iGB E-zines iGB e-book Denmark | Page 4

Introduction: A confident market Introduction: A confident market A pragmatic and collaborative approach to regulation alongside the freedom to advertise has laid solid foundations for a thriving and sustainable market T here is every reason for operators within the regulated Danish market to be happy with progress since the market opened in 2012. In total the dot.dk market has grown 150% in the past six years with a compound annual growth rate of 20% until 2017, when it came in at 12% (see Table 1). In terms of market share, lottery monopoly Danske Spil remains dominant despite a downward drift in market share percentage since 2012. This report estimates Kindred/ Unibet and Bet365 to be its nearest competitors, followed by Betsson and LeoVegas (see Chart 1). Along with Mr Green, the latter represents the newest wave of market entrants. A model regime As it stands, the licensed operators would appear to be happy with the direction of travel evident in the Danish market. It would certainly appear to validate claims made by proponents of regulated regimes that a sensible tax policy (GGR at 20%) allied to the freedom to advertise more heavily will result in a successful and thriving regulated market. This is despite the market remaining relatively small, both on terms of revenues – at €448m in 2017 it is less than a tenth of the UK online market for instance – and number of licensees. The latter has risen lately, however, to 38 at the current count with new entrants Table 1: Denmark online betting and gaming (DKKm) Product: 2012 2013 2014 2015 2016 2017 Sports betting 453 614 905 1,174 1,413 1,530 Casino 650 795 891 1,144 1,415 1,675 Poker 220 195 167 165 148 132 Total 1,323 1,604 1,962 2,482 2,976 3,337 281 358 520 494 361 21.24 22.34 26.49 19.89 12.13 YoY growth YoY growth (%) Source: Danish Gambling Authority 4 Denmark: Insights and data on Europe’s pioneer model for igaming regulation