Compliance assessment and reponses

Supervision and responses under the Gambling Act

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. 

Cooperation

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 

1. knows that the case exists
2. knows the facts available and professional assessments that are the basis of the case and
3. 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. 

Inspection and responses under the Anti-Money Laundering Act

Inspection

The Danish Gambling Authority inspects all gambling operators with a licence to offer gambling in Denmark and gambling operators established in Denmark who offer gambling abroad. 

In connection with the Danish Gambling Authority’s compliance assessments, the Danish Gambling Authority selects gambling operators for inspections where it is assessed whether the gambling operators comply with the obligations of the AML legislation. 

Types of inspections

The Danish Gambling Authority carries out three types of inspections: a full-scope inspection, an ad hoc inspection and inspections focused on a specific topic. 

The Danish Gambling Authority conducts full-scope inspections to check whether gambling operators comply with all obligations of the AML Act. 

The Danish Gambling Authority uses ad hoc inspections to check whether gambling operators comply with specific obligations of the Anti-Money Laundering Act. 

An inspection focused on a specific topic is used by the Danish Gambling Authority to check whether gambling operators comply with a specific topic of the AML Act.  

Gambling operators are obligated to submit all information necessary for the inspection to the Danish Gambling Authority. 

The process of the inspection

Here, you can find out more about how the inspection process may proceed. The Danish Gambling Authority will always consider the specific circumstances of each inspection. 

The Danish Gambling Authority will let the gambling operator know that they have been selected for an inspection. At the same time, the gambling operator will be requested to send in written materials which they are obligated to have prepared under the Anti-Money Laundering Act. 

The Danish Gambling Authority then reviews the material. If the Danish Gambling Authority needs any additional material, we will request that the gambling operator send it to us. 

After reviewing the material, the Danish Gambling Authority considers whether there is a need for an interview with the gambling operator about the specific case. The purpose of the interview is, among other things, to asks questions about the material. 

If the Danish Gambling Authority assesses that there is a basis for responding to the gambling operator, the Danish Gambling Authority will send a written notice of consultation to give the gambling operator the opportunity to comment on the matter. 

Finally, the Danish Gambling Authority will either end the case with a response or a concluding letter without a response. 

If the Danish Gambling Authority decides on a response, the Danish Gambling Authority will publish a summary of the response on the Danish Gambling Authority’s website. 

If the Danish Gambling Authority decides on an order, the gambling operator will be offered a guidance meeting with the Danish Gambling Authority. 

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.

Responses

The Danish Gambling Authority’s response options are different when it concerns breaches of the Anti-Money Laundering legislation rather than breaches of the gambling legislation. 

The Danish Gambling Authority can either issue an order, immediate improvements, reprimands or reports to the police. 

Immediate improvement

Uncomplicated and insignificant breaches of formalities and in cases where the gambling operator admits having made a mistake in connection with the Danish Gambling Authority’s inspection, 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. 

Reprimands

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 has ended at the time where the Danish Gambling Authority finds the breach, or where the gambling operator has already corrected the situation on their own initiative. 

Instead, the Danish Gambling Authority can reprimand the gambling operator, which is a variation of an order.

Orders

The Danish Gambling Authority can issue an order to gambling operators for breaches of the Anti-Money Laundering Act. The order will include a deadline before which the gambling operator must comply with the obligations under the Act. 

The Danish Gambling Authority issues orders in situations where the Danish Gambling Authority ordes a specific behaviour or action in the future. It can both be in cases where the gambling operator acts contrary to the law or fails to act although an action is required by law. 

An order must be used in situations with serious, repeated or systematic breaches or a combination hereof. 

The Danish Gambling Authority primarily issues orders in connection with breaches of the Anti-Money Laundering Act’s rules on 

• Risk assessment and risk management
• Customer due diligence measures, and
• Obligations to investigate, register, report and keep records. 

The Danish Gambling Authority can also issue orders in other situations to a limited extent. An order cannot be issued about breaches that no longer exist. 

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.

Publication 

The Danish Gambling Authority is obligated to publish responses under the AML Act on our website. 

Responses are all decisions made by the Danish Gambling Authority on orders, reprimands, 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.