DENMARK Law and Practice Contributed by: Frederik Bruhn, Rasmus Theis Madsen, Robert Jønsson and Tim Krarup Nielsen, HortenDahl Law Firm
8.2 Organisations and Initiatives to Promote Women’s Sport Organisations Driving Development Football has been a key driver of the growth in wom - en’s sports, supported by DBU initiatives aimed at strengthening the women’s game. DBU has worked to enhance visibility and provide professional opportuni - ties for female athletes. The Danish Women’s Division Association (KDF) plays a pivotal role in advancing women’s football in Den - mark. Representing elite clubs, KDF collaborates with DBU to improve marketing, league structures and the overall profile of women’s football. 9. Esports 9.1 Development and Growth of Esports Esports has experienced significant growth in Den - mark, with the country establishing itself as one of the most developed esports markets globally. However, in recent years, the Danish esports sector has faced financial pressure, including reduced sponsorship rev - enue and organisational restructuring. Governance and Institutional Framework Esports is not recognised as an independent official sport by DIF. As a result, esports organisations do not benefit from direct DIF funding, and esports is not subject to DIF’s general governance framework. However, DIF has adopted another approach to esports by integrating esports disciplines within exist - ing member federations rather than recognising a ded - icated esports federation. Examples include e-cycling under the Danish Cycling Union, and e-racing under the Danish Automobile Sports Union. Alongside this, the national esports organisation, Esport Denmark, plays a central role in the develop - ment of esports, and receives public funding from the Danish Ministry of Culture. 9.2 Key Trends and Notable Deals in Esports Recent trends include the following.
• Investment: Danish esports organisations have attracted significant investment, particularly in team infrastructure and talent development. • Professionalisation of contracts: there has been a shift towards structured player contracts, resem - bling traditional sports agreements. • Expansion of esports events: Denmark hosts large- scale esports events, reinforcing the country’s position as an esports hub.
10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs) Overview of the NFT Market
The NFT market in Denmark, as in many other jurisdic - tions, initially experienced a rapid rise, particularly in 2021 and early 2022, as clubs, athletes and brands sought to capitalise on digital assets. However, the market has since declined significantly, with many NFT collections losing their value. Use of NFTs in Sports Danish football clubs and brands have used NFTs in various ways, including licensing agreements with third-party platforms to create and sell NFTs featur - ing player images, match highlights or digital collecti - bles. However, NFT adoption has been most prevalent within esports, as the digital nature of the industry aligns naturally with blockchain-based assets. Tax Treatment of NFTs in Denmark In terms of risk regarding the use of NFTs, the Danish tax treatment should be taken into consideration. The Danish tax authorities have only provided limited guid - ance on the taxation and VAT obligations related to the issuance and trading of NFTs so far, specifically stat - ing that the creation and sale of NFTs incur tax liability. 10.2 AI AI Regulation in Denmark Denmark follows the broader European regulatory framework for AI, particularly the EU AI Act, which establishes risk-based categories for AI applications. AI used in sports, such as performance analytics, inju - ry prevention and tactical decision-making, generally falls into the lower-risk categories and is subject to
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