Online Gambling Regulations, Laws and Taxes in Denmark

Minutes left

minutes to read

Minutes left

Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

Learn about our Review Process

Published: July 26, 2020
Updated: April 1, 2026

Over the last few years, hundreds of online casinos have popped up, due to the popularity of this online gambling market. The industry itself produces billions of dollars annually, and countries that have jumped on the bandwagon are cashing in richly with yearly revenue obtained from the market.

Denmark, known as one of the happiest countries in the world, has joined in on legalising online gambling. The history that comes with their gambling laws is quite interesting, but mostly open-minded. In this article, we’ll take a look at the history and laws regarding gambling, as well as all new developments within regulation and Denmark's online casino market itself.

History and laws of gambling in Denmark

When it comes to gambling, Denmark had only one licensed betting company for many years. Danske Spil is a state-owned company that was the only legally licensed betting company, and all other Danish and foreign companies offering sports betting and other gambling options were prohibited.

However, the Danish government was put under a lot of pressure to change its regulations. This was probably for the better, as their regulations weren’t as effective as they thought they would be. In the years when Danske Spil was the only legal betting company, there were over 400 sports betting sites allowing Danes to place bets.

Danish gambling market liberalisation

In 2010, the Danish government started working on new legislation, which would only be placed in motion in January 2012. This moment in itself was historic as it liberalised the gambling market.

Danske Spil still had its monopoly over lotteries, animal race betting such as horse racing and a number of online casino games in Denmark, but other iGaming operators were finally allowed to apply for licences in sports betting, casino games and online poker.

The only exception was poker tournaments, which all fell under the Act on Public Poker. The Danish Gambling Authority, Spillemyndigheden, was in charge of ensuring the implementation of the Danish Gambling Act.

Licensing & regulation

With the liberalisation of the online gambling market, the Danish Gambling Authority (SKAT) made a point of licensing only 25 operators in the first year.

While the online gambling market has been opened, the Danish government is still focused on preventing unlicensed gambling sites from offering their services to Danish players. They proved their seriousness by blacklisting 57 sites in 2012 alone.

Impact on Danske Spil

It’s interesting to see that Danske Spil’s profits have skyrocketed since the new legislation came into effect. The company was split into two:

Danske Lotteri Spil: overseeing lottery operations
Danske Licens Spil: managing the licensed online gambling sector

The latter oversees the entire online gambling sector and has reported profits increasing by more than 60% from one year to the next.

Implications for Danish gamblers

For the Danish, the change in legislation means more gambling variety and a broader online casino base to choose from. However, the Danish government continues to enforce very strict licensing procedures for foreign operators and even tighter regulations on gambling advertising.

Starting in 2026, the authorities introduced major changes to advertising regulations, including a number of severe restrictions. These include a whistle-to-whistle ban on gambling ads during sports events, limiting promotions near schools and youth centres, and a prohibition on using public figures and people under 25 in ads.

Additionally, free bets are no longer allowed as welcome bonuses and risk warnings must be displayed in all forms of adverts. These measures ensure that gambling remains regulated, safe, and responsible for Danish players.

Stricter bans on illegal sites in Denmark

The Danes are not pushovers, and when it comes to their laws, they are known to be meticulous. In 2017, there was some trouble when internet service providers refused to restrict access to 24 online gambling domains focused on getting Danish players.

Denmark’s regulatory agency, Spillemyndigheden, was so displeased by the refusal that it went to court in an attempt to get its demands enforced. The case came to a close in the first month of 2018 when the courts ordered the ISPs to comply with the demands.

It is important to note that while online gambling is completely legal in the country, the Danish authorities are clear on the fact that any and all sites played on should be legalised by the regulatory bodies within the country. Online casinos are only permitted to offer their products and services to Danish citizens if they have gone through the strict licensing process and have been approved and granted a licence.

See more: Top-rated online casinos in the EU where you can play!

Are online gambling winnings taxable in Denmark?

In Denmark, players who have won while playing online gambling games must pay income tax on the prizes and winnings. This is due to the fact that most online casinos don’t deduct taxes before paying out the prize or cash winnings.

Hence, as a player, you must declare all winnings and pay any requested tax on them. There is no information on how much a player will be taxed, but as in most cases, it can be assumed that the amount of tax will be based on the amount of the winnings.

The tax rate for online casino operators is 20% of their commission. It might seem quite heavy, but when compared to the tax online operators have to pay in other areas, it is still quite reasonable.

Is online gambling legal in Denmark?

Online gambling has been legalised in Denmark since 2012. Thus, players can play at online casinos with peace of mind without fear of penalties or committing a crime. However, the Danish authorities have made it very clear that only sites that have received a licence from within the country's borders are considered legal.

It is vital that once you start looking for an online casino to play responsibly at, you search for those that have received the stamp of approval from the country’s regulatory bodies.

With the strict vetting process in place, players can also have peace of mind that if the country officials have given the casino the green light, it is a safe and secure site to play at.

CasinoWow's final recommendations

While some unlicensed sites might look glamorous and fun to play at, they could scam you. The results will be horrible, as the government will not support players who knowingly sign up at an illegal online casino.

Some of the top-rated online casinos available to the Danish market include LeoVegas Casino and NordicBet.

Both these online casinos are known for their superb welcome offers, quality game choices, frequent promotions and bonuses, tailored for the Danish players, and top-notch customer service.