Compliance assessment and reponses
When you have obtained a licence to offer gambling in Denmark, the Danish Gambling Authority monitors your compliance with the conditions of your licence and your compliance with the rules of the gambling legislation, regardless of whether you offer land-based or online gambling activities.
The Danish Gambling Authority’s supervision
The Danish Gambling Authority have adopted a risk-based approach to our role as a supervisory authority. This means that we allocate our resources to the areas where we assess that it is most important. In our assessment of the areas, we consider the consequences of potential breaches, any previous breaches and the frequency of breaches in the sector.
The Danish Gambling Authority bases its compliance assessments on dialogue, efficiency, responsibility and trust.
Compliance assessment of online gambling activities
The Danish Gambling Authority monitors the online casino and online betting sectors based on the data that you, the licence holder, submit to us. We also assess compliance based on the information you provide in the annual account and reports we receive from citizens and other licence holders.
In addition, we perform project-based, targeted compliance assessments, where we for example review all licence holders’ procedures in a certain area or all licence holders’ websites. We also conduct spot checks based on compliance projects.
Compliance assessment of land-based gambling activities
The Danish Gambling Authority monitors land-based gambling, that is on-site provision of gambling products in for example gambling arcades, land-based casinos, shops, and kiosks.
Compliance assessments of land-based gambling primarily takes place as on-site inspection where one or more of the Danish Gambling Authority’s employees are physically present at the gambling premises and assess whether the gambling premises comply with the legislation. These inspections are supported by different data controls of the individual gambling premises.
We conduct announced and unannounced compliance visits. In connection with new applications for gambling arcades, we conduct an on-site approval of the premises.
The Danish Gambling Authority often do inspections based on selected compliance projects that go in-depth on topics with a limited scope, where we suspect or know that there might be problems with compliance with the rules as well as based on reports from citizens.
The Danish Gambling Authority cooperate with the police for example in connection with answering technical questions and assisting at police operations.
The Danish Gambling Authority’s responses at compliance assessments
If the Danish Gambling Authority suspect or become aware of breaches of the gambling legislation, we have different response options.
Consultation of the interested parties
The purpose of a consultation of the interested parties is to ensure that the party
- knows that the case exists
- knows the facts available and professional assessments that are the basis of the case and
- can comment on the facts available in the case and the professional assessments before the case is closed
The Danish Gambling Authority are obligated to consult parties in administrative cases, where the party is only partially upheld, for example when a licence for gambling with associated terms and conditions is issued.
The Danish Gambling Authority also use consultation in other cases than administrative cases, as we consider that all cases are assessed sufficiently and that our stakeholders feel that they have been heard. In principle we always consult before we send a compliance case to the police.
If there is any doubt about the actual information of the case. The Danish Gambling Authority will gather further information or send a consultation to the parties. Gathering of information is used when we do not have a reason to suspect any breaches of the legislation.
Notice of violation
A notice of violation is an informative letter about the rules applying and can be considered a yellow card. The Danish Gambling Authority send notices of violation in cases where we assess that a breach of the legislation has taken place, but where the character of the breach does not result in a police report.
A notice of violation is not a decision, because is does not order the recipient to perform a certain action. The notice of violation exclusively informs the recipient of the Danish Gambling Authority’s interpretation of the existing law in a certain area. It is therefore not possible to complain about a notice of violation.
If there is no doubt about the facts available, you may receive a notice of violation without a preceding consultation.
Report to the police
If a business or a person has breached a penalised provision of the gambling legislation, the Danish Gambling Authority will assess, based on the character of the breach, whether there is a basis for a report to the police. When the Danish Gambling Authority reports a business or a person to the police, the case is transferred to the police.
If the Danish Gambling Authority become aware of breaches of the AML Act, the Danish Gambling Authority have other response options than in cases where the gambling legislation is breached.
The Danish Gambling Authority can issue orders to gambling operators for breaches of the AML Act. The order will include a deadline, after which the gambling operator must comply with its obligation under the Act.
The Danish Gambling Authority use orders in the situations where the Danish Gambling Authority orders a certain behaviour or action in the future. It can both be in cases where the gambling operator acts against the law or omits to act, although an action is required by the law.
An order must be issued in the situations where breaches are serious, repeated, systematic or a combination of the above.
We primarily issue orders in connection with breaches of the AML Act’s rules on
- Risk assessment and risk management
- Customer due diligence measures, and
- Obligations to investigate, register, report and keep records.
In a limited scope, the Danish Gambling Authority may also issue orders in other situations. If a gambling operator does not meet an order, the gambling operator may be penalised by fines. An order cannot be issued for breaches that no longer exist.
In case of uncomplicated and nonsignificant breaches of formalities and in cases where the gambling operator admits having made a mistake in connection with the Danish Gambling Authority’s investigation, we may, as an alternative to an order, enter into a verbal agreement with the gambling operator about an immediate improvement. It means that the gambling operator agrees to immediately correct the situation in compliance with the Danish Gambling Authority’s order.
Immediate improvements are therefore used in situations where we assess that an order is unnecessarily formal.
If we find a no longer existing breach of legislation, the Danish Gambling Authority cannot issue an order in response, as there is no future behaviour to correct. It may for example be a breach concerning a temporary situation that is finished at the time where the Danish Gambling Authority finds the breach, or where the gambling operator of its own has already corrected the situation.
Instead, the Danish Gambling Authority can reprimand the gambling operator, which is a variation of an order. If the case involves gross or repeated breaches, we will, however, report the matter to the police.
Report to the police
Intentional or grossly negligent breaches of a number of provisions of the AML Act may cause us to report the matter to the police and may result in a fine for the gambling operator unless a higher penalty is due under the criminal code. The statute of limitations for violations of the AML legislation is 5 years.
In the fixing of the fine, the business’s net turnover at the time of the crime must be considered.
The Danish Gambling Authority is obligated to publish responses under the AML Act on our website.
In the explanatory notes to the AML Act, responses are defined as all responses decided by the Danish Gambling Authority and that are aimed at a party, including all decisions, orders, actions brought against gambling operators, and decisions to report a gambling operator to the police.
The publication must appear from the Danish Gambling Authority’s website for 5 years after the release.