Danish Regulator Gains Enhanced Powers via Legislative Update

The Danish Parliament has adopted significant amendments to the Act on Gambling aimed at bolstering the regulatory powers and effectiveness of the Danish Gambling Authority (DGA). The changes, effective from 1 July 2024, mark a substantial shift in the authority’s ability to combat illegal activities and enhance transparency within the gambling sector.

A Powerful Regulator Will Benefit the Industry

The DGA now possesses improved sanction options, including the authority to issue orders and sanctions directly. Previously, the DGA could only warn license holders or refer cases to the police. If a license holder breaches the gambling legislation under the new regulations, the DGA can issue an order or a sanction. Failure to comply could result in police involvement or license revocation.

The amendment also introduces a new requirement for gaming suppliers to obtain a license. This license can be sanctioned or revoked if the supplier violates gambling legislation. This provision aims to tighten regulatory control over all entities involved in the gambling supply chain, ensuring suppliers comply with Danish laws and do not engage with black market entities.

According to the updated legislation, the DGA will enjoy expanded data processing authority, enabling more comprehensive gambling data analysis. This enhanced capability will allow the DGA to identify patterns and irregularities more effectively, supporting its enforcement and regulatory functions and helping it make better-informed solutions.

Denmark Is Not Done with Its Gambling Updates

The changes are poised to reinvigorate Denmark’s gambling industry. By increasing regulatory oversight and enhancing the DGA’s enforcement capabilities, the amendments aim to create a safer and more transparent gambling environment. A change in the fee structure for gaming machines should create a fairer and more proportionate fee system that reflects the scale of operations of each gambling operator.

While these updates mark a vital milestone in Denmark’s regulatory journey, the country is already planning another set of updates. The Danish Ministry of Taxation is considering new rules regarding land-based bingo and charity lotteries, bringing them in line with the rest of the sector. After consultations, these new rules should come into effect on 1 January 2025.

The DGA’s increased powers should lead to more effective enforcement and improved compliance among gambling operators. Moreover, the regulator will publish certain sanctions and court rulings on its website for five years, ensuring greater transparency and accountability. These updates mark a substantial milestone for the Danish gambling sector, focusing on protecting consumers and maintaining the market’s integrity.