Danske Spil Group Reports Satisfactory Performance for 2022

Despite what has been described as an uncertain backdrop molded by the decreased consumer confidence that reached an all-time low in 2022, Russia’s attack on Ukraine, the growing inflation, and the European energy crisis, the national lottery in Denmark has reported a satisfactory full-year performance. 

Overall Gross Gaming Revenue up 3% in 2022 

The group reported an overall gross gaming revenue (GGR) for the year that ended December 31, 2022, of DKK4.98 billion ($708 million), marking a 3% rise compared to 2021’s GGR of DKK4.83 billion ($687.74 million). The GGR recorded for 2022 was also aligned with the group’s guidance of between DKK4.80 billion ($683.55 million) and DKK5.00 billion ($712.04 million).

The group’s lottery business Danske Lotteri Spil recorded a GGR of DKK2.81 billion ($400.16 million), marking a 0.7% growth compared to 2021’s numbers while also establishing a new annual record.

At the same time, the operator’s sports betting and online casino segment, Danske Licens Spil, reached the DKK1.66 billion mark in terms of GGR for 2022, signaling a drop of 8.7% compared to DKK1.82 billion ($259.18 million) in 2021. The main factor that caused the decrease was the decline in sports betting. The casino segment’s revenue remained flat.

The gaming hall business Elite Gaming has recorded a GGR increase of 44.2% to DKK299.6 million ($426.05 million) as a result of all pandemic-related restrictions being removed from land-based gambling venues in Denmark.

Danske Klasse-lotteri, the class lottery that was embedded in the group last April, recorded a GGR of DKK192.5 million ($27.41 million). The operator’s Swush fantasy sports platform’s GGR went up 6.6%, reaching DKK16.1 million ($229,276).

Danske Spil also announced a 4% rise in its operating profit for 2022, to DKK3.60 billion ($512.66) after paying state taxes worth DKK644.7 million ($91.81 million), dealer commissions worth DKK459.6 million ($65.45 million) and additional costs related to gaming of DKK269.6 million ($38.39 million). 

The group’s net profit for 2022 was 6.2% higher on a YoY basis, to DKK1.73 billion ($246.36 million). Danske Spil ended last year with a paid income tax of DKK490.7 million ($69.87 million) and an EBITDA of DKK2.56 billion ($364.56 million), marking a 3.7% rise.

According to the group’s chief executive officer Nikolas Lyhne-Knudsen, Danske Spil managed to overcome the challenges it faced last year, reach growth, and fulfill its expectations. Lyhne-Knudsen spoke about the importance of their satisfying results in the context of their ongoing “efforts against gambling addiction” which continue to pay off and show good results in Denmark. 

According to the CEO, the group manages to continuously lower the number of Danske Spil customers who are at a high risk of being confronted with gambling addiction problems. Lyhne-Knudsen, who was appointed CEO in October 2020, emphasized the importance of promoting a selection of responsible games, safe and healthy habits of gamblers, customers’ happiness, and “healthy and profitable business”.

As stated in Danske Spil Group’s Code of Conduct for suppliers and business partners, the company “makes a dedicated effort to be a responsible player in the betting and gambling market” while focusing on the promotion of a responsible gambling market that can protect vulnerable players, children, young people, and other groups that are considered vulnerable. 

The group is a reputable member of international trade associations like the World Lottery Association and the European Lotteries, along with the Danish Online Gambling Association. 

Danske Spil is also a signatory to the Association’s Code of Conduct for Responsible Gambling and it constantly strives to only work with partners who have expressed their support for or who are certified within the previously mentioned responsible gambling standards.

Last October, Danske Spil announced it would renew its partnership with OpenBet.