Danish Gambling Authority

Denmark may seem a small European country with a population of 5 million people, but in order to open a casino here, you still need the Danish Gambling Authority (DGA) license. You probably did not see many gambling websites that have this license, and this is normal: the DGA license has some heavy terms, and it is only effective in Denmark. According to the statistics, only 13% of the total population is interested in online gambling, so this makes the potential customer base very small, around 600.000 people. What Danish people love is lotteries: Nearly 43% of the population takes part in lotteries, and a DGA license is required for them too. So, in practice, only companies that are focused on lotteries get a Danish Gambling Authority license, and online casinos usually skip it due to the low customer base and heavy taxing conditions.

What Is the Danish Gambling Authority?

Danish Gambling Authority is a part of the government and regulates all kinds of gambling activities (online casinos included) in Denmark. It was established in 2012, so it is quite new. The license does not cover bingo and scratch card games, only the government can offer them. A DGA license can cover lotteries, brick-and-mortar casinos, sports betting, and online casino games. An online casino that owns an Alderney Gambling Commission license can automatically get a Danish Gambling Authority license too. However, due to the high tax rates and license fees, almost no casino does that.

A DGA license is valid for 5 years. Every 5 years, it needs to be renewed and there is a fee that needs to be paid annually. In this regard, 250.000 DKK (around 40.000 USD) is needed to make an application. The applicant must already have a company in Denmark. If the application is accepted, you can start accepting Danish players, but your servers must also be located in Denmark. In addition, there is an annual fee you need to pay. The figure changes according to the net income of the casino, but it can be as high as 1.500.000 DKK (around 240.000 USD).

That’s not all: You also need to pay taxes. There is a 28% tax for your company and a 20% additional tax based on your gaming profits. Basically, 48% of your annual winnings go to the government. Lastly, you cannot directly control the deposits of players. Danish Gambling Authority casinos must open a bank account that cannot be controlled by themselves (the government is the owner of the account) and player deposits go to that account. So, after the government takes its share from this account, the rest goes to the casino. Statistics show that the average income of Danish Gambling Authority casinos was 990 million DKK in 2013. Almost a half of this goes to the government. A very big part of this income is paid for license fees, and… Yeah, obtaining a DGA license may not be as profitable as you might think.

Why Choose the DGA?

Well, if you are a casino owner, there aren’t too many reasons to get a DGA license. The taxes and the terms of the license are too heavy, you don’t have access to the players’ deposits, and the potential customer base is too small. There are other online casino licenses out there that offer almost no taxes, a much bigger customer base, and more liberal terms. If you have 300.000 USD to spare, which is the overall cost of a Danish Gambling Authority license, you can use it to obtain a Malta (MGA) license, for example, and get much more in return. At the time of this review, there were less than 50 online casinos that owned a DGA license.

If you are a player, however, there are many reasons to choose a Danish Gambling Authority casino. This is probably the most secure license out there since it protects your deposits by not giving access to the casino. If the online casino goes bankrupt, for example, your money is still safe and secure. So, if you are a Danish gambler, a Danish Gambling Authority casino will offer you the most secure gambling experience you will ever get. In addition, you will be able to use local payment methods to make deposits and withdrawals.

Responsible Gaming and Player Protection with DGA

These are two different topics, so:

Player Protection
As mentioned above, the Danish Gambling Authority takes player complaints seriously and protects even their deposits. While sending money to a casino licensed by DGA, you are actually sending the funds to a government-controlled bank account, so your funds are literally 100% secure, even if the casino goes bankrupt. In addition, any Danish citizen who has a complaint can personally apply to the Danish Gambling Authority and meet with its members. The rulings of the DGA is final.

Responsible Gaming
Danish Gambling Authority has its own responsible gaming practices, called Register of Self-excluded Players (ROFUS). Any player who wishes can register his/her name to this list. Danish Gambling Authority casinos must keep track of this list and act according to its limitations. For example, if a player registered himself on this list and set his gambling limit as 3 hours per week, the casinos must take necessary precautions. This is actually another problem for the casinos because this list is managed by the government, not the casinos. If you are a player who is a member of multiple gambling sites, you can register on this list and expect all casinos to comply with your self-exclusions.