Denmark to delay online gambling market
Tuesday, December 7th, 2010It will be a little longer before Denmark’s online gambling market is open for competitive business. The deadline for accepting competition from overseas has been pushed back, giving the state-run monopoly more time as the only legal game in town.
Dansk Spil, the Danish internet gambling monopoly, has long been free from competition, but after the European Commission ruled that their monopoly violates EU rules of free trade within member states, they had to change. Still, they allowed a six-month period to prepare, which was needed to do due diligence, scrutinize applicants and more. Some believe that the delay was simply to give Dansk Spil an advantage over the competition.
Though the online gambling market was set to open to competition in January 2011 – which is less than a month away – it has been pushed back to the summer of 2011. The delay is due in part to a number of complaints about the tax rates proposed by the Danish government. Complaints about the taxes have been lodged with the European Commission.
The proposed law, which might end up being changed if it is not approved by the EU, calls for a 20% tax on the gross amount of money won on all games. In addition, there is an annual licensing fee for each online gambling operator that ranges from €7,000 to €200,000. The licensing fee varies depending on the amount of revenue for the gambling website.
Troels Lund Poulsen, who is the Danish Minister of Taxation, insists that there is nothing rotten in the state of Denmark. He plans to go to the European Commission directly to sort out the problem with the tax rate and ensure that the law and tax rates are in compliance with EU law.
