Denmark's new gaming law, which was supposed to come into effect on January 1, has stalled following complaints filed with the European Commission filed by the Danish slot machine association and several land-based operators.
The new law, which was introduced to the Danish Parliament in March last year, was intended to open up the gambling market to online operators. However, land-based casinos were up in arms when it was revealed that the online gaming tax rate would be set at 20 per cent on gross win, compared with a rate of up to 75 per cent that is levied against their own earnings.
Arguing that this in fact constitutes a form of state subsidisation, the land-based group called on the Commission to investigate whether the new legislation violates European state aid rules. Despite suggestions that the Commission would side with the Danish government given the amount or tax revenue at stake, it announced on December 14 that it would indeed be launching a formal investigation - something that could take months.
This may of course be only a temporary reprieve for the country’s land-based casinos that have had to contend with high rates of taxation, a partial smoking ban and the effects of the economic downturn for the last few years. There is hope, however, that if the Commission reaches a favourable conclusion, there will at least be parity between the rates of taxation for both market sectors.
