DANISH ONLINE GAMBLING MONOPOLY ANNOUNCED RESTRUCTURING

Denmark's monopoly to split into three, though the legislative process remains unfinished

The state gambling monopoly Danske Spil announces its restructuring plans, despite the fact that the implementation of the law regulating the Denmark's market liberalisation originally planned for the start of 2011 has been delayed following a dispute over the considerable disproportion between the proposed taxation rates on land operations and those performed online.

According to the announcement, Danske Spil is planning ahead for the advent of the new dispensation though introduction of a more open regulated market in Denmark is not now expected before summer 2011.

Hans Christian Madsen, the chairman and chief executive of Danske Spil, has predicted that the tax protest commenced by land operators will fail, although it has affected the timeline of the liberalisation process. Commenting on Danske Spil’s activites, he explained that the state monopoly continued its restructuring, training and management arrangements so as to ensure the best possible market position by mid-2011.

It has been announced that the company is planning to split its operations into three units following an organisational restructuring aimed at more dedicated focusing.

One division will be in charge of the more open market for sports betting, poker and casino; another will continue to target the monopolised market, including lottery, scratch games, horse racing and bingo, and the third division will cover the video lottery terminal sector.

It has not been revealed yet with which software supplier the company will engage in regard to the online sports betting, casino and poker operations.

The restructuring will allegedly include some management changes and hiring of two managing directors. The liberalised market division, to be known as Danske Licens Spil, will be headed by Jens Aaløse, whilst Danske Lotteri Spil will be managed by Mette Dyhr. Danske Spil marketing director Klaus Lohse has been let go by mutual agreement. Other senior appointments have been made in the following departments: IT, finance and sales.