Denmark announces the lowest numbers in gambling revenue for the first time since 2019. The same year when the market was regulated. This, however, doesn’t really come as a big surprise. Specifically due to the current COVID-19 pandemic, which saw all land-based casinos shut down indefinitely.
So naturally, it caught everyone off-guard when the official Danish governing body, the Spillemyndigheden, announced the numbers. The report states that there is an overall drop of 8.7% in gross gambling revenue for 2020.
As we already said, this is the first time that there is a severe decline in the numbers. The GGR(Gross Gambling Revenue) for 2020 was DKK6 billion. This comes quite short if we compare it to the DKK6.57 billion revenue in 2019. In total, Danish sports betting declined by 8.9%, right to DKK2 2.29 billion. Furthermore, slot machine revenue is down 29.3%, or to DKK 986.0 million.
And definitely the most significant drop of 31.7% by land-based casinos, or to just DK 239.9 million. However, not all is that grim. In fact, since the pandemic, online casinos and online sports betting became the main revenue providers. More specifically, with 4.5% to DKK2.45 billion. Which many experts and connoisseurs will agree is a real positive for the online gambling scene. And vice-versa.
We can say that this transfer of players from land-based casinos to igaming online entertainment is quite logical. Something that even the Spillemyndigheden agrees upon. But, at the same time, the danish governing body announced that there is a general drop at online casinos as well. More specifically, that since online casinos/betting was regulated in 2012, each year there was a progressive 13% growth by online casinos. So when put in such perspective, the 4.5% doesn’t seem like such a big deal.
Andres Dorph, the director of the Spillemyndigheden expressed his concerns via an official factual statement. When asked by the press on the matter, he stated:
One might have expected that there would have been a marked increase in online casino games when the physical gaming halls and casinos were closed down and the opportunities to bet on sports were severely limited.
Andres Dorph – Director of Spillemyndigheden
From this, we can only confirm that this sudden drop in numbers comes as a surprise for everyone. One would think that at least online gambling will explode. But, obviously, this is far from an explosion. The numbers are definitely worrying, given that the pandemic is still going strong.
Meaning, it is only natural for people to prioritize their expenses. Hence the lowest numbers from gambling in Denmark ever. However, every good news is welcome, regardless of the magnitude. And right now that is that despite obvious low numbers, the whole industry depends on the online igaming and gambling providers.
