Denmark's Online Poker Market in Decline

Published August 13, 2014 by Lee R

Denmark's Online Poker Market in Decline

Denmark is not immune to the recent trend of decline in the European online poker market.

Originally thought to be a beacon for national gaming legislation and regulation, the Denmark market has actually declined for the second year in a row.

Second Quarter 2014 Figures Down

Second quarter figures from 2014 released by Danish gambling authority Spillemyndigheden revealed a 20 percent decline from the same period in 2013.

Online poker revenues dropped from Kr. 50 million ($8,982,789) registered in second quarter 2013 to AKr. 40 million ($7,186,231) for the 2014 second quarter. 2013 figures already represented a drop from revenues of Kr. 55 million ($9,881,067) in 2012.

These projections have resulted in a further yearly revenue estimate from Spillemyndigheden of Kr. 180 million ($32,338,040) by year's end, a 7.7 percent decrease from 2013 and an 18.2 percent decrease from 2012.

General Casino Games Still Strong

Despite the online setbacks, general casino games remained fairly strong in Denmark. General casino gambling revenues rose 12.5 percent from Kr. 240 million ($43,117,387) in 2013 to Kr. 270 million ($48,507,060) in 2014.

The World Cup also provided a nice boost to Denmark's betting market, with second quarter betting revenues seeing the highest volumes since the market was regulated.

The FIFA event held every four years spurred the generation of Danish betting market revenues revenues of Kr. 445 million ($79,946,822), representing a robust 33 percent increase from the same quarter 2013's Kr. 335 million ($60,184,686).

Regulatory Pioneer

Part of the original appeal of the Danish market undoubtedly stems from the strong system in place for cracking down on illegal unregulated gambling sites, using domestic providers to block illegitimate sites. For example, Danish Internet service provider Three was recently instructed by Spillemyndigheden to block five suspected sites, identified as 7red.com, 7red.dk, quasargaming.com, wintrillions.com and trillonario.com.

Not only were these sites operating without licenses from the Danish government, but they had ignored previous warnings to cease operations or be locked out of the market. Earlier similar moves by the Spillemyndigheden include the 2012 blocks imposed on 12 unlicensed gambling companies serving Danish customers including Betclic Everest subsidiary Bet-At-Home and group of Playtech-powered sites including Titan Poker. The Danish government was one of the first to impose systemised crackdowns on unregulated providers, but that has not sparked improved performance in the Danish regulated market as of yet, and at this juncture the Danish market does not seem immune to recent declines in online gaming across Europe's regulated markets.

Mentioned in this article

See also

Denmark Sees Sudden Declines in Q3

Denmark Market Grows, while Land-Based Gaming Recedes

French Online Gambling Future Uncertain

Record Revenues for Denmark in Q3 Promise Robust Times Ahead

Denmark Grows in its Own Way in World Cup Season


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