Denmark seeks merger of Danske Spil and the Danske Klasselotteri

Denmark’s government believes the merger of Danske Spil and Danske Klasselotteri would create savings and benefits for digital transformation.

Denmark.- The Danish government has announced plans to merge the state-owned lottery operator Danske Spil with Danske Klasselotteri.

It says the merger would create savings opportunities as well as strategic management and investment benefits that could assist digital transformation and responsible gambling commitments.

It said that a single entity with combined operations would be able to create a better strategic framework, which would also be more efficient and cost-effective.

It’s expected that the merger could complete by the end of the year subject to the government gaining the necessary approvals. 

Denmark’s Ministry of Finance will work with both operators to prepare a merger and will prepare the legal structure and business model for the merged entity. It’s expected that Danske Klasselotteri would continue to exist as an independent identity with its existing brand and products.

Danish Finance Minister Nicolai Wammen said: “The state’s gaming companies have an important role in relation to contributing to a balanced and responsible gaming market in Denmark.

“I expect that a merger of the two companies can create operational benefits while supporting an even better framework when it comes to digitisation and responsible gaming. I am also pleased that we can contribute to ensuring the Klasselotteri has a stable and efficient framework in the Danske Spil Group in the future.”

Danske Spil chief executive Nikolas Lyhne-Knudsen said he believed the merger would benefit both Klasselotteriet and Danske Spil.

He said: “Now I look forward to the upcoming work, where a concrete model must be developed for the merger which could realise the benefits of a single, unified state gaming company.”

Last month, Pernille Mehl announced her resignation after six years as director of Danske Lotteri Spil. She will leave the Danish operator by November 1.

Meanwhile, the Danish gambling regulator, Spillemyndigheden, has warned that unlicensed providers are contacting customers offering membership to a “lottery subscription club“.

The Danish Gambling Authority (Spillemyndigheden) has reported that the channelisation to licensed gaming in Denmark hit a record 90 per cent in 2020. In May 2021, revenue from Denmark’s gaming licensed market was up 29.9% year-on-year.