Turnover, Profits Up for Denmark's Gaming Monopoly

Danish gambling monopoly Dansk Tipstjeneste Group has reported significantly improved results for the first six months of 2003.

The group, a consortium of Dansk Tipstjeneste A/S (sports betting, football pools, instant tickets and number lotteries), DanToto A/S (horse and dog races) and Dansk Automatspil A/S (gaming machines), shows a total turnover of US$663 million and a profit of US$110 million.

Henrik Nielsen, information officer for Dansk Tipstjeneste Group, said the growth in turnover is realized mainly by the raise in January from 80 percent to 87 percent per bet of the Oddset-game "Den Lange." At the same time, bets on "doubles" instead of "trebles" were made possible (meaning that two-games-bets were mandatory instead of three-games-bets mandatory).

Moreover, a change in the law, made in March 2003, specifies that advertising for games, lotteries and betting is illegal for any operator not licensed in Denmark. Violation of the law can be sanctioned with a penalty or even imprisonment. Responsibilities for monitoring the entire Danish gaming market have been delegated to the Danish Gaming Board by the Minister of Taxation.

Nielsen said the influence of the new law is so far not clearly measurable. "At this time, it is difficult to state whether the new law has actually had a positive effect on Dansk Tipstjeneste's report for the first six months of 2003," he explained.

"On the other hand," he added, "Dansk Tipstjeneste does not doubt that the prohibition against advertising for illegal games in the future will limit foreign bookmakers' possibilities of increasing their turnover in the Danish gaming market. Therefore Dansk Tipstjeneste is so far satisfied with the introduction of the law."

Financial Results for the First Six Months of 2003

Turnover

Total Turnover: US$663 million.
Profit: US$110 million.
Proportional to the first six months of 2002, the turnover has increased by $102 million, and the profits by $9 million.

Turnover Apportioned

Dansk Tipstjeneste A/S: $521 million (a $50 million increase)
DanToto A/S: $34 million (a $0.3 million decline).
Dansk Automatspil A/S: $109 million (a $52 million increase).

Traditional Games

Number Games: $318 million (a $3 million decline).
Instant Tickets: $72 million (a $10 million increase).
Sports Games: $31 million (a $44 million increase).

Additional Statistics

The growth in turnover means the Danish state receives $4 million more in taxes.
Dansk Tipstjeneste's retailers received $2.2 million more in commission than they received the first six months of 2002.