danish players.
Bet365, another major online gambling company, is arguably the flagship, and it will come as little surprise if more operators start to realise the potential. Denmark is certainly one iGaming market to keep an eye on.
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