Denmark’s regulator issues warnings about bonus offers

The regulator warned operators and reiterated that the word “free” is misleading if a wager is required.

Denmark.- Spillemyndigheden, the Danish Gambling Authority, released a statement this week and issued a warning to operators. The watchdog discussed the use of terms such as “free” when marketing bonus offers.

The regulator assessed that the use of the word “free” when marketing a bonus offer is misleading if a wagering requirement is attached to the offer. This particular act doesn’t comply with the regulator’s Marketing Act.

In accordance with the Consumer Ombudsman, in 2016 a statement contemplated the use of the word “free” in bonus offers. “The Consumer Ombudsman found that the chance of winning a win was impaired because consumers could not raise their winnings if they stopped the game before the wagering requirement was met, and the total sum of consumer deposits and winnings was higher than the consumer’s initially deposited amount,” said the statement.

The gambling authority said that this is similar to other concepts such as “free spins” and “free bet” if a turnover requirement is attached to the offer. “The use of these terms can create an expectation on the part of the consumer that the offer is actually free without any limitations and will therefore be contrary to the law if this is not the case,” said the watchdog.

New Code of Conduct will come into force in Q2

Last month, the regulator published a new Code of Conduct, set to come into force on July 1, 2019. This new standard will increase consumer protection and contribute to preventing compulsive gambling.

DOGA, the trade association for online gambling in Denmark, said that the Code should be an industry benchmark. The association said that it sets minimum industry requirements. Individual gaming providers can go further than the code prescribes.

Among the new regulations, advertising cannot suggest that games can be a solution to financial problems or showcase gambling as something indispensable. They also must have a responsible message prominently displayed that warns players to keep account of how much they’re spending.

Age restrictions must be shown on websites and social media along with responsible gambling information. Pop-up windows should also inform players how long they’ve been playing and how much money was spent during that time. In order to continue playing, players must acknowledge the message or stop gambling.