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The Danish Government has announced plans to merge the state-owned gambling operator Danske Spil and the Danish Class Lottery (Danske Klasselotteri).

According to the government, the merger would create a number of major benefits for both operators related to digital transformation and responsible gambling commitments, as well as providing opportunities for operating savings.

The government said that as both digitalisation and responsible gambling require strategic management and investments, a single entity would be able to create a better framework and, as such, a combined operation would therefore be more efficient and cost-effective.

Should the merger go ahead as planned, Klasselotteri would continue to operate with an independent identity, retaining its current brand, products and customers.

“The state’s gaming companies have an important role in relation to contributing to a balanced and responsible gaming market in Denmark,” Danish Finance Minister Nicolai Wammen said.

“I expect that a merger of the two companies can create operational benefits while supporting an even better framework when it comes to digitisation and responsible gaming. I am also pleased that we can contribute to ensuring the Klasselotteri has a stable and efficient framework in the Danske Spil Group in the future.”

The Ministry of Finance will now work with Danske Spil and the Klasselotteri to prepare a proposal for the merger, including a final law construction and business model.

The government will subsequently seek the necessary authority and approvals to complete the merger and, subject to securing these approvals, the merger is expected to complete before the end of 2021.