Denmark Gambling Tax: Why Winnings Are Tax-Free (2026)

How Denmark Taxes Gambling Winnings

Denmark offers one of Europe's most favorable tax environments for gamblers. For most bettors, the news is excellent.

The short answer: Gambling winnings from licensed Danish operators are tax-free for players.

Why Danish Gambling Winnings Are Tax-Free

Denmark's gambling tax system works differently from most countries:

The operator pays, not the player:

• Licensed operators pay taxes on their gross gaming revenue
• Tax rates range from 20% to 75% depending on game type
• Players receive winnings without any deduction

For sports betting specifically:

• Operators pay 28% tax on gross gaming revenue
• This is the operator's cost of doing business
• Your winnings are paid out in full, tax-free

Conditions for Tax-Free Winnings

Your winnings are tax-free if:

1. Licensed operator: You bet with an operator licensed by Spillemyndigheden (Danish Gambling Authority)
2. Recreational gambling: You're not classified as a professional gambler
3. Danish residence: You're a Danish tax resident

If all three conditions are met, you owe nothing on your winnings.

Licensed Operators in Denmark

Spillemyndigheden licenses numerous operators for the Danish market:

Major licensed bookmakers:

• Danske Spil (state-owned)
• bet365
• Unibet
• Betway
• LeoVegas
• Mr Green
• Bet25
• Cashpoint
• Nordicbet

Verification: Check the Spillemyndigheden website for the current license register.

What About Professional Gamblers?

If gambling is your profession, the tax-free status may not apply:

Criteria for "professional" classification:

• Gambling is your primary income source
• You gamble systematically and regularly
• You possess specialized skills or systems
• Significant time invested in gambling activities

Tax treatment for professionals:

• Winnings may be taxed as business income
• Progressive rates up to 52.07% (including labor market contribution)
• Can deduct gambling-related expenses
• Must register as self-employed (selvstændig)

In practice: SKAT (Danish Tax Authority) rarely classifies individuals as professional gamblers. Even consistent winners using value betting or arbitrage typically remain "recreational."

Unlicensed Operators

Betting with operators not licensed by Spillemyndigheden:

Legal status:

• Not illegal to use, but not protected
• Operators cannot legally target Danish players
• No consumer protection from Danish authorities

Tax implications:

• Technically, winnings may still be tax-free
• However, you have no legal recourse for disputes
• Banking issues may arise with deposits/withdrawals

Recommendation: Use licensed operators for full legal protection.

Impact on Value Betting and Arbitrage

Denmark's tax-free status makes it one of the best jurisdictions for systematic betting:

Advantages:

• Keep 100% of your profits
• No tax calculations needed
• No withholding on payouts
• Full EV retained on every bet

Comparison:

For value bettors, this means your edge translates directly to profit without erosion.

Record-Keeping

Even though winnings are tax-free, maintain records:

Why keep records:

• Proof of income source if questioned by SKAT
• Track your own performance
• Evidence that operators were licensed
• Protection in case of disputes

What to keep:

• Betting history exports from operators
• Deposit and withdrawal records
• Screenshots of license status
• Bank statements showing gambling transactions

Reporting Requirements

Recreational gamblers:

• No reporting required
• Winnings don't appear on your tax return (årsopgørelse)
• No action needed

Potential professional gamblers:

• If SKAT contacts you, respond promptly
• Provide evidence of recreational status
• Consult a tax advisor if classification is disputed

The State Monopoly vs. Open Market

Denmark has a hybrid system:

Danske Spil monopoly:

• Lottery (Lotto, Eurojackpot)
• Land-based slot machines

Open licensed market:

• Sports betting
• Online casino
• Poker

This structure allows competition while maintaining state revenue through operator taxation.

Key Takeaways

1. Gambling winnings are tax-free for Danish recreational bettors
2. Operators pay the tax on their revenue instead
3. Use licensed operators for legal protection and clarity
4. Professional gamblers may face income tax (rare classification)
5. No reporting required on your tax return
6. Denmark is ideal for value betting and arbitrage strategies

This guide is for informational purposes. For personal tax advice, consult a Danish tax professional (revisor or skatterådgiver).