Ladbrokes to go for Danish online casino market
Posted by Gavin Smith on 12 Aug 2009 at 10:08
British bookmaker Ladbrokes is set to apply for an online licence to operate in Denmark if changes mooted by the Danish government go ahead.
EGRmagazine.com said the Danish government is looking to put out licences to private operators so they can allow betting on sports, casino and poker in Denmark.
According to the magazine, the licences will cost between 3m and 4m Danish Kroner (£340,000-£455,000) each year.
Executives at the company said although smaller firms might be put off by the initial costs, Ladbrokes could be better positioned.
Quoted by EGRmagazine.com, Ladbrokes’ country manager for Denmark, Richardt Funch, said: "We are aiming and planning for a licence because Denmark is an important market for us, and the restrictions and conditions do not look more frightening than in Italy and Spain, which are other territories we have gone into.”
The site has previously said 72 per cent of Ladbrokes' internet turnover comes from the UK, with the rest coming from north European countries.
But Ladbrokes will first have to wait for confirmation of the precise tax rate before it applies for a licence.
Funch was further quoted by the site as saying that the firm had heard it could be looking at 15 to 20 per cent, which would be "acceptable" for the company.
Also mentioned was the fact that the Danish government could face legal challenges on its proposal to only permit Danske Spil, the state licensed gaming monopoly, to run the likes of bingo, lottery and scratch cards.
He told EGRmagazine.com: "We will be getting a legal view on this and the arguments the government will use to support restricting these games to the monopoly because we believe that, in principle, games shouldn’t be treated differently.
Admittedly, lottery has a historic structure attached to it, but when it comes to scratchcards and bingo, which we offer in other EU markets such as the UK, it becomes problematic,"
More news is expected after October 7 the deadline for when European Commission must respond on the Danish government's licensing plans.
