Welcome to the April 2017 edition of the iGaming Business Market Monitor, where we continue to delve into UK-related issues and for the first time look at the regulated market of Denmark.
Our focus on Denmark is timely as it coincides with our inaugural Nordic Affiliate Conference and follows the announcement that Sweden will set in motion the legislative wheels to establish a regulatory framework for its igaming sector.
What is striking about the detail of Sweden’s potential regulation is how reasonable the proposed tax rate will be: 18% of gross gaming revenues. This chimes with Denmark’s 20% tax rate and stands in contrast to other regulated (or soon to be) markets.
This does not mean all is perfect in Denmark’s igaming sector, but the clear conclusion for countries looking at regulating their sector is that a business-friendly regulatory approach yields good results for all parties.
This is reflected in the Danish Online Gambling Association’s survey from 2015. It found that only 6% (out of 4,000 respondents) used unregulated betting sites. However, some 23% used unlicensed casino sites and 27% went offshore for poker, indicating that the country is missing some significant VIP action, a trend that is likely to be replicated in other regulated markets.
The UK meanwhile has other highly pressing issues, Brexit’s potential impact on Gibraltar being the most obvious. There have also been mixed results for operators and the topic of M&A – real, failed or potential; has clouded the picture further. With regulatory issues hanging over the market, a lack of major sporting event in the Summer and unclear economic conditions on the horizon, we lay the issues out but it is difficult to forecast with any certainty how the UK market will evolve.
We hope you find this Market Monitor informative and as usual are always open to your feedback and comments.
The iGaming Business Market Monitor is your quarterly series of reports that collates the latest data for market size and market shares across a number of major countries in Europe and further afield.
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