Newsletter 35

01 Jun 2017

The final requirements for the 2016 annual account

1 June 2017

We hereby publish the final requirements for the 2016 annual account.

When should the annual account be sent?

The Danish Gambling Authority must receive the annual account no later than 31st July 2017.

Who should send an annual account?

All betting and online casino license holders that have held a license throughout the entire period between 1st January 2016 and 31st December 2016 must send an annual account.

License holders for whom 2016 was their first year providing gambling are not required to send an annual account. These license holders must instead produce a report on their provision of gambling, which must be delivered no more than 14 months after the license was taken into use.

The report must account for the license holder’s compliance with the terms of the license during the past year. Learn more about these requirements in newsletter no. 14.

What should the annual account include?

1. Key financial data

2. A profit and loss statement on the following points: 

- Gross Gaming Revenue (GGR)
- Government taxes
- Profit from gambling
- Other income
- Staffing costs
- Other external costs (excluding marketing)
- Marketing costs
- Write-offs and write-downs
- Earnings before financial income and tax
- Financial income
- Taxes paid on profits
- Net profit for the year

The profit and loss statement must relate to the most recently reported financial year. If activities relating to the Danish market are not recorded in a separate account, a profit and loss statement for provision of betting and/or online casinos on the Danish market must be delivered. The profit and loss statement must include a section detailing the nature of these posts. The license holder’s top management must sign the profit and loss statement.

Other key data

3. The number of registered players divided according to age and gender. Players shall be divided into the following age groups: 18-25 years, 26-35 years, 36-45 years, 46-55 years, 56-65 years, 66-75 years, 76+ years.

4. Distribution of marketing expenditure as a percentage of the marketing budget for the Danish market for the following media:

4.1. TV
4.2. Cinema
4.3. Printed media
4.4. Radio
4.5. Internet (If possible, please divided into the following categories) 
4.5.1. AdWords
4.5.2. Banner adverts on third party websites
4.5.3. Social media (such as Facebook, Instagram and similar)
4.6. Own homepage
4.7. Email
4.8. SMS
4.9. Other

Allocation of bonuses (online casinos)

5. The number of welcome bonuses allocated to new players in each quarter of 2016 and their value in kroner.

5.1. The number of welcome bonuses to new players realised in each quarter of 2016, and their value in kroner. Realised is to be understood as the amount the player has deposited in their gambling account in connection with the bonus, in relation to the amount that is then been paid out to the player. For example, the amount that is paid out to the players gambling account.

6. The number of bonuses allocated to existing players in each quarter of 2016 and their value in kroner.

6.1. The number of bonuses to existing players realised in each quarter of 2016 and their value in kroner. Realised is to be understood as the amount the player has deposited in their gambling account in connection with the bonus, in relation to the amount that is then been paid out to the player. For example, the amount that is paid out to the players gambling account.

7. The number of prize payments where “free spins” have been used by players in each quarter of 2016, and their value in kroner minus the value of placed stakes. Stakes is to be understood as the amount that must be placed in order to activate the bonus.

Allocation of bonuses (betting)

8. The number of welcome bonuses allocated to new players in each quarter of 2016 and their value in kroner.

8.1. The number of welcome bonuses to new players realised in each quarter of 2016, and their value in kroner. Realised is to be understood as the amount the player has deposited in their gambling account in connection with the bonus, in relation to the amount that is then been paid out to the player. For example, the amount that is paid out to the players gambling account.

9. The number of bonuses allocated to existing players in each quarter of 2016 and their value in kroner.

9.1. The number of bonuses to existing players realised in each quarter of 2016 and their value in kroner. Realised is to be understood as the amount the player has deposited in their gambling account in connection with the bonus, in relation to the amount that is then been paid out to the player. For example, the amount that is paid out to the players gambling account.

10. The number of prize payments where “free bets” have been used by players in each quarter of 2016, and their value in kroner minus the value of wagered stakes. Stakes is to be understood as the amount that must be placed in order to activate the bonus.

11. The number of refunds issued in each quarter of 2016, where license holders refund a players’ stake if the bet is unsuccessful (often called “risk-free bets”), and their value in kroner. Stakes is to be understood as the amount that must be placed in order to activate the bonus.

12. The proportion of allocated bonuses realised in each quarter of 2016 in number and their value in kroner.

Complaints

13. The number of complaints received from players (the definition of a complaint is when a player disagrees with a license holder’s case handling or result thereof.)

14. The average case handling time for a complaint.

15. The number of complaints where the case handling time has exceeded 14 days.

Deposit limits and the number of self-excluded players

16. The proportion of all players that each quarter (1/1/2016, 1/4/2016, 1/7/2016, 1/10/2016) have set a deposit limit:

16.1. Daily 
16.2. Weekly 
16.3. Monthly

17. The number of players that have arranged a temporary self-exclusion in agreement with the license holder:

17.1. 24 hours 
17.2. 30 days 
17.3. over 30 days

18. The number of players that have agreed a permanent self-exclusion in agreement with the license holder.

Report on the license holder’s compliance with legislative requirements

The report shall as a minimum address:

19. A management report including information on the enterprise’s main activities and developments, as well as a description of significant factors that have or are expected to impact upon the enterprise.
If the enterprise is part of a business group, the uncertainties relating to both the enterprise and the group must be described. Furthermore, information on key events must be provided, such as campaigns, changes in the gambling products offered or gambling platforms, as well as other significant activities. In addition, expectations for the following year must be set out in the management report.

20. Responsible gambling measures, in particular:

20.1. Which measures have been taken to ensure that marketing is not sent to players that have excluded themselves from gambling
20.2. Measures taken to tackle money-laundering and financing of terrorism (only online casinos)
20.3. Money withheld from players with temporary gambling accounts where the identity of the player has not been finally verified.
20.4. If a temporary account is not verified within 30 days, is reactivation of the account permitted if the player supplies valid identification after 30 days have passed?
20.5. The number of times a temporary account was not verified within 30 days after it was opened.
20.6. Is it possible for a person under 18 years to open a temporary account and play, if the person uses their own personal information or elements thereof, hereunder NemID? If yes, how many instances has a person under 18 years played via a temporary account?
20.7. Which payment methods can players use to pay into a gambling account (only applies to online betting and online casinos).
20.8. How license holders ensure bets are not placed by players under 18 years, including what training dealers and staff receive on this matter (only land-based betting).
20.9. How many times the license holder has identified the sale of bets to minors under 18 years (only land-based betting).
20.10. If the sale of bets to minors under 18 years has occurred, the license holder must explain how it will prevent this from taking place in the future.
20.11. Precautionary measures to reduce the risk of match-fixing (only betting – if land-based betting is offered, this must be documented separately).

In instances where legislative requirements apply, measures for ensuring how these requirements are met must be described, for example legal compliance procedures.

If a license holder identifies instances of failure to comply with legislative requirements, the license holder must explain how they will ensure compliance in the future.

Confidentiality

Annual accounts are not made public. Any potential publication of data will always be made in anonymised form, and data identifying the individual license holders will not be published. The data received will be used for analysis of the betting and online casino markets, with some of the data used by the Danish Gambling Authority for illustrative purposes – though always in anonymised form.

Formal requirements

The annual account must be written in Danish. The requested information must be divided according to the numbered sections above.

The information must be dated and signed by a person authorised to sign for the enterprise. This person must, with his/her signature, declare that the annual account gives a true account of the circumstances mentioned in the account. Documentation verifying the signatory’s authority to sign on behalf of the license holder must be enclosed.

For companies not established in Denmark or in another EU/EEA country, the Danish representative must also sign the annual account.

It is not a requirement that the annual account is written in cooperation with an approved enterprise.

Where should the annual account be sent?

The annual account must be sent to the Danish Gambling Authority. It is possible to send a secure (encrypted) email to the Danish Gambling Authority through the contact form on our website (see under “Contact”).

If the license holder has a Danish CVR number, the annual account may also be sent via Digital Post.

It is also possible to send the annual account by mail to
Spillemyndigheden
Englandsgade 25, 6. sal
5000 Odense C

Reports must be submitted with ”Årsredegørelse 2016” in the subject line.

Laws and regulations

The requirement to provide an annual account is found under Section 43(2) of the Act on Gambling, and Section 22(2) of the Act for Greenland on certain games.