Denmark’s Finance Minister, Nicolai Wammen, has announced that his ministry favours the merging of state-owned gambling companies Danske Spil and Danske Klasselotteri.
Wammen stated in a report to the Danish parliament that a merger would “create a better strategic framework” for state-owned assets and how charitable contributions are dispersed, benefiting Danish society.
Wammen also stated that both businesses needed a digital makeover in order to compete with Denmark’s regulated market incumbents.
Approval of merger
The merger of Danske Spil and Danske Klasselotteri has the approval of the majority of Folketing members, with the Social Democrats backing the mandate.
The government, along with the Danish Olympic Committee (DIC) and the National Gymnastic and Sports Association (NGSA), own a majority stake in Dansk Spil (DIG).
The Ministry of Finance will begin working with the governance of Danske Spil and Danske Klasselotteri to develop a “concrete proposal” for merging the state-owned companies, including a “new business model.”
Danish MPs rejected a mandate from Venstre, Denmark’s Conservative Liberal Party, in 2017 to sell all state shares in Danske Spil as a prerequisite for the government to alter Denmark’s Gambling Act in 2018.
CEO Nikolas Lyhne-Knudsen of Danske Spil announced that he would collaborate with the Ministry of Finance in order to “realise the benefits of creating a single unified state gambling company.”