Higher taxes and fees eat into Danske Spil profits for Q1
The Danish lottery and gaming operator’s net profit fell by 2.5 per cent year-on-year.
Denmark.- The state-controlled lottery and gaming operator Danske Spil has reported a drop in net profit for Q1 despite a slight increase in gross gaming revenue. Revenue for the quarter ending March 31 came in at DKK1.123bn (€151m), up from DKK1.122bn in Q1 2021.
The reopening of the company’s Elite Gaming venues after Covid-19 restrictions on land-based gaming last year saw a slight uptick in revenue despite lottery sales falling by 3 per cent year-on-year to DKK637m and Danske Licens Spil’s revenue from sports betting and gaming falling 8.4 per cent to DKK423m. The Swush fantasy sports platform contributed the remaining DKK2m.
However, net profits for the quarter were down by 2.5 per cent year-on-year to DKK392m due to 12 per cent higher tax payment (DKK149m) and higher dealer commissions (DKK105m). Other gaming costs were down slightly at DKK65m but personnel expenses rose 2.5 per cent and financial costs rose 188.9 per cent.
Despite the set back, Danske Spil is sticking by its current full-year guidance, which places revenue between DKK4.8bn and DKK5bn and net profit between DKK1.6bn and DKK1.7bn.
Danish gambling regulator announces changes to new electronic ID system
The national gambling regulator Spillemyndigheden has briefed online casino and sports betting operators on the launch of Denmark’s new national electronic ID system. Denmark is introducing MitID, an updated electronic ID to replace the existing NemID.
NemID has been used in Denmark for 12 years to verify identity when logging in to online banking and other digital services such as gaming, as well as for communication with public authorities. The new MitID is an updated version developed through a public and private partnership.
The new system will be introduced on July 1. For a short time, gaming operators will be able to use both MitID and NemID for customer identification but NemID will then be phased out.
Last month, Spillemyndigheden warned operators to remember that they must respect laws addressing customers subject to financial sanctions. Meanwhile, the regulator has reported that between 2019 and 2021, it made more than 4,000 inspections of slot machines which led to 255 police reports.
Spillemyndigheden monitors around 23,000 land-based slot machines in Denmark in order to detect illegal activity. These are located at 983 gaming halls and 1,277 restaurants across the country.
