enmark state lottery and betting operator Danske Spil has at times been described as ‘the poster child’ of regulated iGaming markets since it transitioned to a regulated environment in 2012. And whereas some state operators have not adapted well to their own regulated environments, Danske Spil continues to grow, benefitting from the market’s dynamism and intense competition.
To place the company’s scale in context, Danske Spil recorded gross gaming revenues of almost USD 820m in 2017, while Denmark state regulator Spillemyndigheden’s latest figures show that industry-wide GGRs across sports, online and land-based casinos and gambling machines were USD 984m in 2017, a year-on-year increase of 6.9%, with betting contributing the highest GGR of all the verticals at USD 382m.
These figures illustrate the scale of the group’s achievements since 2012 and with the launch of Danske Spil’s latest brand Youbet, CEO Niels Erik Folmann talks about the Danish market, how it will evolve, and why Danske chose SBTech as its sports and casino platform provider.
"Danske Spil has executed a very strong strategy in terms of maintaining our market share since regulation in 2012, exceeding all market expectations. We are now taking the next step towards faster growth by adding a new brand to our portfolio, targeting players who demand a deep sports and casino offering. SBTech showed a profound understanding of our needs during the RFP process. The sportsbook and casino platform looks good, as does the roadmap for new features, meeting our need for a partner that will drive the success of our new brand through cooperation and co-creation," states Folmann.
"This is certainly true and I believe that other countries have been inspired by the “Danish model” when regulating their markets. Regulation here has been managed well and we have succeeded in cutting black and grey operators to a minimum. The Danish Gambling Authority has now issued 18 sports betting licenses and 41 casino licenses targeting 4.4 million adult Danes. We have experienced fierce competition right from the start and have welcomed it since it’s in the best interests of players and the industry as a whole."
"The Danish taxation model is based on gross profits, casino is highly regulated and poker has international player liquidity, helping operators, both private and state-owned, generate margins and compete on a level playing field. This clearly shows that the right regulations can help stimulate growth in a regulated market," adds the executive.
"There is no doubt that responsible gambling and control of aggressive bonus schemes are hot topics on the legislative agenda. With so many players in the field, bonus and marketing spends are very substantial, and that inevitably attracts political attention. On our side, we’re enhancing marketing efficiency through our data management platform, personalized UX and more intelligent loyalty programmes. With an even stronger portfolio and an open-minded approach to both regulation and innovation, we now cater to all market demands and look forward to gaining increased market share," concludes Folmann.