2021 has shown a great potential of the Danish iGaming market, with numerous European companies wanting to explore its prospects due to the significant growth of the jurisdiction.
While already operating in the Swedish market, Soft2Bet platform provider and operator group are among the companies to enter the Danish market as well. And with more brands trying to do the same, Soft2Bet's Head of Country Managers, Peter Christian Noer, has conversed with EGR and shared more about this regulated territory and how it is likely to improve.
Soft2Bet has been eyeing the Danish market for some time now, singling it out as a potential market to launch into by Peter Noer himself. His assignment in 2020 has helped the company grow across many other markets, while arrangements for joining the Danish market were well-afoot.
“After establishing ourselves in Sweden at the beginning of 2020, this was the logical next step, with obvious resemblances between the two territories. Operating in the Swedish iGaming scene delivered plenty of understandings, encouraging us to set up our approach for launching into the Danish market.”
Ten years ago, Denmark was one of the first European markets to establish a transparent, regulated market with multiple operators applying and being handed over licenses in late 2011. The Danish market is residence to IT-literate people that are open-minded to advanced technology and are accustomed to how contemporary products can allow the market to expand. This blend has suggested that the Danish iGaming market has witnessed steady growth since 2012.
Commercial licenses for casino, poker, and sports betting have been available ever since the market’s re-regulation. However, it went on until 2018 for those licenses to be made available for horse and greyhound race betting and bingo. The Danish market is controlled by The Danish Gambling Authority “one of the strictest,” stated Noer, “with all operators instructed to adhere to all demands.”
With such a thriving market, the customer safety topic is typically a concern. The Danish Gambling Act initiated the ROFUS database, a register where vulnerable players can self-exclude across all licensed websites all at once. Switches to sales promotions, covering maximum amounts, providing customers at least 60 days to complete a promotion, and restricting wagering requirements to x10, which have been all set to look after the players. No offer can be tailored to an individual but must be made available to at least 100 players.
Soft2Bet provides a useful understanding of the sphere, with Noer pointing out that the licensing procedure can be separated into two parts; financial/legal and technical. He noted: ''The legal/financial phase deals with what structure is ready and why the business is entitled to penetrate the market, whereas the technical phase establishes online websites that are put into operation are incorporated both so that the regulator can precisely access data and to assure, that the operator has all the called for player protection and verification policies ongoing. Once these requirements are fulfilled, operating within the vibrant Danish market can start.''
“The Danish iGaming market is dynamic; only the latest revisions to charitable lotteries, match-fixing prevention, and the DGA’s enforcement efforts were issued. In 2021, the gambling tax increased from 20% to 28% of the GGR, which surely doesn’t encourage recent newcomers to the market. Nevertheless, by staying up to date with government specifications and acknowledging the shifts when they take place, operators can modify their policies and procedures, and conclusively to conform to the market needs to secure profitability.
”For operators wanting to begin this procedure, Peter suggests assistance from third parties, such as legal experts with practice in the application process, besides providers that present creating databases and have access to NemID/MitID authentication. He underlined that the Danish Gambling Authority administers valuable supervision along the road to assure that all principles and evaluation results are met.
“This degree of documentation and the sophistication of technical integrations can be difficult, but it’s necessary to recognize that this is performed to assure that only competent organizations are authorized to penetrate the market.
”Stringent regulations like these may look too challenging, but the advantage of operating in a disciplined market is that it invests the customer with a degree of trust. “It also inspires more companies to the market, with a more significant number of top-notch operators, who themselves will only work in regulated territories, recognizing that market in higher regard,’ he said.
The most recent statistics from the DGA established Danish players in 2021 devoted the majority of their time to online casinos, lotteries in second place, and brick-and-mortar casinos, considering the smallest value of spending. Data from the DGA proceed to emphasize the power of the online space in Denmark. GGR for iGaming has been on the upswing, increasing from 31% of the total gambling market in 2012 to 59% in 2020.
The famous iGaming market is extremely appealing to online gambling brands, Noer confirms.
“The Danes are fairly conventional, with both online casino and sports betting. They relish a broad array of online casino games, but one essential element is that live casino games have become progressively attractive as a complement to popular online slots. That is perhaps something introduced during the pandemic, as people tested online products more. From a product standpoint, it calls for some unique, inventive elements to capture the attention, but I believe we have that.
”Despite this traditionalism, it is vital to appreciate Scandinavia’s digital-savvy population. “Identifying new ways to gamify products and continually optimize for smartphone use will be essential to improving the customer experience,” he added.
With the Danish market possessing such a powerful iGaming market, it is more than adequate to appeal to a broad array of suppliers and operators. Noer continues: “Basically, it’s the product quality, user-friendliness, agility, and convenience that prevails in the market–and I’m convinced that we have a highly stable platform that can provide this for us in the Danish market as well.”