Denmark Gambling and Gaming Tax Guide

Casual Gambling — Winnings are Tax-Free

General rule (LL §5, stk. 1, nr. 4): Winnings from casual gambling are tax-free in Denmark. This includes: lottery winnings (Lotto, Eurojackpot, Vikinglotto, Klasselotteriet), betting winnings (Danske Spil, licensed online bookmakers), casino winnings (roulette, blackjack, slot machines at licensed casinos), bingo winnings, poker tournament winnings (live and online, if played casually), and prize competition winnings (TV game shows, radio contests, supermarket draws). The tax-free treatment applies to both Danish and foreign gambling winnings — if you win in a licensed EU/EEA lottery, the winnings are tax-free in Denmark. The rationale: the winnings are considered windfall gains (tilfældige gevinster), not income.

No deduction for losses: Because winnings are tax-free, gambling losses are not deductible for casual players. You cannot offset lottery ticket costs, betting losses, or casino losses against other income. The losses are personal expenses, not deductible. This is consistent with the tax-free treatment of winnings — the tax system does not participate in gambling outcomes.

Gifts of winnings: If you give away your winnings to family or friends, the gift may be subject to gift tax (gaveafgift) if the amount exceeds the annual allowance (~72,000 DKK per recipient per year). The winnings themselves are tax-free, but transferring them to someone else is a gift. For more on gift tax, see our Inheritance and Gift Tax Guide →.

Professional Gambler Classification

When gambling becomes a business: If you gamble as a profession (erhvervsmæssig spillevirksomhed), your winnings are taxable as business income and your losses are deductible. SKAT uses a multi-factor test to determine whether gambling is a business or a hobby. The key factors (from SKM2023.375.SR and SKM2024.115.SR): (a) systematic and organised approach — do you use mathematical models, tracking systems, statistical analysis, or proprietary software to identify value bets? (b) profit motive — is the primary purpose profit, not entertainment? (c) scale and regularity — do you place a high volume of bets (e.g., 50+ per week) consistently over a long period? (d) expertise and knowledge — do you have specialised knowledge (e.g., in sports statistics, horse racing form) that gives you an edge? (e) business infrastructure — do you have a dedicated office, employ assistants, maintain accounting records? and (f) use of betting exchanges — do you trade on betting exchanges (e.g., Betfair, Matchbook) in a manner resembling financial trading?

SKAT's position: SKAT has historically been reluctant to classify gambling as a business. The threshold is high — you must demonstrate that you have a genuine, systematic edge over the market. Most professional gambler claims are rejected on audit, and the winnings remain tax-free (but losses are non-deductible). If SKAT reclassifies you as a professional gambler, your winnings become taxable from the start of your professional activity (not from the date of SKAT's decision). The leading case is SKM2023.375.SR, where a professional poker player was classified as a business because he had a systematic approach, tracked results, and derived his primary income from poker. If you believe you qualify as a professional gambler, apply for a binding ruling (bindende svar) from SKAT before relying on the classification. For more on binding rulings, see our Tax Audit and Appeals Guide →.

Tax consequences of professional status: If classified as a business, you report gambling winnings as B-income (or corporate income if you operate through a company). You can deduct: stakes, entry fees, travel costs to casinos/events, subscriptions to betting data services, software and modelling tools, and a portion of home office costs (if you have a dedicated office). The income is subject to AM-bidrag (8%) and progressive income tax (up to ~52.06%). If you operate through a company, the company pays 22% corporate tax, and you pay tax on dividends or salary from the company.

Online Poker, Betting, and Fantasy Sports

Online poker: Online poker winnings are tax-free for casual players. Professional poker players (who play systematically as a main source of income) may be taxable — see the test above. The distinction between casual and professional applies equally to online poker. If you play on unlicensed (non-EU) poker sites, the winnings are still tax-free (Denmark taxes the player, not the site). However, the deposit and withdrawal transactions may be scrutinised by SKAT under the CESOP rules — banks and payment providers report cross-border payment data to SKAT. Large or frequent deposits/withdrawals to unlicensed gambling sites may trigger a SKAT enquiry.

Betting exchanges: Trading on betting exchanges (Betfair, Smarkets, Matchbook) is classified as gambling (not financial trading) for Danish tax purposes. Winnings are tax-free for casual traders. If you trade systematically with an edge (professional trader), the classification as business income may apply. SKAT has not issued specific guidance on betting exchange trading — the general professional gambler test applies. If your trading involves arbitrage (risk-free profit from price differences), the income may be classified as capital gains rather than gambling winnings — this area is legally uncertain and a binding ruling is recommended.

Fantasy sports: Fantasy sports (Dream11, DraftKings, FanTeam) are classified as prize competitions (præmiekonkurrencer) in Denmark. Winnings are tax-free for casual players if the competition involves skill (not pure chance). If the fantasy sports game is predominantly based on skill (statistical analysis, player selection, team management), the winnings are tax-free. If predominantly chance-based (randomly assigned teams), the operator must hold a Danish gambling licence and the winnings are tax-free. The distinction between skill and chance is complex — SKAT has not issued definitive guidance for fantasy sports specifically. Professional fantasy sports players (who play systematically for profit) may be classified as business income under the same test as professional gambling.

Gambling Operators — Gaming Tax

Licensing and gaming tax: Danish gambling operators must be licensed by Spillemyndigheden (the Danish Gambling Authority). Licensed operators pay gaming tax (spilleafgift) on their gross gaming revenue (GGR — total stakes minus winnings paid out). The rates vary by type of gambling: online casino ~28% of GGR, betting ~20% of GGR, land-based casino ~40% of GGR (slots) and ~30% of GGR (table games), lottery ~28% of GGR, and bingo ~10% of GGR. The gaming tax is deductible for corporate tax purposes (it is a business expense). For more on corporate tax, see our Business Tax Return Guide →.

VAT on gambling: Gambling and gaming services are exempt from VAT in Denmark (VAT Act §13, implementing the EU VAT Directive). This means licensed operators do not charge VAT on their gaming services. However, they also cannot deduct input VAT on their costs (software development, marketing, hosting, employee salaries). The VAT exemption applies to: casino games, betting, lottery, bingo, poker, and other games of chance. It does not apply to: non-gambling services (e.g., restaurant and bar sales at land-based casinos, which are subject to 25% VAT), or to services provided to gambling operators (e.g., software development for gambling platforms — these are B2B services subject to VAT with reverse charge). For more on VAT exemptions, see our VAT Registration Guide →.

Crypto Gambling

Tax treatment: Gambling with cryptocurrency (Bitcoin, Ethereum, etc.) follows the same principles as fiat gambling — winnings are tax-free for casual players, taxable for professionals. However, the conversion of crypto to fiat may trigger a taxable event if the crypto has appreciated in value. Example: you deposit 1 BTC (acquired for 100,000 DKK) into an online casino, gamble with it, and later withdraw 1.5 BTC (worth 200,000 DKK). The withdrawal of 1.5 BTC is not a taxable gambling win (it is tax-free). However, if you then sell the 1.5 BTC for 200,000 DKK, you realise a capital gain of 100,000 DKK on the 1 BTC you originally acquired (sale proceeds 133,333 DKK minus cost basis 100,000 DKK), plus a gain on the 0.5 BTC winnings (cost basis zero, so full sale proceeds are taxable). The cost basis of crypto winnings from gambling is zero (since the winnings themselves were tax-free, there is no cost basis). This means when you sell the winnings, the entire proceeds are taxable as share income at up to 42%. For more on crypto taxation, see our Crypto Tax Guide →.

Related Guides

• Personal Tax Guide → — income tax, rates, deductions
• B-Income Guide → — self-employment, business income reporting
• Crypto Tax Guide → — crypto gambling, capital gains, cost basis
• Inheritance and Gift Tax Guide → — gift tax on winnings given away
• Tax Audit and Appeals Guide → — binding rulings, SKAT audits
• Digital Platform Business Guide → — DAC7 for gambling platforms
• Business Tax Return Guide → — corporate tax for operators