Licensed restaurants are allowed up to 3 machines depending on size. A gaming licence has a duration from one to five years. In restaurants, the gaming licence is limited to the length of the existing alcohol licence. Gaming licences cost 750 DKr. (100 Euro) per machine per year.

In Denmark, tax must be paid on a monthly basis.

In restaurants, this is 40% of cashbox up to 30.000 DKr. (4.027 Euro) per month, plus 70% of casbox over 30.000 DKr. (4.027 Euro) per month. A further 1% has to be paid for gaming addiction treatment and research. 

In arcades, the taxation is 40% of cashbox up to 250.000 DKr. (33.557 Euro) per month, plus 70% of cashbox over 250.000 DKr. (33.557 Euro) per month. A further 1% has to be paid for gaming addiction treatment and research.

A deposit to guarantee the tax must be paid before a site starts to operate. The deposit is 7.500 DKr. (1.006 Euro) for a restaurant and 95.000 DKr. (12.751 Euro) for an arcade.

AWPs have a stake of 50 øre (7 cent) and a maximum jackpot of 300 DKr. per game. (40 Euro).

In 2009,  Danish AWPs gave a total turnover of EUR 271 mill. (this is a fall of 9% compared to 2008). Of this, the Danish state got EUR 96.8 mill. in gaming tax. EUR 17.7 mill. was paid to local charitable purposes (mainly sports clubs and youth clubs). Furthermore, EUR 2.7 mill. was paid to research into and treatment of gambling addiction. The surplus amount is typically divided equally between AWP operators and the gaming venue.

Like the rest of the world, Denmark was affected by economic recession. The AWP business has been affected as well. In 2009, the machine operators’ published accounts have yet again shown that the large operators in particular are finding it difficult to maintain their earnings. It is easier for the smaller local operator to adapt his or her business to the declining earnings.

A proposal for a new overall gaming Bill covering all gaming in Denmark was introduced in March 2010. The Bill had been expected at the end of 2009. This new law is meant to partly liberalize the online gaming area in order that sports gaming and poker - among others - through the Internet become legal. Lotto and Bingo on the Internet must still be conducted as a monopoly of the state’s own gaming company, Danske Spil (Danish Gaming).

In particular, the trade association DAB has noticed that according to the Bill, on-line gambling through the Internet only has to pay 20% in government tax. This must be compared to the overall burden of taxation on AWPs of approx. 44%. DAB has submitted a hearing reply to the Bill. In this reply, DAB points out that the AWP business cannot compete with on-line gaming, unless it is on equal terms as regards taxation, maximum stakes and maximum winnings.

The difference in taxation could decide which part of the gaming business will survive. The Bill will be read for the first time in Folketinget (the Danish Parliament) on 23rd April 2010. Prior to this first reading in Folketinget, DAB has arranged meetings with the tax policy spokesmen from practically all parties. In this way, DAB hopes to be able to influence the decision-making process.

Over the past 18 months, DAB has also been communicating with Skatteministeriet (the Ministry of Taxation) concerning new rules for payment of VAT on the earnings from AWPs. These new rules would mean that in addition to an overall government tax of approx. 44%, 25% VAT of the would have to be paid.

DAB protested vigorously against the heavy overall burden of taxation, which will cost the business approx. EUR 13.5 mill. in additional taxation. Skatteministeriet (the Ministry of Taxation) claimed that the introduction of VAT on gaming proceeds had been decided by the EU, and that this was merely a matter of adjusting Danish legislation to EU legislation. DAB has entered into co-operation with some of Denmark’s best lawyers and accountants in order to have Skatteministeriets (the Ministry of Taxation) decision overruled. After several meetings with senior officials at Skatteministeriet (the Ministry of Taxation), DAB’s argumentation was finally heard, and Skatteministeriet (the Ministry of Taxation) has now informed the industry that it does not have to pay VAT on gaming proceeds after all.

Size of industry

             2007     2008         2009

AWPs     26.700  27.500       27.150

FINLAND

Gaming in Finland is organized as a national monopoly, and the gaming market is divided between three organizations: Raha-automaattiyhdistys (RAY), operates casinos and casino table games, as well as slot machines. The revenue from RAY’s games goes to social and health care organizations. Veikkaus Oy, The Finnish National Lottery provides lotteries and betting, from which the proceeds are distributed to Finnish culture, arts, science, sports and youth work. Fintoto Oy runs pari-mutuel wagering, with the revenue being allocated to horse breeding, horse sports and trotting.

RAY recently reported a 1% drop in net profits to €402.5 million for the 2008 financial year, despite a 1% increase in revenues to €659.5 million, in line with the company’s target of moderate growth for the year.

Slot machines located on the premises of RAY’s estimated 9,000 business partners accounted for 78.1% of turnover, with a further 3.3% from casino games in pubs and clubs. RAY arcades contributed 13.0% while RAY’s Grand Casino Helsinki, the only casino licensed to operate in Finland, accounted for the remaining 5.4%.

In Finland, there are two different age limits on gambling: 15 and 18 years. RAY applies the limit of 18 years to the casino and casino table games, as well as to slot machines in gaming arcades. For other slot machines, the limit is 15 years. For the games operated by Veikkaus Oy, there is a limit of 15 years for playing at the retail outlets, and a limit of 18 years for internet gaming.

The Åland Islands have said they would consider licensing foreign operators to provide online gambling to the Finnish mainland, should the new State Lotteries Act not make provision for the autonomous region’s own monopoly PAF.

Size of industry

1 Casino

43 racetracks (trotting)

54 gaming arcades

287 restaurants with casino table games

over 4,000 game retail outlets

18,000 slot machines

NORWAY

A controversial ban on the processing of any unauthorised online gambling transactions in Norway passed into law on June 1 this year.

The Act establishes that processing payments for remote gambling where the gambling is being conducted without a Norwegian licence will amount to “accessory involvement” in unlawful gambling. 

The Ministry for Culture and Church Affairs in Norway  imposed some of the world’s strictest rules on video gambling machines in a drive to reduce the number of compulsive gamblers.

Under the regulations introduced in 2008, all gaming machines operated by Norsk Tipping AS, the Norwegian State-owned gaming company, are only accessible to pre-registered users via prepaid cards. ‘There will be limits on how much an individual can lose, they will be closed at night and there will be a cooling-off period after one hour of continuous play,’ said Trond Giske, Minister for Culture and Church Affairs.



The Government had grown increasingly concerned about the rising number of Norwegians reportedly addicted to gambling machines and banned all privately owned machines in July 2007 while it looked for ways of better regulating them.

SWEDEN

The government is considering new gaming legislation but is waiting for the election to take place in August 2010. The new law will probably enhance the monopoly and make it harder for foreign companies to operate in Sweden  

Swedish gambling is controlled by the state-owned Svenska Spel whose activities include betting at sporting events and dog racing, the operation of gaming machines and the organisation of lotteries.

Svenska Spel’s monopoly has been challenged a number of times in the European courts, most notably by betting giant Ladbrokes and local provider JENSIgame. In June 2005, the Swedish Supreme Administrative Court decided not to overturn a decision by the Swedish government to reject an application from Ladbrokes to be allowed to set up betting operations in Sweden.

On the other hand, JENSIgame has proven how to be successful in fighting for a just gaming environment. In a self-chosen monopoly, gaming can still be enjoyed via the internet. JENSIgame has proven time and time again in lengthy, indeed costly court cases in Sweden that the internet solution from JENSIgame – the Internet Lottery Terminal (ILT) is indeed an internet terminal and should be treated that way. The games are offered from the company´s headquarters in the Czech Republic. JENSIgame has fought for this right through the local City Courts and District Courts. Next year it is expected that the Supreme Court of Sweden will uphold this. The question of responsibility is also clear. Contrary to the statement of companies trying to prevent gaming democracy, the game is organised via a central server outside the country. Otherwise each and every bar owner where a gaming machine is placed in Sweden could be seen as organising the game.

Swedish politicians have appeared to shift away from maintaining the monopoly due to the pressure from the courts. Prior to the last Swedish General Election, the leader of the victorious Moderate Party Fredrik Reinfeldt, stated that his party would consider getting rid of the current gambling monopoly and replacing it with a regulated betting market that allows private companies to apply for gaming licences.

When in June 2007 the European Commission formally requested France and Sweden to amend their gambling laws following consideration of their replies to letters of formal notice sent in April and October 2006, it was hoped this would finally effect change.

However, in August 2007, the Swedish Government surprised many observers, when it refused to bow to demands from the European Commission that it should throw open its betting market to non-Swedish companies. In its official response, to a Commission request of June 2007, the Swedish government said that while it has and will consider such demands, it has no intention to implementing changes to Sweden’s gambling laws. Moreover, the Swedish government went on to say that it sees those aspects of Swedish law that are deemed to be incompatibe with EU law, as actually being totally acceptable, in as much as they serve their stated purpose of strengthen social security and countering criminal activity’.

On October 27 2007, Sweden’s governing party, the Moderate Party voted at its annual conference in Gävle on Saturday to come out in favour of the liberalisation of the Swedish betting market; including the sale of Svenska Spel and ATG.

It was anticipated by many, that Sweden’s Ministry of Finance would announce on 15 December 2008, a new set of measures that would put an end to Svenska Spel’s monopoly of the Swedish betting market. Jan Nyren, the person responsible for the new plans, was said to have favoured an open door licensing system, that would see foreign betting operators enter the Swedish market for the first time.

However, when the time came for the Ministry to make its announcement, it was clear that there was nothing new on the table, as regards the Swedish Government’s position regarding the opening of its betting market to outside operators.

Size of industry

Number of amusement machines - 1.500

Cost of the various licences - SKR200/application +20/month

Comment from sponsor

The Internet Lottery Terminal – known in its abbreviated form as the ILT – is the solution for internet lottery gaming. JENSIgame is a pioneer in uniting internet lottery gaming within a traditional gaming cabinet. This internet cabinet allows operators to offer lottery gaming fun within their own premises regardless where it is situated – for example in an arcade, gaming hall, casino, a restaurant, a bar, pizza outlet, etc.

The ILT has been designed with the highest security and players key interests in mind. JENSIgame has four decades of experience in the gaming industry which has flowed into the ILT development. Indeed, it was back in 1968 that JENSIgame was incorporated – by Swedish entrepreneur Mr. Jens Göransson. What was originally a hobby for a very young man has grown to into a pan-European business. JENSIgame was a pioneer in bringing video games to the Scandinavian market in the early 1970’s.

JENSIgame is very much a pioneer in driving through fair and just gaming rights. The example in Sweden underlines this. JENSIgame is, therefore, fighting for correct gaming rights within the gaming industry. This takes time and dedication. Furthermore, it is a major investment in legal support such as top lawyers are engaged who fight the battle for the gaming industry on behalf of JENSIgame against an almighty state. “Many a company would not risk taking such a stance”, explains Mr. Göransson. “For us this is our raison-d´etre. We are securing employment within the industry and game choice for the players. We do not want gaming to fall outside of legal boundaries. Thus, it is our priority to ensure that these boundaries are fair and just.”

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