The Danish government recently launched a series of strict new gambling regulations called "Spilpakken 1," which include banning gambling advertisements during live sports events, strengthening outdoor promotion controls, and limiting free game bonuses, triggering a strong reaction from the industry. Morten Rønde, head of the Danish Trade Association Spillebranchen, expressed "shock" and warned that the new rules lack evidence support and could disrupt the country's long-maintained regulatory balance, leading to a decrease in channelization rates, legal operators exiting, and a surge in black market gambling. The industry and media anticipate that the new regulations will have significant economic impacts, including losses in national tax revenue and media income, and could cause Denmark to lose its status as a model of gambling regulation in Europe.
New Regulations and Industry Reaction
The Danish government's "Spilpakken 1" measures include: a complete ban on gambling advertisements during live sports events, restrictions on outdoor advertising within 200 meters of schools, and new limits on free game bonuses. The Minister of Taxation from the Social Democrats stated that the move aims to prevent entertainment from turning into addiction, noting that the gambling industry "has occupied too much space for too long." Industry representative Morten Rønde pointed out that these measures lack empirical basis, and the government's basis is unclear research data from three years ago, with the real reason being public fatigue over excessive advertising.
Black Market Risks and Channelization Challenges
The industry warns that the new regulations could significantly promote black market growth. Data from H2 Gambling Capital shows that Denmark's gambling channelization rate has dropped from 90% in 2022 to 72%, on par with Sweden. Rønde noted that experiences from countries like Italy and the Netherlands with advertising bans show that overly restricting the legal market leads to a surge in illegal gambling. The Danish black market already exists due to a lack of popular products (such as bumper car games and virtual gambling), and the new regulations could further weaken the competitiveness of legal operators, driving consumers towards unregulated platforms.
Economic Impact and Regulatory Outlook
The new regulations are expected to have significant economic consequences: Denmark's largest commercial TV station TV2 anticipates an annual loss of up to 12 million euros in revenue, and the government estimates that national tax revenue will lose several hundred million Danish kroner. The Secretary-General of the Swedish Gambling Association BOS expressed concerns, believing that Denmark's new direction could undermine its system as a model of regulation in Europe. The measures will be gradually implemented starting January 2027, and the industry is focused on whether Denmark can maintain a balance between protecting consumers and maintaining market competitiveness, or become a case of "good intentions, bad outcomes."
