Denmark’s gambling industry is currently navigating a challenging landscape due to the introduction of Spilpakken 1, a suite of stringent regulations affecting advertising and promotional activities. These new measures, which include a whistle-to-whistle ban on betting ads during live sports, tighter controls on outdoor advertising, and restrictions on free-to-play bonuses, have sparked widespread concern among operators and industry leaders.
Morten Rønde, director of the Danish trade body Spillebranchen and managing partner at Nordic Legal, expressed his views on the immediate repercussions, describing the situation as a “shell shock” for the sector. For over a decade, Denmark has been held up as a model of balanced gambling regulation, striking a fine line between consumer protection and maintaining a competitive market. However, this balance is now under scrutiny.
In August, Denmark reported a gambling revenue of DKK 714 million, marking both a yearly and monthly increase. The sports betting and iGaming sectors exhibited significant growth, reinforcing the notion that Denmark had successfully balanced consumer protection with pragmatic regulatory compliance. Rønde highlighted the importance of this balance, noting that the Danish Gambling Authority (DGA) maintained a cooperative relationship with operators, fostering trust through open communication and personal engagement.
The recent shift in Denmark’s regulatory landscape is attributed to the government’s desire to curb what Minister for Taxation, Ane Halsboe-Jørgensen, described as an industry that has “taken up too much space.” The new regulations aim to prevent entertainment from evolving into addiction, with a particular focus on protecting children and young people from excessive exposure to gambling advertisements. According to government data, nearly 500,000 Danish adults experienced some level of gambling-related issues in 2021, a number that has doubled since 2016.
Public debate around gambling addiction is intensifying, fuelled by media stories and political pressure. Rønde argues that the regulatory measures are not grounded in robust evidence. Despite acknowledging an increase in gambling addiction, he points out that the data is based on a three-year-old study with inconclusive results. He contends that the government’s actions are driven by public sentiment rather than empirical evidence, emphasizing the need for a balanced approach rather than drastic measures.
The potential consequences of these new regulations include a decrease in operators’ ability to advertise and compete effectively. Rønde warns that limiting advertising options could push consumers towards unregulated markets, exacerbating the very issues the regulations aim to address. He stresses that advertising is one of the few advantages licensed operators have in Denmark, and further restrictions could lead to market leakage and increased black market activity.
The new rules, supported by a broad coalition of political parties, include a prohibition on betting advertising during live sports, restrictions on outdoor ads near schools, and new limitations on bonuses. These measures could significantly alter the advertising landscape in Denmark’s major cities. Rønde notes that while a complete advertising ban was considered, the current outcome still poses significant challenges for the industry.
Countries like Italy and the Netherlands, which have implemented similar bans, have experienced a surge in illegal gambling offerings. Rønde warns that Denmark could follow a similar path, compromising its high channelisation rate, which has already fallen from around 90% in 2022 to 72%, as indicated by H2 Gambling Capital data.
The economic impact of these regulations is yet to be fully understood, but Rønde anticipates significant repercussions. Major broadcasters such as TV2, which holds the rights to broadcast Danish Superliga matches, expect a substantial drop in revenue due to the ad ban. Previous government estimates suggest that the new regulations could result in a loss of hundreds of millions in Danish Kroner in tax revenue.
In Sweden, the gambling trade body BOS is closely monitoring the developments in Denmark. Secretary General Gustaf Hoffstedt voiced concerns that Denmark’s regulatory changes could undermine its reputation as a regulatory model for Europe. He emphasized the importance of maintaining an attractive legal market to prevent consumers from turning to unlicensed operators, which would negate efforts to enhance consumer protection.
The tightening of regulations without preserving a viable market risks unraveling years of progress in channelisation and consumer protection. As Denmark prepares to implement these measures in January 2027, the industry anxiously awaits to see if it can maintain its regulatory balance or if it will become another example of well-intentioned but misguided policy-making.
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