Denmark's Gaming Revenue Boosted by Online Casinos August 2024

Denmark's gaming industry witnessed a remarkable surge in August, marked by an increase in gross gaming revenue (GGR) to DKK571 million (£64.2m/€76.6m/$84.1m), as reported by Spillemyndigheden, the national gambling authority. This represented a 4.3% enhancement compared to the previous year and a 3.1% rise over July's GGR of DKK554m. This growth was primarily fueled by the rise in online casino activities, which helped offset declines in other areas of the gaming sector.

In August, the online casino sector displayed significant progress, contributing significantly to the growth in Denmark's gaming market. The revenue generated by online casinos climbed to DKK299m, showing a substantial 20.8% increase from August 2022. This also reflects a 5.3% rise over the DKK284m achieved in July 2023. The figures came close to the March 2023 all-time high of DKK309m for online casino revenues. The expansion of the online casino segment has not only compensated for downturns in other areas but has also underscored its increasing significance within Denmark's gaming industry. As consumer preferences continue to pivot towards digital gaming, the online casino sector has become an essential pillar in the regulatory and commercial landscapes.

Challenges in Traditional Gaming Sectors

In contrast to the thriving online casino market, other parts of Denmark's gaming sector faced hurdles. Sports betting experienced a notable decline, with a 14% decrease in revenue to DKK147m compared to August of the previous year. This was also 1.3% less than the revenue collected in July this year. Various factors, such as shifts in consumer preferences and inconsistencies in sporting events, have contributed to these challenges. The struggles in the sports betting arena are emblematic of wider trends observed in global markets, where traditional betting formats are losing ground to the rapidly growing online gaming competition. The land-based casino and slot machine sectors encountered similar issues, struggling to regain their pre-pandemic momentum.

Revenue from physical slot machines amounted to DKK96m in August, witnessing a small 0.2% drop compared to the same period last year. Despite this minor dip, performance improved slightly compared to July. Meanwhile, land-based casinos reported a 12% decline in revenue, totaling DKK29m in August—matching July's figures—indicating persistent struggles in revitalizing this sector to pre-pandemic performance levels. These declines underline the ongoing difficulties faced by traditional gaming formats in the face of digital advancements.

Emphasis on Responsible Gambling Programs

Amid these shifts in Denmark's gaming landscape, attention to responsible gambling has grown. Spillemyndigheden highlighted an increase in participation in Denmark's national self-exclusion program, ROFUS, with 51,893 individuals registered by the end of August, signifying a 12.4% rise from the previous year. Of these, 77.3% were male and 22.7% were female. A notable 66.6% of those registered opted for permanent exclusion, while the remaining 17,371 individuals chose temporary exclusion solutions. This reflects a blend of short-term and long-term strategies employed by gamblers to self-regulate their gaming habits.

Additionally, insights into the user demographics of StopSpillet, a support service initiated in 2019, were shared. Of the nearly 3,200 inquiries since its inception, a significant 37% originated from individuals aged 18 to 25, indicating a higher level of engagement from younger players with support services designed to promote responsible gaming practices. The uptick in the use of self-exclusion and support services underscores a rising awareness and initiative towards responsible gambling in Denmark. As the gaming market evolves, these programs will be instrumental in aiding players to manage their gambling behaviors effectively.

Overall, while Denmark's gaming industry recorded an upswing largely due to the online casino sector in August, the declines in other areas, including sports betting and land-based operations, illustrate ongoing challenges. As digital gaming continues to gain momentum, supported by initiatives like ROFUS and StopSpillet, the industry is expected to remain vigilant in adapting to the changing market dynamics.

Source: ''Online casino drives Denmark gambling revenue to DKK571m in August'', igamingbusiness.com, October 08, 2024.

By GamesAndCasino