by Renee Israel
EU regulators have given the go-ahead for Denmark to implement a lower tax
rate for online gambling operators than for land-based operators.
The decision comes following an investigation that was undertaken in response
to complaints from the land-based gambling industry that Danish online gambling
taxes constitutes aid from the state.
Denmark is one of the highest taxing countries in the EU. They suggested a 20
percent flat tax rate on all gross revenue from online gambling operators. This
is compared to the hefty 75 percent tax rate that is applied to land-based
gambling operators.
The land-based gambling industry has complained about the discrepancy in tax
rates for the two industries. Effectively, this decision has freed all EU member
states to require a lower tax rate for online operators than for land-based
operators.
The statement issued by the European Commission following its investigation
stated that the investigation found a law that removes many restrictions
connected to online gambling in Denmark and that the lower Danish online
gambling taxes compared to land-based operators is in compliance with rules set
out by the EU.
The statement continued that the laws in Denmark are compatible with the EU
laws due to the many advantages that are realised through the liberalisation of
the online gambling market.
Online Gambling Operators Seek Danish Licenses
The new online gambling laws in Denmark allow online operators to offer
casino games, real money poker, sports betting and bingo. Online gambling
operators have been praising the steps taken by Denmark and it is likely that
other EU member states will follow in their footsteps. A number of online
sportsbooks and casinos will now begin the process of applying for a Danish
license.
Betfair has indicated that they supported the EU decision and would be
seeking a Danish gaming license. Betfair also commented that the decision by the
EU regulators indicates how European gambling should operate and what
legislation should be like.
The benefits of the Danish legislation will be will be available for Danish
operators, as well as international ones. Benefits include transparent and
competitive gaming in a safe and secure environment.
European Lotteries on the other hand came out strongly against the decision,
arguing that the continued liberalisation of the online gambling industry would
result in an increase in problem gambling. It argued that taxation for online
operators and land-based operators should be equal. The European Lotteries do
not benefit from the new legislation.
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