Obtaining a license for the right to provide gambling services is the most important step for each gambling company, in part determining the attractiveness of the market as a whole. See Login Casino for details on licensing procedures in the UK and Denmark.
When selecting new markets for gaming operators, there are many factors to consider. First and foremost, companies pay attention to the size of tax rates for gambling companies, transparency and fairness of the legislative framework, as well as government loyalty to the industry. License terms are not the last in this list – requirements to candidates, size of financial guarantees, term of validity of permits, their cost. All the above conditions are usually developed by the country’s gaming regulator and are individual. Understanding the nuances of the process will save efforts and speed up the process of entering new markets.
Both of our chosen jurisdictions are characterized by strict legislative regulation, but the British license is rightly considered a kind of quality mark in the global gambling market. In this respect, Denmark is a relatively more loyal country, but this does not negate both the existence of strict restrictions and fairly strict penalties for violators.
In Denmark, social games and games that require special skills are not considered gambling, so they can be organized without a special permit. It also does not require a licence to organise games in which there is a winnings but no bets are made.
Licensing of gambling operators: Denmark
The issuing of licenses in Denmark is carried out by the Gambling Office (DGA). It should be taken into account that in the jurisdiction lottery operations are managed by a monopoly operator. Operators have the opportunity to obtain permission to conduct non-commercial lottery operations.
In general, licenses granted by a gambling operator in Denmark can be divided into two large types: permits for online and offline segments. The first type is divided into two more subspecies – licenses for online casino services and remote betting operations. One of the convenient features of licensing in Denmark is that, when obtaining a license for online betting, the operator automatically receives permission to open ground stations to receive sports betting.
For operators of terrestrial gambling establishments in Denmark also provides two types of licenses – permission to organize the work of gambling establishments and a limited permission, which allows you to manage the gaming rooms.
More extensive information on both segments of the Danish gambling market can be found in our separate material.
It should be noted that in order to carry out activities related to racing, dog racing and pigeon racing as well as online binning operations it is necessary to obtain a license for the online segment.
One of the interesting decisions of Denmark regarding the licensing of gambling operations is the possibility of obtaining a licence with limited income. According to it, the operator’s GGR may not exceed DKK 1 million (€134,000). There is also an option to obtain a limited revenue license. Under these conditions, the company’s turnover must not exceed DKK 5 million (€640 thousand) and the rate of return must not exceed 20%.
Online gambling licences are not limited in number. Subcontractors of gambling companies are not obliged to obtain a special permit.
The cost of applying for an online casino or remote betting licence is 279,500 kroons (€37,500). In the case of a combined online gambling licence, the fee increases to 391.3 thousand kroons (€52.5 thousand). The cost of a work permit with limited income is €7,500.
It should also be noted that in Denmark there is an annual fee for owning licenses, it is charged as a GGR tax.
Requirements to organizers include age – 21 years – and moral standards. The latter is claimed to have no criminal records of the final beneficiary of a gambling company, as well as data that would indicate the possibility of abuse of access to large sums of money. If the business owner does not reside in Denmark or one of the EU countries, a manager responsible for the gambling operator should be appointed on site. Members of the company’s board of directors must meet all the above requirements.
There is also a requirement for documentation to be submitted for consideration by the gambling regulator. In the case of a limited license, the package of documents must also be submitted in an abridged form.
It usually takes three to six months from the time the application is submitted to the time the permit is issued. The application fee, if rejected, is non-refundable.
With regard to the application for land-based casino services in Denmark, this option is not currently available. The number of licences is limited and they are all “in hand”. It will be possible to become part of the Danish land gaming market after the concession of one of the companies, unless the latter wishes to extend the permit.
The cost of the limited slot hall license is €86 per unit of gaming equipment.
The licence for online gambling services is issued for a period of four to five years, with a limited version for one year.
The licence for the terrestrial business segment is issued for a period of ten years, its limited version can be issued indefinitely.
Licensing of UK gambling operators
Operators are licensed by the UK Gambling Commission. Unlike Denmark in the UK, subcontractors of the gambling business are also obliged to undergo the licensing process.
The ground segment of the gambling business is subject to such terms as historical licenses. It is meant that a number of companies have “for centuries” the right to manage gaming facilities located in the resort area.
Therefore, a modern gambling company is more interested in the proposal for licensing online operators. The number of licenses, as in Denmark, is not limited here.
A peculiarity of licensing operators in the UK is that the law of the country provides for a license to operate software for gambling and “key personnel”. Accordingly, an online gambling operator needs to own three types of licenses – an operating license, a software certificate, and a set of personal licenses for key personnel.
In contrast to Denmark, the UK licensing rules do not provide for combined licenses combining the ability to manage gambling companies in online and offline segments.
There are no tenders for land casino construction. As a rule, operators who want to become part of the British market, buy casinos already built.
The operator, who plans to organize the work of the slot machines hall, ground receiving point for bets on sports or a hall for playing bingo, need to coordinate the initiative with local authorities.
The gaming regulator, taking into consideration the application, draws attention to several important factors – the honesty of the company, as well as solvency, which guarantees the payment of cash prizes by the user.
The gaming regulator also pays attention to some other nuances – for example, the experience of key personnel at the gambling market. It is mandatory for the controlling agency to familiarize itself with the business plan and management structures of the company.
If the operator submits comprehensive information in accordance with the established procedure and pays all necessary fees on time, the UK Gambling Commission is obliged to provide a decision on licensing after 16 weeks.
Application fees are calculated on the regulator’s website and the mechanism is complex but automated.
Operating licences are indefinite. Personal licenses are valid for five years, with the right to extend them.