Denmark updates gambling law with banko licence scheme

The regulation of bingo in Denmark is poised for further evolution in 2026, as the government considers formalising oversight for banko, a traditional variant of bingo. This unique form of gambling, often played over local radio broadcasts or walkie-talkies, has long been a popular pastime in Denmark’s rural and community settings. The proposed legislation aims to provide clarity and legal recognition for these games while maintaining safeguards similar to other forms of regulated bingo.

The move comes just a year after Denmark officially began regulating land-based bingo. On January 1, 2025, a liberalised framework for operating land-based bingo and charity lotteries was introduced through an executive order. The new bill under parliamentary review seeks to build upon that framework, introducing banko as a distinct category of gambling with a specific regulatory pathway starting January 1, 2026.

Oversight and regulatory framework

Under the proposed legislation, oversight of banko will fall under Spillemyndigheden, Denmark’s national gambling authority, which already supervises land-based and online gaming activities. Green Minister Jeppe Bruus stated that the primary objective of the bill is to ensure banko games operate legally and with similar safeguards as other bingo products, but without imposing burdensome licence fees that could restrict small community organisers.

To achieve this, the legislation will introduce a revenue-capped online bingo licence designed specifically for small, non-commercial associations. The licence would carry an annual fee of DKK 1,000 (€140), a figure significantly lower than traditional casino licences, making it financially feasible for local community groups. In line with its purpose, the licence will limit turnover to DKK 1 million (€140,000), ensuring that only small associations are eligible to operate under this framework.

Taxation and prize requirements

The proposed bill establishes a 28 percent tax on profits after prize payouts. Additionally, the legislation mandates that at least 80 percent of stakes be returned to players as prizes. These measures are designed to protect participants while maintaining financial transparency for operators.

Applications for the licence are scheduled to open on January 1, 2026, through Spillemyndigheden’s online portal. Applicants will use form no. 1-02: Apply for a walkie-talkie or radio bingo licence. Each applicant will be assigned a dedicated contact person from the regulator to assist with compliance and operational guidance. Licence holders will also be required to submit a compliance report after their first year of operation, confirming adherence to player-protection standards and operational best practices.

Historical context and political support

The idea of a dedicated Banko Bill was first introduced by former tax minister Rasmus Stoklund, who emphasised the enduring role of the game as both a community pastime and a tool for fundraising. In particular, banko has historically served as a valuable social activity in rural areas, fostering community engagement and supporting local charitable initiatives.

Stoklund argued that banko should not be subject to the same financial obligations as commercial gambling ventures. Instead, he proposed the turnover cap and modest licensing fees to ensure that only small associations can legally operate these games, protecting the game’s grassroots character while safeguarding players.

Broader gambling reforms in Denmark

The introduction of banko legislation is part of a wider package of gambling reforms being implemented in Denmark. The government plans to introduce new restrictions on gambling advertising starting in 2027 under the country’s updated Marketing and Advertising Law.

The new rules include a whistle-to-whistle ban on gambling advertisements during live sports broadcasts. Advertisements will be prohibited from appearing 10 minutes before an event starts until 10 minutes after the final whistle. This measure is intended to reduce the visibility of gambling marketing to young and vulnerable audiences.

Further restrictions will limit the use of celebrities and influencers in gambling campaigns. Live odds will no longer be displayed on stadium banners, and gambling advertisements will be banned on public transport and in the immediate vicinity of schools. Advertisements featuring individuals under the age of 25 will also be prohibited.

Educational institutions will be tasked with blocking access to gambling websites, reinforcing efforts to prevent underage gambling. Additionally, a dedicated committee will be established to draft regulations for gaming influencers on streaming platforms such as Twitch, ensuring that digital marketing practices adhere to responsible gambling principles.

Changes to online gambling incentives

Another key element of the reform package is the prohibition of “free money games” as welcome bonuses. This measure aims to reduce the appeal of gambling products that offer incentives to players in ways that could encourage excessive participation. By aligning bonus structures with responsible gambling practices, regulators hope to minimise potential harm while maintaining a fair playing field for operators.

Implications for community and commercial operators

For small community associations, the banko legislation offers an opportunity to operate legally with minimal administrative and financial burdens. The modest annual fee, turnover cap, and clear compliance requirements create an environment where community organisers can continue traditional fundraising activities without facing prohibitive costs.

For larger commercial operators, the legislation underscores Denmark’s continued commitment to distinguishing between commercial gambling and community-based games. By maintaining separate regulatory pathways, the government aims to balance industry growth with social responsibility and consumer protection.

Ensuring compliance and player protection

Compliance is central to the success of the proposed regulatory framework. Licence holders must submit annual reports detailing operational procedures, prize distributions, and adherence to player-protection standards. By implementing these measures, the government aims to prevent exploitation and ensure transparency in banko operations.

The revenue cap and prize payout requirements also provide a safeguard against excessive commercialisation, ensuring that the games remain accessible and equitable for players. Spillemyndigheden’s role as a regulatory overseer ensures that operators who fail to meet these standards can face appropriate enforcement measures.

Future outlook for gambling regulation in Denmark

Denmark’s approach reflects a broader trend in European gambling regulation: creating tailored frameworks for specific types of games while prioritising consumer protection and responsible gambling. By formally recognising banko as a distinct category, the government acknowledges its social and cultural significance while integrating it into the regulated gambling ecosystem.

Looking ahead, operators, community associations, and players can expect a more structured and transparent environment. The combination of licensing, taxation, and advertising reforms positions Denmark as a model for balancing cultural gaming practices with modern regulatory standards.

As the bill progresses through parliament, further refinements are likely, particularly regarding operational requirements, compliance reporting, and integration with existing gambling legislation. The ongoing dialogue between policymakers, regulators, and stakeholders ensures that the legislation is both practical and protective of public interests.

Conclusion

The proposed banko legislation represents a significant step in Denmark’s gambling regulation, formalising a traditional community game while introducing modern safeguards. By offering a low-cost licensing option and clear operational guidelines, the government supports small associations while protecting players.

At the same time, the broader reforms targeting advertising, influencer engagement, and online incentives signal Denmark’s continued commitment to responsible gambling and consumer protection. Together, these measures ensure that banko and other forms of gambling operate within a legal, regulated, and socially responsible framework, preserving the cultural and charitable role of community gaming for years to come.

FAQs

What is banko in Denmark?
Banko is a traditional form of bingo played over local radio or walkie-talkies, often used for community fundraising.

When will banko become formally regulated in Denmark?
The legislation is scheduled to take effect on January 1, 2026.

Who will oversee banko regulation?
Spillemyndigheden, Denmark’s national gambling regulator, will supervise all banko operations.

What is the annual fee for a banko licence?
The licence fee is set at DKK 1,000 (€140) per year for small non-commercial associations.

Is there a turnover limit for banko operators?
Yes, turnover is capped at DKK 1 million (€140,000) to ensure licences are available only to small associations.

What tax applies to banko profits?
A 28 percent tax will be levied on profits after prize payouts.

Are there prize payout requirements for banko?
Yes, at least 80 percent of stakes must be returned to players as prizes.

How will applications be submitted?
Applications open on January 1, 2026, via Spillemyndigheden’s online portal using form 1-02.

What changes are coming to gambling advertising in Denmark?
Whistle-to-whistle bans, restrictions on celebrities and influencers, bans near schools, and limits on under-25 participation are planned.

Will free money games be allowed under the new rules?
No, “free money games” as welcome bonuses will be prohibited under the new regulations.