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Danish Gambling Industry Reports 196% Growth
By Shane Addinall Jul 07, 2022 IndustryWith society returning to a state of normal and land-based casinos open in full swing, Danish gamblers show vigorous support for their familiar favourites. Balance is on the horizon, although online gambling revenues experienced further losses.Denmark’s gambling industry reports continuous improvement in land-based casino revenues as the country recovers from a pandemic-driven slump. Although online platforms experienced a drop in revenues, brick-and-mortar casinos in the country experienced growth of nearly 200%.
The Danish Gambling Authority (DGA) published Gross Gambling Revenue (GGR) figures for May, and earlier reports show marked growth for Q1. With an overall 20% increase in the same period for 2021, Denmark’s gambling industry had a successful first quarter, and this continued into Q2.
Continuous Support for Land-based Casinos
The Danish regulator, Spillemyndigheden, released the newest figures for the gambling industry, and results are promising for most divisions. Consistent year-on-year growth for land-based casinos boosted the industry as the segment generated DKK 32 million during May. This 196% increase from the previous year proves the continuous recovery of the Danish casinos following extensive closures and restrictions during the Covid-19 pandemic.
In line with the continuous support from patrons who prefer physical gambling facilities, gaming machines experienced a 97% rise in turnover, producing DKK 108 million in May. However, both segments experienced a slight drop in revenues from April when revenues reached DKK 35m for casinos and DKK110 for gaming machines; growth patterns remain consistent compared to 2021.
Spillemyndigheden reported on Denmark’s Q1 2022 statistics for the gambling industry. GGR growth of DKK 226 million amounts to a 20% year-on-year increase for the market. The total GGR of DKK 1.5 billion for Q1 includes betting, online casinos, gaming machines, and land-based casinos. All Danish land-based facilities were closed during Q1 in 2021.
Remote Gambling Slump
While the Danish government prohibited land-based casinos and betting services from trading during parts of 2021, online gambling platforms experienced a rise in patron support last year. Following the lockdown lifts, gamblers in Denmark proved many theories about online gambling wrong. Although some argue that the remote industry cannibalises land-based casinos, Danish gamblers returned to their favourite brick-and-mortar facilities.
The DGA reports a 0.4% drop in revenues for online gambling in May. GGR for online casinos amounted to DKK 246 million in the second month of Q2, and although it is slightly lower than May 2021, it is an improvement on April’s revenue slump of -16.6%. Revenues for the remote betting segments continue to fluctuate in 2022 as consumers return to land-based casinos, but reports show signs of gradual balance.
Remote gambling has experienced rapid growth since the country partially legalised it in 2012, and the pandemic closures forced the hand of gamblers who prefer brick-and-mortar casinos. Online verticals experienced a DKK 40 million drop in GGR for Q1 2022 in comparison with Q1 2021, which equates to a 6.2% drop in revenue.
Finding the Balance
Many consumers still prefer their familiar land-based gambling spots. However, most citizens still work toward finding a balance in their lives following pandemic challenges. While the consumer market works toward normalcy once more, Denmark’s gambling industry will follow with an equilibrium.
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