Key Moments:
- Denmark’s Spilpakken 1 reform package introduces significant new gambling restrictions
- Industry leaders have warned of increased risk of black market activity following ad bans
- TV2 expects advertising ban to cause annual losses of up to €12 million
Government Unveils Stricter Regulatory Approach
Denmark’s gambling sector is undergoing one of its most challenging periods, following the government’s introduction of the Spilpakken 1 reform package. These reforms, proposed as a means to address social concerns, have led to heightened restrictions, including a whistle-to-whistle ban on betting advertisements during live sports, tighter rules on outdoor advertising near educational institutions, and limitations on free-to-play bonuses.
Industry Voices Alarm Over Regulatory Shift
For years, Denmark was seen as having a balanced regulatory environment for gambling. However, industry figures now express serious concern that the new measures undermine this approach. Morten Rønde, director of Spillebranchen and managing partner at Nordic Legal, described the changes as transformative for the sector. He highlighted Denmark’s collaborative regulatory process by stating, “Each operator has two contact persons assigned. A legal contact and a technical contact. So that creates a more personal approach in dialogue with the regulator.”
Official Motivations and Industry Critique
The government has emphasized the reforms as vital for social protection. Tax Minister Ane Halsboe-Jørgensen argued that the changes are necessary to curb gambling addiction, referencing government data indicating that approximately half a million Danes experienced some degree of gambling problem in 2021, compared to half that number in 2016. Broad political support underpins the tougher rules, with Liberal Party member Jan E. Jørgensen noting satisfaction that the measures would better shield children from gambling-related exposure.
Industry stakeholders have argued the government is acting based on incomplete and outdated research. They have criticized the reliance on a three-year-old study, pointing instead to the overwhelming amount of advertising as the main problem: “people are just sick of all the gambling adverts, which we agree with – there are too many of them. They are overexposed in the market.”
Warnings of Black Market Growth
Stricter regulations have prompted warnings about a potential shift toward unlicensed operators. Morten Rønde argued that restricting advertisement options could undo the competitive advantage for licensed entities. He stated, “Advertising in Danish media is the only advantage that a licensed operator has. Because otherwise it’s just restrictions and taxation. When you are [no longer] allowed to advertise, you lose that competitive advantage.”
He referenced developments in Italy and the Netherlands, where similar restrictions have been linked to an increase in illegal gambling. He added, “It’s impossible to block unlicensed operators completely,” and highlighted that Denmark’s channelisation rate has already declined from 90% in 2022 to 72%, according to H2 Gambling Capital.
Economic Implications for Operators and Broadcasters
Local broadcasters and gambling operators have started to anticipate notable financial consequences. TV2, Denmark’s leading commercial broadcaster and Superliga partner, estimates that the ban on gambling ads could result in up to €12 million lost per year. Government estimates project tax revenue losses in the hundreds of millions of Danish kroner. Rønde further commented, “It will severely impact the market and the whole business of being in Denmark.”
| Stakeholder | Anticipated Impact |
|---|---|
| Licensed Operators | Rising risk of black market leakage and possible exits |
| TV2 (Broadcaster) | Up to €12 million in annual ad revenue losses |
| Government Tax Revenues | Losses in the hundreds of millions of DKK |
Regional Perspectives and Forward Outlook
Other European jurisdictions are also paying close attention to Denmark’s policy changes. Gustaf Hoffstedt, secretary general of BOS in Sweden, described the developments as “worrying,” referencing Denmark’s long-standing reputation for regulatory balance. Hoffstedt stated: “Denmark should pay more attention to how to create an attractive legal licensed market than to implement measures that will scare away more consumers. After all, that’s the number one consumer protection measure that you can take.” He further cautioned: “Yes, I’m afraid it will change – that Denmark is also choosing a path that in the long run may lead to them crawling in the mud, just as so many other European jurisdictions.”
With Denmark preparing to implement Spilpakken 1 in January 2027, the industry now faces profound uncertainty over whether its historically respected regulatory model can withstand the current overhaul or whether it will face increased challenges from unlicensed market participants.
- Author
Daniel Williams
