Denmark Opens up Market for Online Gambling Operators
The approach taken towards online gambling is an often discussed topic on the political agenda, and differs widely from one country to the next. In Denmark the authorities decided to go for full legalization and regulation, and as of July 1 online gambling operators can obtain gambling licenses.
Online Gambling Monopolies
It is widely known that the lack of competition caused by monopolies are disastrous for the consumer, as prices stay artificially high and the customer doesn't get value for money.
Right2Bet explicitly measured the odds offered by European sports betting monopolies, and found out that gamblers were on average 20% worse off at a state-owned monopoly than at a private competitor.
Legal Online Gambling in Denmark
The Danish authorities already offered online gambling services as of January 2010 through the state-owned Danske Spil, which signed a licensing deal with gambling giant Party Gaming. As from the beginning of this month foreign gambling operators can apply for a Danish gambling license.
The gambling licenses go for €140,000 a piece and are subject to a few additional conditions. The gambling operator must have an office in Denmark, utilize a reporting system that is compliable with Danish tax law, and pay taxes of approximately 20% of gross revenues.
A Positive Example
The Danish developments should work as a positive example for the rest of Europe to follow. Online casino and poker operators that meet the rules can now offer their games in a legal and regulated way, and at the same time generate additional tax income. Up to now online bingo operators have been ruled out, and sports betting needs to be authorized separately.