In Denmark there is a general prohibition against lotteries, which can be found in the act on Lottery Prohibition110 and in the Sections 203 and 204 of the penal Code. This prohibition can be excepted by an authorization. According to the Act on Lottery Prohibition the authorization can only be given to lottery organizers who promote good causes, while the Act on Certain Games, Lotteries and Betting111 contains a specific exception for one single company. The company set up according to this act is the Dansk Tipstjeneste A/S.
Today the Danish gambling market is in principal run by two main societies, Dansk Tipstjeneste A/S and Det Danske Klasselotteri A/S (the Danish state lottery). Det Danske Klasselotteri has been set up by the Minister of Taxation, while the state owns 80% of the Dansk Tipstjeneste. The rest is owned by two Danish sports organizations. Currently Dansk Tipstjeneste runs lotteries, betting and has a wholly owned subsidiary that operates gaming machines outside casinos. With the Dansk Tipstjeneste and the Danish state lottery, the Danish state ensures that the profit from the market is channeled to public benefit purposes. In addition the market includes a number of private gaming providers who, like the state, either donate the profit to public benefit or, in return for their licenses and permits, pay a high duty to the State Treasury.
The objectives for the current system and legislation are:
– keeping the consumption of games with financial stakes at a moderate level,
– protecting consumers when they engage in gaming and in betting activities,
– limiting gambling addiction and combating economic crime as well,
– restricting private individuals’ access to utilize people’s desire to gamble as a basis for a commercial gain112.
The significant contribution to the financing of public interest activities is closely connected with the aim of preventing gambling from being a source of private profit.113 The establishment of Dansk Tipstjeneste in 1948 was conditional upon the profit going directly to sports and other activities of general benefit for the public or to the State Treasury.114 As a synthesis, we can notice that there are three types of authorized lotteries in Denmark:115
– Class Lottery – provided by Det Danske Klasselotteri
– Charitable lotteries, e.g. Varelotteriet og Landbrugslotteriet, local charitable lotteries etc.
The gaming market is supervised by four ministries (Ministry of Taxation, Justice, Finance and Family and Consumer Affaires) and a Gaming Authority has been established. A breach of the acts will be sanctioned by a fine or prison according to the Criminal Code.2.
An arrangement where the participants, against the payment of a stake, obtain a chance to win and where the winning depends on the hazard.116. Arranging lotteries is therefore permitted in the form of raffles, scratch lotteries, bingo, etc.117
Casino gaming involves roulette (both French and American), baccarat and black jack.
Casino gaming requires a permit from the Minister of Justice.118 The Minister of Justice can allow other kind of games, as well as limit the number of games in a casino.119 Machine gambling outside casinos Prizewinning gambling machines include mechanic or electric machines that can be used for games where the gambler, against an economical stake, can win a prize containing money in cash or gambling money.120
– gaming with money is understood as games where the prize is paid out in cash or in gaming money with the possibility to exchange it for cash.
– gaming with gambling money is understood as games where the prize is paid out in gambling money that can be exchanged for goods or services.
– a gaming hall is understood as manned premises where prizewinning gambling machines can be placed.
Betting can be made on dogs, horses, etc.121 Regarding dogs and horses the bets can be placed on fixed odds (bookmaker betting) and on bets with current odds (totalizator betting).122 Betting involves an element of chance.
An arrangement where the participants, against the payment of a stake, obtain a chance to win and where the division of the winning depends on the hazard.123 In the Danish interpretation of the game, Bingo doesn’t differ from other lotteries encompassed by the Lottery Prohibition Act. The prize cannot be money, securities or similar, though this restriction can be exempted from in a specific area authorized by the police.124 Gift vouchers can constitute a bingo prize as long as they can’t be exchanged for money.
Media gambling services
There is no legal definition of media gambling services.125
There is no legal definition of promotional games.126
110 Lov 06/03/1869 om Forbud mod lotteri m.m.
111 Lovbekendtgørelse 2003-12-11 nr 1077 om visse spil, lotterier og væddemål
112 Skattministeriet, “Comments and corrections to the Draft Report – Study of Gambling Services in the Internal Market of the European Union”, p. 8.
114 The Future Gaming in Denmark – brief version, published by the Ministry of Taxation, 21/8 2003, p. 3.
115 Skattministeriet, “Comments and corrections to the Draft Report – Study of Gambling Services in the Internal Market of the European Union”, p. 2.
116 Cirkulære om bortlodning CIR nr 147 af 01/08/1994, art. 1 sec. 3.
117 Dansk Tipstjeneste, information delivered after the consultation of the Preliminary Draft Report.
118 Lovbekendtgørelse 1994-10-10 nr. 861 om spillekasionoer, ch. 1 art. 1 and ch. 2 art. 2 sec. 1.
119 Lovbekendtgørelse 1994-10-10 nr. 861 om spillekasionoer, ch. 1 art. 1 and ch. 2 art. 2 sec. 2.
120 Lovbekendtgørelse 2002-07-25 nr. 631 om gevinstgivende spilleautomater, ch. 1 art. 2.
121 Lovbekendtgørelse 2003-12-11 nr. 1077 om visse spil, lotterier og vaeddemal, art. 1.
122 Lovbekendtgørelse 2003-12-11 nr. 1077 om visse spil, lotterier og vaeddemal, art. 1A sec. 2 and 3.
123 Cirkulære om bortlodning CIR nr 147 af 01/08/1994, art. 1 sec. 3.
124 Cirkulære om bortlodning CIR nr 147 af 01/08/1994, art. 5.
125 See information in a letter from Skatteministeriet.
126 See Bekendtgørelse af lov 2000-07-17 nr 699 om markedsføring (The Marketing Practices Act, consolidated Act n°699 of 17 July 2000).
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