Part 1 : Market size and growth
Chart 3 : Monthly turnover channel percentages 2017 100
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Mobile Internet Land-based
Source : Danish Gambling Authority
close to the average at 18 % ( see Table 3 ).
The quarterly data releases From the quarterly releases issued by Spillemyndigheden we can see that growth has been consistent across both sports betting ( online and land-based combined ) and casino with only slight variations seasonal variations ( see Charts 2 and 3 ).
The only outlier here is sports betting in the fourth quarter of 2017 , which leapt by nearly 24 % to DKK712m compared to an average growth figure per quarter over the past three years of 5.4 %. It remains to be seen to what degree this headline number falls back in Q1 of 2018 .
Marginal benefit The fourth quarter rise is explained by widening margins in the last three months of 2017 . According to the regulator ’ s report , sportsbetting operators overall – including the land-based sector – enjoyed margins of 13.8 %, up from 10.9 % in the previous quarter and the same average figure for the year .
The Spillemyndigheden authors pointed out this margin performance was “ unusual ”, highlighting that it was also the highest operator margin in the last three years . Sports-betting GGR for the fourth quarter of DKK712.4 was some DKK162m higher than
Growth has been consistent across both sports betting and casino with only slight seasonal variations the corresponding period in 2016 despite stakes being DKK172m lower at DKK5.16bn .
The report notes that the buoyant operator margins in the fourth quarter – and specifically December 2017 where margins hit 15.3 % – were also visible across Europe . They might not make the point , but it is an obvious commentary that though each individual sports-betting market will have differing regulations and other operational quirks , the basic sports product – in this case , favourable football results – are a continentwide phenomenon .
The report points out this margin anomaly affected the figures ; if a margin of 10.9 % were applicable in the fourth quarter , total GGR would have been DKK206.6m lower or DKK505.8m . When the 65.2 % of online is applied , it would leave the online-only fourth quarter figure at circa DKK330m , down from the circa DKK383m in the third quarter . In terms of sports betting by
8 Denmark : Insights and data on Europe ’ s pioneer model for igaming regulation