A Danish government proposal to overhaul gambling rules has triggered a sharp response from the affiliate industry. This includes a restriction on revenue-share affiliate marketing based on losses or turnover. Critics warn that the changes could wipe out long-established business models. They also say the reforms could undermine one of Europe’s most successful regulated gambling markets.
A draft bill to amend the Danish Gambling Act is at the centre of the dispute. The restriction would apply to future contracts and put an end to deals already in force. The proposal would restrict revenue- and loss-based commission models. While it would not ban affiliate marketing outright, it would effectively undermine the business model that most Danish gambling affiliates rely on.
According to affiliates, the decision threatens years of investment made under rules that have been stable since Denmark liberalized its gambling market in 2012. The Ministry of Taxation argues that the reform is necessary to strengthen consumer protection and reduce incentives that could encourage excessive gambling. Yet, industry figures question both the legal basis, as well as the logic behind the move.
The affiliate backlash sits uneasily with the current reforms. It contrasts with the regulatory philosophy repeatedly articulated by Anders Dorph, director of the Danish Gambling Authority, Spillemyndigheden. Dorph stressed that the approach of Denmark to gambling regulation has long been rooted in pragmatism instead of prohibition.
According to Dorph, outright prohibition simply doesn’t work. Their goal is harm minimization, not an unrealistic attempt to restrict human behavior.
Dorph consistently argues that the success of Denmark’s gambling model depends on keeping the licensed market attractive enough to compete with unlicensed operators. He warns that illegal operators, which do not pay tax or follow marketing rules, can always offer more aggressive conditions. He adds that placing too many restrictions on the legal market makes it impossible for them to compete.
