Denmark illegal gambling hits 78% as big tech faces the heat

Date:

Kyle Kevin
Kyle Kevin
iGaming Writer
Fact Checked

Denmark’s official claim that 93% of gambling traffic is channelled into licensed operators has been abandoned. The honest number is closer to 78%, and the people pushing illegal gambling ads are now Meta, Google and the payment firms.

Quick Answer

Illegal gambling in Denmark has slipped: H2 Gambling Capital put channelisation at 78%, while Spillemyndigheden’s traffic measurement says 82%. Only 6-7% of Danish gamblers use illegal sites, but they are heavy players. Spillemyndigheden is pressing Meta and Google, and the next front is payment blocking.

In This Article
  • The 78% Channelisation Problem
  • Meta, Google and Denmark
  • The Payments Front in Illegal Gambling
  • Europe Calls for Action at the Commission

Denmark’s regulator has stopped using the number that made its licensing regime look perfect. For years, Spillemyndigheden told the world that 93% of gambling traffic was channelled to licensed sites. Anders Dorph, head of the regulator, said on Thursday at a SiGMA panel in Rome that the figure is no longer true. Better measurement is part of the explanation, but the real drop is elsewhere. H2 Gambling Capital, which began counting crypto casinos and affiliate traffic 18 months ago, put channelisation at 78%.

Spillemyndigheden’s own web-traffic measurement says 82%. A recent survey found that only 6-7% of Danish gamblers use illegal sites. Dorph was blunt about the remaining few: “But they are heavy players. We have to wake up and do something serious about it.”

The 78% Channelisation Problem

Denmark’s market has been the industry’s model since it opened in 2012. A narrow licence list, strict advertising rules and a real-time traffic measurement were supposed to squeeze illegal operators into irrelevance. The reality has been softer than that. H2 Gambling Capital’s estimate of Danish gambling captured by licensed firms fell to 78%, and the regulator’s traffic measure sits at 82%.

The gap is not a licensing failure in the traditional sense. It is a measurement and visibility problem. As a result, the conversation has moved past counting pages and toward the companies that make illegal gambling visible and profitable in the first place.

Meta, Google and Denmark

Dorph does not think regulators can finish this job alone. “You never see an illegal gambling ad on television, but on social media they’re everywhere,” he said. Regulators can remove individual ads, but he called that “too little, too late”. Only platforms with their own systems can filter at scale.

Spillemyndigheden held talks with Meta in May and is pressing for another meeting. Google has been in contact as well. The scale of the ask is large: Dorph pointed to social media platforms with around 500 million European users being exposed to heavy illegal gambling advertising. “We are calling on the platforms and payment firms to cooperate across Europe.”

AGBrief has been covering the European regulator scene.

The Payments Front in Illegal Gambling

For years, banks have told regulators that blocking gambling transactions is difficult, expensive and delicate. Dorph believes even modest success changes the maths: block 10% of the revenue and illegal operators face a real risk of not getting paid. DNS blocking is easy to dodge, he admitted, but activity on those sites still falls.

The method is obstruction. “We are putting as many obstacles in the way of the illegal market as possible.” Not every offender is a knowing one, either. Around one in ten Danish players does not know whether they are gambling on a legal site or an illegal one.

Europe Calls for Action at the Commission

Europe’s licensed operators have moved from pleading to demanding. Pierre Tournier, interim secretary-general of EGBA, told iGB that Brussels has “explored all the available legal avenues”. The conclusion is to pursue the companies licensed in the EU that facilitate the business of illegal operators, “which are often out of reach and based outside the EU”.

That points squarely at content platforms and payment firms. EGBA is lobbying DG CONNECT to enforce the Digital Services Act, while arguing that anti-money-laundering rules could be a powerful tool against the illegal market. DG GROW could pressure member states into EU-compliant licensing regimes.

The pattern is spreading beyond Denmark. Jānis Ungurs of Latvia’s State Revenue Service blocks around 4,500 web pages but said a new page appears under a new domain the next day. H2 puts a fifth of Latvian online gambling in illegal hands. Petya Sergeeva Kamenska of Bulgaria’s National Revenue Agency described self-excluded players slipping back through VPNs and proxies, and said Bulgaria is moving toward payment blocking with its central bank. “We feel very alone,” Ungurs said.

Frequently Asked Questions

What channelisation rate does Denmark report now?

H2 Gambling Capital put channelisation at 78%, while Spillemyndigheden’s web-traffic measure says 82%. The old 93% figure is no longer used. The 6-7% of gamblers using illegal sites are, according to the regulator, heavy players.

Why is Meta under pressure in Denmark?

Regulators cannot remove enough ads manually. Dorph says only platforms can filter at scale, with roughly 500 million European users exposed to illegal gambling advertising. Spillemyndigheden met Meta in May and is pressing for another meeting. Google has also been contacted.

What is the payments strategy?

The approach is obstruction, starting with banks. Dorph says blocking even 10% of illegal operators’ revenue would put them at serious risk of not getting paid. DNS blocking is dodged, but activity on those sites still falls, and around one in ten players is unaware they are using an illegal site.

How is EGBA responding in Europe?

EGBA says it has exhausted legal avenues at EU level and is calling on the Commission to pursue EU-licensed platforms and payment firms that help illegal operators. DG CONNECT enforces the Digital Services Act, while AML rules are being proposed as a tool to cut funding for the illegal market.

Is Denmark’s problem unique?

Latvia blocks about 4,500 pages but sees a new one under a new domain the next day, with roughly a fifth of online gambling illegal. Bulgaria is moving toward payment blocking through its central bank as self-excluded players return via VPNs and proxies. Denmark is one of several jurisdictions pushing this way.

Does the 93% figure ever return?

Not in its old form. Dorph says the number the regulator bragged about is no longer true. The real benchmark is H2’s 78% or Spillemyndigheden’s 82%, and the conversation has shifted from operator compliance to platform and payment firm behaviour.

This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.

Kyle Kevin
Kyle Kevin
Kyle is an iGaming writer with over two years of experience covering online casinos, sports betting, slot providers, and gaming regulation across Asia. Based in the Philippines, Kyle specializes in breaking down complex casino industry news into clear, actionable content for Casino players. His work on CasinoBait.com focuses on the Southeast Asian gaming market.

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