Skinbetting and lootboxes

Skin betting refers to all forms of betting, casino games, and lotteries (games involving an element of chance) where the stake and/or the prize is a skin (a cosmetic item that can be purchased or won in a video game). Loot boxes can be seen as a form of digital lucky bags.

Is skin betting covered by the Danish Gambling Act?

Skin betting can fall under the Danish Gambling Act, but no operators have yet applied for a licence to offer skin betting in Denmark.

However, several times a year the Danish Gambling Authority obtains court orders confirming that skin betting sites are illegally targeting Danish players, and these sites are subsequently blocked.

Are loot boxes covered by the Danish Gambling Act?

Loot boxes are not necessarily covered by the Danish Gambling Act, and video games containing loot boxes therefore do not automatically require a licence.

A licence from the Danish Gambling Authority is required if all three of the following criteria are met:

There must be a stake (the skin can be converted into monetary value)
There must be an element of chance
There must be the possibility of a price (the skin can be converted into monetary value)

It is not possible to make a general assessment of whether items obtained from loot boxes have economic value. Therefore, it must be assessed on a case‑by‑case basis whether loot boxes fall under the Gambling Act.

To be covered by the Danish Gambling Act, a game must either be offered or organised in Denmark.

Even if a game is offered from another country, it may still fall under Danish rules if it clearly targets Denmark.

A game is considered to target Denmark if one or more of the following elements are present:

Danish language
Danish currency
Payment cards that only work in Denmark
Danish customer service
A game offering that, in its composition, is directly aimed at the Danish market
Connection via Steam (a digital distribution platform for many video games)

A game may also be considered targeted at the Danish market if it is marketed directly to Danish players, for example through direct mail.

It is not permitted for gambling operators to accept stakes from persons under the age of 18 when the game requires a licence from the Danish Gambling Authority.

What does the Danish Gambling Authority do about skin betting and loot boxes?

The Danish Gambling Authority has for several years maintained a particular focus on skin betting and loot boxes. We are in ongoing dialogue with relevant stakeholders in the field, both in Denmark and internationally.