Denmark sees decline in retail betting following new ID laws

Denmark has experienced a notable decline in retail betting following the implementation of new identification laws, designed to enhance player protection and address concerns related to unethical betting practices.

Effective from October 1, 2023, individuals wishing to place bets at kiosks or betting shops in Denmark were required to possess a Player ID issued by the respective operators.

This measure aimed to link the Player ID to the user’s betting account, significantly reducing the risk of underage gambling and fortifying efforts against money laundering and other unethical behaviors.

Moreover, the introduction of the Player ID system strategically excluded individuals enlisted in the self-exclusion register from participating in retail betting, further reinforcing responsible gaming practices.

Data released by Spillemyndigheden, the Danish Gambling Authority, revealed that prior to the enforcement of these changes, the distribution of betting activities across various platforms remained relatively stable throughout 2022 and 2023. Typically, mobile betting constituted around 60% of betting activity, with online casinos and land-based establishments accounting for 23% and 17%, respectively.

However, in the aftermath of the ID laws’ implementation in October 2023, the engagement in land-based betting sharply declined to a mere 8% over consecutive months. This substantial shift was accompanied by a notable 17% decrease in Gross Gaming Revenue (GGR), amounting to $26.2 million (€24 million) in October, compared to the same period in the preceding year.

Conversely, the online casino sector experienced an 8% surge in revenue, reaching $275.1 million (€251 million) in November, suggesting a noteworthy migration of betting activity from retail locations to online platforms.

In response to the observed trends, the Spillemyndigheden cautioned against definitive conclusions regarding the direct causality between the introduction of the Player ID system and the decline in land-based betting.

In the first two months after the introduction of the Player ID, the spending on the land-based betting market was lower compared to before the introduction of the Player ID. However, it is too early to conclude whether the decrease is due to the Player ID.