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Danish Gaming Authority Releases In-depth Illegal Gambling Report
By Shane Addinall Apr 21, 2021 LegalityThe Danish Gaming Authority worked with VIVE to create a report on their approach to gaming and gambling, illegal casino and skin betting sites, international cooperation with other regulators and how they define if a game is targeting Denmark.The Danish Gaming Authority worked with VIVE (The National Research and Analysis Center for Welfare) to address various areas of concern including the potential correlation between video games and casino gambling, plus illegal gambling and how to address it.
They recently made the report available to the public, we have summarised the most salient points for you here:
Where Is the Line?
Denmark, unlike many of its peers, has taken a firm stance against illegal gambling that includes games of chance – be they for money or for digital items such as skins for video games.
Their legislation determines games that fall under the rule of the Danish Gaming Act as those that:
- Are offered in Danish.
- Allow deposits or withdrawals in Danish krone.
- Use deposit and withdrawal methods unique to Denmark.
- Offer Danish customer service.
- Are designed to specifically attract Danish people (themes, celebrities, popular media etc).
- Use the Steam gaming service (relates specifically to skin gambling).
The Danish government has also been one of the few gaming regulators to ban loot boxes in video games because of their similarities to casino gambling and the prevalence of gambling adjacent triggers in loot boxes.
Taking Action from 2012 to 2019
January 2012 saw the partial liberalisation of the Danish gambling market. From that time the Gaming Authority has been actively addressing the issue of unlicensed gambling sites, often acquiring court injunctions to fulfil their mandate.
- 2012 – The Gaming Authority successfully applied to the court to block 20 illegal websites.
- 2014 – The Authority worked with Danish Tax Agency to install enhanced anti-fraud processes. An additional 5 illegal websites were blocked.
- 2016 – The Authority found that only 2 websites offered illegal gambling, however, it did find that nearly thirty sites offered information on gambling in Denmark which was incorrect.
- 2017 – The Gaming Authority took legal action against 6 skin betting websites. Where real money was being bet to win skins for characters and guns in video games.
- 2018 – This was another big year with a resurgence in illegal gambling sites that saw the Authority obtain court orders to block 18 websites.
- 2019 – The Gaming Authority intensified their investigations into the parallels between gaming and gambling. An additional 25 illegal gambling sites were blocked this year.
Overall, the Gaming Authority is positive that the number of websites offering illegal games of chance is on the decline, despite some spikes in sites that transgress the regulatory framework.
Persisting Through 2020
In 2020 the Gaming Authority and Danish Tax Agency worked on developing an even more in-depth series of anti-fraud searches to allow them to find even more websites that offer illegal casino games and those that host backdoor links to sites offering illegal gambling to Danes.
The new protocols highlighted a total of 1317 websites that transgressed the regulators requirements, with the next largest report having been only 742 in 2018 proving the efficacy of the new search parameters.
A total of 16 illegal sites were submitted to the courts of legal action, of these nine have already been shut down, with the balance expected to be actioned in 2021.
Behind Closed Doors
The Danish Gaming Authority has noted the increase in pub lotteries in 2020. These illegal lotteries have two forms, the first is where the pub goer purchases a scratch card where the prize is beer at the pub. This is known as an “island scraper” lottery.
The second is more commonplace, where the pub goer purchases several numbers with an illegal draw being held at specific times where winners claim a portion of the pool which can range from DKK 500 up to DKK 5000.
While playing slot machines in pubs and restaurants has become a more common practice around the world, and generally has solid regulation and controls in place, there was also a notable increase in illegal slot machines and betting terminals in public venues. The Authority has taken legal action against 27 such gaming venues in 2020, with more expected during 2021.
Positive Cooperation
One of the positives that has come out of the recent lockdowns has been the increase in international cooperation between gambling authorities.
The Gaming Authority specifically highlighted working on international projects addressing illegal gambling and safer gambling, plus the increase in the number of virtual seminars and joint research projects.
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