Danish Gambling Authority Updates Certification Program

The Danish Gambling Authority has recently spotlighted updates from the Financial Action Task Force (FATF) regarding high-risk jurisdictions. These updates include revised Grey and Black Lists, which have significant implications for gambling operators in Denmark. The emphasis is on ensuring that operators incorporate these lists into their risk assessments to better manage potential money laundering and terrorist financing risks.

FATF’s Updated Lists: What They Mean for Operators

The FATF’s Grey List now includes countries like Bulgaria, Burkina Faso, Cameroon, Croatia, DR Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, the Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, and Yemen. On the Black List, the Democratic People’s Republic of Korea, Iran, and Myanmar remain significant concerns.

For Danish gambling operators, these lists are essential tools in conducting enhanced customer due diligence (EDD), as outlined in section 17(1) of the Danish Anti-Money Laundering (AML) Act. This means that operators must pay extra attention to players from these high-risk areas to prevent potential misuse of their platforms for illicit activities. However, EDD is specifically required for players from jurisdictions on the EU Regulation of High Risk Third Country list.

In a bid to strengthen efforts against illegal gambling activities, the Danish Consumer Ombudsman, the Gambling Advertising Board, and the Danish Gambling Authority have formed a new alliance. This collaboration aims to streamline interventions against illegal gambling marketing, ensuring a more effective and coordinated approach.

Starting January 1, 2025, the Danish Gambling Authority will roll out a new certification program for betting and online casinos. By July 1, 2025, it will become mandatory for all game suppliers and operators to adhere to the updated standards, though early adoption is highly encouraged.

The revised certification program aims to clarify requirements for license holders and game suppliers. It is part of the Authority’s broader preparations for a new games register, which will handle Random Number Generator (RNG) and game certificates, ensuring a higher level of compliance and transparency.

Several significant changes are introduced in the new certification program:

1. Clarified Roles and Definitions: New definitions such as ‘license holder,’ ‘game supplier,’ ‘base platform,’ ‘game platform,’ and ‘game certificate’ are now included. Each actor is now responsible for their own certification, simplifying the reporting process.
2. Supervisory Standards: The qualifications for supervisors have been updated to align with international standards like ISO, PCI, or CREST, ensuring that oversight and compliance are maintained at high levels.
3. Streamlined Reporting Deadlines: The deadline for submitting standard reports has been standardized to one month across all documents, making the reporting process more efficient.
4. New Documentation: New documents have been added, including SCP.01 for RNG requirements, SCP.02 for base platform requirements, and SCP.07 for game requirements covering online betting, land-based betting, and online casinos.
5. Integration and Testing: The certification requirements now focus more specifically on RNG and game requirements, updating the previous testing and inspection standards accordingly.
6. Security Enhancements: CREST accreditation is now recognized for companies performing penetration testing and vulnerability scanning, ensuring that the highest security standards are met.
7. Change Management: New sections address the approval processes for system changes, particularly those involving integration between base and game platforms.

Transitioning to a Pure Regulatory Role

Pagcor, the Philippine Amusement and Gaming Corporation, is also making significant strides toward becoming a purely regulatory body by 2025. This includes plans to privatize Casino Filipino properties, fostering a more competitive market, and encouraging new investments in the Philippines.

The Danish Gambling Authority’s recent updates reflect ongoing efforts to enhance regulatory oversight and ensure the integrity of the gambling industry. By aligning with international standards and fostering closer collaboration between regulatory bodies, the Authority aims to create a more transparent and secure gaming environment. These changes highlight the dynamic nature of the gambling sector and the continuous efforts to address emerging challenges and opportunities.

Source:

”Consultation on an updated certification programme for betting and online casino”, spillemyndigheden.dk, July 15, 2024.

”New agreement to strengthen efforts against gambling operators’ marketing”, spillemyndigheden.dk, July 11, 2024.

”Update to the FATF’s list of high-risk jurisdictions”, spillemyndigheden.dk, July 08, 2024.