What's gambling laws in Denmark?

Players’ protection is the primary concern of Danish gaming law. To accomplish players’ protection, Denmark seeks to establish a Government licensing monopoly in lottery and betting and enact strict rules for casino gambling. An example of Denmark’s Government intervention in the gambling market is the strict control and regulation on casinos. Denmark controls casino gambling by legally restricting the number of operators in the Danish casino market.

The new field of Internet gambling, which has raised much regulatory concern worldwide, is yet to be handled by specific Danish law. Notwithstanding, Internet gambling is not beyond the reach of current Danish law, as it is included by explanatory to Article 10 of The Games, Lotteries and Betting Act. This article informs readers on those Danish laws concerning lotteries, betting, and other forms of gambling and explores the issue of whether Internet gambling is legal under Danish laws.
Denmark has a well formulated legal system to address gambling activities. Applicable statutes include, inter alia, the Lottery Prohibition Act; the Act on Certain Games, Lotteries and Betting; and the Casino Act.

Internet gambling is included in an explanatory note to the Games, Lotteries and Betting Act (“GLBA”) but is not particularly covered by any statute. Denmark has yet to complete an official study on Internet gambling. Nonetheless, there are indications that Denmark may choose to enact separate legislation for regulating Internet gambling, thus increasing the proliferation of laws aiming to the protection of gamblers.

What provisions are there in Danish law concerning lotteries and betting?
The Lottery Prohibition Act and the Act on Certain Games, Lotteries and Betting constitute Denmark’s legal framework for lotteries and betting activities. Operators of lottery and betting games must also comply with the Danish Marketing Law Regulations and with the International Chamber of Commerce (ICC’s) international code on advertising

The Lottery Prohibition Act, Art.1 Sec.3., prohibits any lotteries organized in Denmark or abroad from targeting Danish residents. This prohibition may be overcome by obtaining a lottery authorization, which could be obtained by declaring a charitable cause of business and restricting clientele to a particular city or geographic locality.

Bingo, which is considered to be a different form of gambling in many European countries, is classified under the rubric of lottery gambling in Denmark and is regulated by the Lottery Prohibition Act.

In Denmark, under Article 1 of the Act on Certain Games, Lotteries and Betting- GLBA, the Danish Minister of Taxation is authorized to issue licenses to lottery operators provided that the later pay taxes to the Danish government. Article 2 of this Act states that the Minister of Taxation may only issue lottery licenses to a Denmark company set up as a limited liability company. The Danish government, along with Danish Sports Association, and the Danish Gymnastics and Sports Associations receive 80%, 10% and 10% of the share of capital from gaming activities, respectively.

GLBA, article 5, obligates the licensed company to distribute at least 45% of the stakes from the lottery as prize money and to submit a statement explaining the lottery's compliance with the provisions of the license to the Minister of Taxation before expiration of the license.

To avoid the increasing demand of games supplied by illegal dealers in Denmark, including those games offered via the Internet to Danish residents, the Danish Ministry of Taxation stresses that the licensee is under an obligation to supply attractive games.

Denmark’s licensees, in addition to the Lottery Prohibition Act and the Act on Certain Games, Lotteries and Betting, must also comply with Danish Marketing Law Regulations and with the International Chamber of Commerce (ICC’s) international code on advertising. At present, there are a number of self-regulation efforts to monitor the gambling services provided by licensees. These efforts include stipulating a minimum participation age of 16 years old for purchase of gambling services at the licensee's agents and a requirement that purchasers be at least 18 years old if they intend to purchase tickets via Trackside, gambling or via www.tips.dk and Lotto Service.

To what extent is Internet gambling legal in Denmark?
The Casino Act governs and regulates the casino market in Denmark. In the case of casino gambling, the Danish Government does not hold a monopoly. Rather, Art.1 Sec.1. of The Casino Act, authorizes the Danish Ministry of Justice to grant casino licenses to licensees who intend to responsibly operate casinos in Denmark. Denmark Government may grant conditional casino licenses when they deem appropriate. In Denmark, roulette, baccarat and blackjack are classified under the rubric of casino gambling, and thus, they are subject to the Casino Act provisions.

Based on an explanatory note on the Denmark’s Casino Act and some information provided by the Ministry of Justice and the Civil and Police Department on May 19, 2006, the Ministry of Justice intends to issue Casino licenses to only a few providers on an economic basis. The Ministry can also determine the maximum and minimum stakes permitted to be offered in casinos and may stipulate the age limit for entry into a casino. The casino operator must also maintain a registry of information about their customers and must follow regulations regarding the handling of gaming money.

The Danish Government does not officially recognize media games as gambling services. In the case of charity gambling, apart from reduced gambling hall’s tax, there is no specific legislation in Danish law.

What provisions in Danish law govern other forms of gambling?
The explanatory notes to Article 10 of The Games, Lotteries and Betting Act- GLBA- has been interpreted as relevant to Internet gambling activities in Denmark.

Art. 10 of GLBA gives a broad interpretation of the expression “provides” used in Section 1 of the same Act. As per this interpretation, the statutory restrictions are applicable to ‘all’ lotteries and betting that are directly targeted and available for Danish players, regardless of whether such lotteries and betting are offered by national or foreign operators.

Foreign gambling providers are also prohibited from directly or indirectly targeting Danish players through the use of marketing methods, choice of language, or selection of games. Games offered through the Internet are also considered to be targeted at Danish residents if the offer is directed at the Danish market in general. Examples of unlawful activity include providers who have a homepage written in Danish, providers who utilize Danish customer service agents or providers whose actions indicate that their gaming activities are directed at Danish players.

An additional interpretation set forth in the explanatory notes to Article 10 relates to the liability of foreign gaming providers who provide gaming services to Danish residents through the Internet. The expression “facilitates” in Section 1 is interpreted to include any activity that is intended to establish gaming activities in Denmark or to increase the participation of Danish residents in illegal gambling, regardless of whether such gambling is offered electronically or by any other means. Providing a link to a homepage of a game provider without a Danish license is expressly given as an example of such facilitation.

In this way, explanatory notes to the article 10 have extended the statutory prohibitions of Danish gambling law to Internet gambling.

Ira Piltz, Greenpoint Technologies