Part 5: Regulatory uncertainties
any results this time around
that it was the closeness of the
Scandinavian market and the
availability of black or grey market
offerings that targeted Norway
and Sweden that accounted for
the relatively high percentage of
offshore play.
“Norway is one of the most
attractive markets in Europe,” he
said. “There are so many Scandi-
based operators, looking to get into
the Norwegian market. And the
players know all these brands and
they like them.”
Factors suggesting the black
market percentage has fallen:
New market entrants
Some of the biggest brands from
elsewhere in Scandinavia have
joined the market since the last
survey took place. With the likes of
LeoVegas and Mr Green now inside
the tent, this reduces the number of
popular Scandi-facing brands in the
Danish dot.com market.
Affiliate corralling
More of the affiliates sites operating
into the Danish market are now
controlled by one or other of
the big super affiliates. Without
promotion from the affiliate sector,
the chances of an offshore operator
being able to thrive against
heavily marketed licensed brands
diminishes.
Sweden regulating
The fact of Sweden now being set
Without promotion
from the affiliate sector,
the chances of an
offshore operator being
able to thrive against
heavily marketed
licensed brands
diminishes
Chart 8: Unlicensed play among the Danish populace (%)
30
27
25
23
20
15
10
6
5
0
Sports betting
Source: DOGA
22
Poker
Casino
on the road to regulation will once
again cut down further on the black
or grey market operators looking to
continue marketing into Denmark.
As is discussed in the final section
of this report, the likelihood is that
the Swedish opening will convince
more operators to look once again
at entering Denmark.
Kindred’s general manager for
Denmark Kim Olsen agrees that
the percentage of black market
play is likely lower than 14% now.
“No doubt the efforts made by the
Danish Gaming Authority have had
an effect, albeit it is still too easy to
gain access to the grey market,” he
says.
Andrew Cochrane at SBTech
agrees. “The combination of
reasonable taxation levels and the
presence of major international
brands have helped drive out the
unlicensed operators from the
market.
“Regulation is always a balancing
act between states generating
tax revenues, ensuring player
safety and sporting integrity and
providing an attractive working
environment for firms wanting to
work in regulated jurisdictions.
Overall, I think Denmark has done
this well since 2012.”
There is a word of caution from
Funch at EveryMatrix, though,
along the lines that like the poor,
black market players are always
with us.
“Based on the fact that the
Danish legislation has been very
liberal, in terms of marketing and
promotion and the way you can
run the consumer offering, this
means there is no real incentive
for a consumer to approach an
Denmark: Insights and data on Europe’s pioneer model for igaming regulation