Q&A: Mads Peter Veiby, CEO Magnet Gaming

It’s been another busy year in Denmark’s online gaming market, most notably for the exit of UK heavyweight Ladbrokes and the entry of gaming giant 888.

The market was also given a boost when the regulator decided not to extend its NemID system – a regulatory measure which requires those making monetary transactions online to enter their social security numbers and use unique codes before depositing or paying for things – to mobile and tablet transactions.

eGaming Review caught up with Magnet Gaming CEO Mads Peter Veiby to review the past year in Denmark and look ahead to what 2016 holds in store.

eGaming Review (eGR): How have you viewed the progress of Denmark’s egaming market over the past 12 months?

Mads Peter Veiby (MPV): We have seen significant growth in the Danish market this year, particularly when it comes to phone and tablet usage. The decision to not apply the NemID log-in measures, which elongates the customer journey, to mobile and tablet has been a significant factor in this.

This applies to desktop devices at the moment and was going to be the case for mobile and tablet too. But I’m pleased to say that the Danish Gambling Authority has recognised it would be an imposition and so have allowed players to just use their usernames and passwords, as it is in other jurisdictions.

From a personal point of view the decision by Danske Spil to take a 60 per cent share in CEGO, the holding company behind Spilnu.dk (our operator) and Magnet Gaming (our real money supplier) was a significant development too.

eGR: What has been the biggest challenge for operators in the Danish market?

MPV: The biggest challenge by far has been finding a market position. There are only six million of us Danes and with over 30 licensed operators the challenge is to differentiate your offering in order to capture market share. Some have gone after high-rollers, others like ourselves have targeted casual gamers. Others have taken a sports-first approach, while a few have tried to cross-sell to poker players.

In terms of individual operators, Tipico have done well, establishing retail premises to give them a base to push into the online market. The Betsson brands are also very well-positioned. Having increased our market share by 2% I think we ourselves at Spilnu.dk have done well too.

eGR: Do you think online bingo and horseracing licenses should be issued in Denmark? Or should Danske Spil’s monopoly remain?

MPV: I can see the advantages of maintaining the monopoly and I see why it might be beneficial to open it up too, as has been the case with online casino. I think anyone who thinks there’s a clear cut argument on either side is probably wrong. But as I’m not directly involved in either product I think it would also be wrong to adopt a particularly strong position either way.

eGR: What trends do you see emerging in the market in the coming months?

MPV: The obvious trend is the further development of mobile usage. It shows no sign of slowing down. With economy picking up as well I think people will invest in these devices even more and hopefully have a bit more disposable income. I think we’ll also see more peer to peer betting in Denmark in 2016. Social gaming and social media figure quite prominently in people’s lives and I think that is a natural progression.

I’m also excited about the opportunities Smart TVs are now presenting, particularly in a casino environment. It will be interesting to see how live dealer adapts to big screens in people’s living rooms and how slots can be played on those devices too.

eGR: Do you expect more operators to enter the market?

MPV: We’ve recently seen 888 enter the Danish market and I would certainly expect further big operators to follow their lead. It isn’t the biggest market in the world by any means, but it is an affluent one and society is very mobile-focused.

Operators who get it right have got an opportunity, despite the competition, but I would urge them to tailor their content rather than thinking that games that work elsewhere will automatically work in Denmark as well. As ever, content is king.