Denmark Imposes New Business License Obligation for Firms Servicing Gambling Industry

New Licensing Requirements for B2B Suppliers in Danish Gambling Industry

The Danish Gaming Authority (DGA) has announced a series of changes that will affect companies supplying services to gambling operators. Starting next year, any B2B supplier (including game suppliers and platform providers) will be required to obtain a Danish supplier license to operate legally within the Danish market.

The DGA will begin accepting applications for these licenses in September, with the new requirements set to take effect in January 2023. To help facilitate the licensing process, the DGA will introduce a new portal, the "Games Register," for suppliers to manage their licenses by October.

The licensing process involves several key steps. Suppliers must file their own application and compliance documents, ensuring a clear separation of roles from gambling operators. If suppliers perform both game supplier and other supplier-related B2B activities concurrently, they must obtain dual certifications/licenses.

Technical requirements are also a crucial aspect of the process. Suppliers must meet technical accreditation standards prescribed by the DGA, demonstrating their systems and products meet Danish regulations for fairness, security, and reliability. Individual games must be certified, and the DGA maintains a Games Register portal where licensed suppliers submit games for listing and certification.

Games and gambling systems require independent testing by approved test labs to verify compliance with the DGA’s technical standards. This testing covers fairness, RNG (random number generator) integrity, and security protocols.

The fees for licensing range approximately from DKK 304,500 for a single supplier license up to DKK 426,300 for combined applications, plus ongoing annual fees based on gross gaming revenue. Once licensed, suppliers remain under continual supervision by the Danish Gambling Authority, with support from the Danish Ministry of Taxation and Danish Consumer Ombudsman, especially on AML (anti-money laundering) compliance.

During the transition period until July 2025, the new rules will become mandatory. No games can appear on Danish gambling sites until the independent checks are completed. Suppliers will receive login information from the DGA to upload their existing game certifications, which will remain valid under the new rules.

The "Games Register" portal is a self-service tool for suppliers to manage their licenses, including uploading their existing game certifications. This portal is a new addition to the licensing process, providing suppliers with a convenient way to streamline the certification process and keep their approved game portfolio updated for Danish operators.

The deadline for suppliers to upload their existing game certifications is not specified but is expected to be before the new rules become mandatory in July 2025. The DGA has provided details about the licensing process on its website, and the new "Games Register" portal will be used for license management, in addition to the licensing process details already provided.

Denmark Imposes New Business License Obligation for Firms Servicing Gambling Industry