Online Gambling in Denmark Beats the Odds

Upon closer examination of the recent report by Spillemyndigheden, we find that the headline, "Danes spent less money on gambling", may initially suggest a market in decline. However, a deeper dive into the data reveals a more nuanced picture.

Join us as we look at the various gambling verticals that are operational in Denmark, how they are performing year-on-year at a gross gaming revenue level, and the short-term impact of a restrictive new gambling law.

Is the Danish Gambling Market Losing Ground?

The alarmist headline about the poor state of Denmark's gambling sector, namely the 1.7% decrease in player deposits in 2023 compared to 2022, can be misleading. It's crucial to consider the various factors that influence player deposits, many of which are unrelated to the players' interest in games of chance or other gambling-related activities.

One of the most damaging market influences was the decision by the Danish government to enforce a mandatory Player ID check whenever someone wanted to play a game of chance or place a bet at a physical gambling venue.

This law came into effect on 1 October 2023, and the negative impact of the decision was immediately telling, with land-based casino gaming revenues dropping 25% and in-person sports betting plummeting more than 72%.

The decline in physical gambling proved to be a short-lived kneejerk reaction to a new ruling, with both sectors recovering the very next month.

 What Does Danish Gross Gaming Revenue Reveal?

While deposits are an interesting metric, when it comes to a gambling jurisdiction's health, gaming revenue (GGR) tells a more impactful story.

We delved into the annualised reporting provided by the Danish Gaming Authority (DGA) to assess the market's performance in recent years and whether it is on the rise post-pandemic.

It is clear to see the negative impact of the lockdowns on land-based gambling and sports-related betting, with 2020 into 2021 being abysmal years for that side of the market. However, looking at 2022 into 2023, it is clear that physical gambling revenues are beginning to show signs of life.

The only outlier here is betting. However, when you at least factor in the DKK 133M lost in November due to the Player ID requirement, the annual result would have been DKK 2313M, putting it on par with 2022.

 Danish Gamblers Do Love Online Casino Games

While land-based gambling has some work to do in drawing crowds back to its venues, the online casino space has shown solid growth over the 6+ years.

This result encompasses live dealer casinos, online slots, table games, scratch cards, and more, proving that Danes love the accessibility, scale, and ease of use offered by casinos that can be played as easily on a mobile phone as on a desktop computer.

The market dominance of online gambling in Denmark is clearly seen in the official 2023 breakdown of player usage, which shows that more than 45% of gambling activity centres around this burgeoning channel.

We must commend the DGA for supporting the licensed online casino business. They have been actively shutting down unlicensed operators who target their citizens. Not only does this ensure a safer gambling experience for the player, but it also bolsters the viability of the country's licenses and directs more funding to national coffers for important community-facing projects and government initiatives.