In April 2020, the Danish Gambling Authority (SPILLEMYNDIGHEDEN) reported that it had approached the court for the sixth time to block access to 16 online casinos that were accepting Danish players without getting a Danish gambling license. The Danish Gambling Authority has blocked a total of 74 unlicensed online casinos this way.
Before approaching the court, the SPILLEMYNDIGHEDEN had warned the unlicensed sites to cease operating in Denmark. Since the sites had ignored the SPILLEMYNDIGHEDEN’s warning, it had to approach the court to get an order to block them.
At that time, the SPILLEMYNDIGHEDEN stated that it aims to protect players from unlicensed online gambling sites and to enable licensed operators to run their business in an orderly manner. This makes it very important for the SPILLEMYNDIGHEDEN to crack down on illegal online gambling sites that offer gambling services without a Danish license.
Danish Gambling Authority’s Important Duty – Monitoring Unlicensed Gambling Activities
The SPILLEMYNDIGHEDEN performs many important tasks. One of its most important tasks is to monitor the activities of unlicensed gambling businesses in the country. The regulatory body searches for unlicensed gambling sites targeting Danish players, acts on its findings and protects Danish players. By doing so, it creates a lucrative market for those who comply with Denmark’s gambling laws.
Search Robots – that SPILLEMYNDIGHEDEN’s Biggest Weapon against Unlicensed Sites
The SPILLEMYNDIGHEDEN, in collaboration with the Danish Tax Administration’s Anti-fraud Unit, launches a search for unlicensed gambling activities within its jurisdiction. The Anti-fraud Unit has provided the SPILLEMYNDIGHEDEN a search robot, which it started using in 2012.
The Anti-fraud Unit has updated its search robot several times to make it all the more effective. As a result, the search robot presented the SPILLEMYNDIGHEDEN a list of around 1,100 online gambling websites that either operate in Denmark without a Danish gambling license or market unlicensed online casinos.
In addition to using the search robot, the SPILLEMYNDIGHEDEN also listens to players. It considers reports of player experiences at unlicensed online gambling sites. Also, it receives information about unlicensed sites from operators who have received a Danish gambling license.
SPILLEMYNDIGHEDEN’s Actions against Casinos without Danish license
Whenever the SPILLEMYNDIGHEDEN comes to know of an unlicensed online casino without Danish license offering its services to Danish players, it takes the following steps:
- It sends the owner-operator of the site an official warning, bringing to their notice that they are operating without a Danish license and thereby violating the Danish Gambling Act. The warning also contains an order to cease operating in Denmark or marketing their gambling services in Denmark immediately.
- Usually, unlicensed online casinos honour this official warning from the SPILLEMYNDIGHEDEN and immediately stop accepting Danish players. But some of them ignore the warning.
- If the site continues to violate Denmark’s gambling laws or fails to respond to the SPILLEMYNDIGHEDEN’s communication or if the SPILLEMYNDIGHEDEN is unable to find any contact details on the unlicensed website, it can request the ISPs to block access to that site.
- Denmark’s gambling laws give the SPILLEMYNDIGHEDEN powers to block only online gambling sites, not websites that promote unlicensed online gambling sites, such as affiliates or review sites.
- Some ISPs request the SPILLEMYNDIGHEDEN to obtain a court order to complete the blocking procedure. In this case, it may take the SPILLEMYNDIGHEDEN up to four months to effectively block access to an unlicensed website.
- Alternatively, the SPILLEMYNDIGHEDEN may submit a complaint to the police about the violation and let the police investigate the website further.
Other Ways to Curb Unlicensed Online Gambling
The SPILLEMYNDIGHEDEN also has some other ways to curb unlicensed online gambling, but they have their advantages and disadvantages.
- Payment Blocking: The regulatory body may request banks and payment processors across Denmark to block payments to and from unlicensed online gambling sites.
However, the SPILLEMYNDIGHEDEN cannot force international banks to block gambling-related transactions. Also, it cannot request international payment processing services such as PayPal to block payments. Moreover, blocking transactions between local banks and foreign banks is impossible.
- Ad Blocking: The SPILLEMYNDIGHEDEN may prohibit advertising of gambling products and services from unlicensed gambling sites. It sends petitions to various media requesting them to stop promoting or advertising unlicensed gambling sites. If the media does not respond favourably, the SPILLEMYNDIGHEDEN can complain to the police.
The Danish model has the following advantages:
- It has effectively created an attractive and competitive market for licensed operators and Danish players.
- It fully complies with EU laws as it cracks down on unlicensed gambling sites through domestic banks, media, and ISPs.
But there are a few disadvantages about the way the SPILLEMYNDIGHEDEN handles unlicensed gambling sites:
- It cannot block the unlicensed gambling sites. It can only block Danish players’ access to these sites.
- Danish players can easily overcome payment blocks and ISP blocks.
- The SPILLEMYNDIGHEDEN criminalizes domestic banks and ISPs even if they have nothing to do with unlicensed gambling sites.
Denmark Gambling Laws FAQ
Q1: It is legal to gamble in Denmark?
A: Yes. Denmark has legalized several gambling activities such as sports betting, charity lotteries, poker, gaming machines, and online casinos. You can play legally at any online or offline casino licensed in Denmark.
Q2: Who grants licenses to offer online casinos in Denmark?
A: The Danish Gambling Authority grants licenses to operators of gambling services. It is an executive body that is directly answerable to the Danish Ministry of Taxation.
Q3: I want to complain about illegal gambling activities in Denmark. What should I do?
A: If you want to complain about an unlicensed gambling site, contact the SPILLEMYNDIGHEDEN. The procedure to do so is available on its website.
Q4: How does the Danish Gambling Authority protect players from gambling harm?
A: The SPILLEMYNDIGHEDEN protects players from gambling harm through two major tools—ROFUS, which allows players to self-exclude from licensed gambling services and StopSpillet, which helps players overcome problem gambling.
Q5: How do I know that a gambling site is licensed in Denmark?
A: Check the footer of the gambling site for the SPILLEMYNDIGHEDEN logo or a license number.
