EU Gives Denmark the Green Light to Open Online Gambling Market


10/05/2011
By Maria McCoyGoogle

 

The European Commission has given Denmark the green light to establish their own market for online gambling.  The Danish Gaming Duties Act which proposes that casino operators who offer online casino and gaming machines should be taxes 20% on gross revenues (the profit the casino earns after paying out winnings).  This is quite low compared to the 75% tax levied on some Danish brick and mortar casinos.  The European Commission investigated this ruling after complains from current casino operators who complained that the proposal were equal to these casinos receiving state aid (in the form of tax breaks). 

 

Interestingly enough, the European Commission found that even though it was undeniable that such tax breaks were indeed state aid that because “the positive effects of the liberalization of the market outweigh the distortions of competition brought about by the measure”, they deemed the act as acceptable according to EU law.

 

Those speaking on behalf of online casino operators are happy with the law and feel that it sets a good example for how other European countries could regulate online gambling.  Clive Hawkswood of the Remote Gambling Association (one such organization) argued that online casinos faced a highly-competitive international market whereas land-based casinos only have to compete within certain physical boundaries and therefore felt that this act was justifiable.

 

 


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