Total gross gaming revenue is on the rise in Denmark, according to a statistic report provided by Danish gaming regulator Spillemyndigheden.
Spillemyndigheden estimates that DKK 7.75 billion ($1.1 billion) in gross gaming revenue was generated within the domestic market in 2014, representing a two-percent growth from the DKK 7.575 billion that was estimated in 2013, and a three-percent growth from the DKK 7.5 billion that was estimated in 2012.
The small growth in the Danish gaming market was propelled by the large growth in the country's online gaming offset by revenue declines experienced by land-based casinos.
Online casino gaming became regulated in Denmark effective Jan. 1, 2012, and has grown to the point where there are now a total of 27 land-based operators, according to CalvinAyre.com.
Regulated online casino operators in Denmark are subject to a high 28-percent corporation tax along with a 20-percent gross gaming revenues tax. Additionally, there is a one-time license fee ranging from DKK 50,000 ($7,034) to DKK 350,000 ($49,240), along with annual fees of DKK 50,000 ($7,034) to DKK 1,500,000 ($211,027) based off revenues.
Despite the huge barriers to profit, online gaming operators have seen potential in the country, realizing huge gains during the three years of regulated gaming. In 2014, online gaming operators in Denmark realized an estimated DKK 2.855 billion ($400 million) in gross gaming revenue, representing a big 20-percent growth from the DKK 2.375 billion reported in 2013, and an even bigger 40 percent growth when compared to the DKK 2.045 billion $330 million) in revenues in 2012.
The seven land-based casinos located in Copenhagen, Elsinore, Odense, Vejle, Aarhus, Aalborg, and the ferry Pearl Seaway between Copenhagen and Oslo were unable to turn to the same fortunes, experiencing declines between 2012 and 2014.
An estimated gross gaming revenue of DKK 325 million ($45 million) was realized by land-based casinos representing a three-percent decline from the DKK 335 million ($46 million) estimated for 2013 and a six-percent decline from the DKK 345 million ($48 million) estimated in 2012.
An even bigger decline took place in the country's 25,500 gaming machines located in gaming halls and restaurants. The estimated gross gaming revenue for gaming machines was DKK 1.505 billion ($212 million) in 2014, representing an eight-percent decrease from the DKK 1.630 billion ($226 million) estimated for 2013, and a 17-percent decrease from the DKK 1.820 billion ($252 million) estimated in 2012.
Special thanks to Oanda.com for the exchange rates used in this article.
Image courtesy of FreeImages.com