Denmark to increase online gaming tax to 28%
Danish government agrees to implement 8% tax hike on gaming from January 2021
The Danish government has agreed to increase online gaming taxes from 20% to 28% from January 2021.
The proposals were put forward in the government’s 2020 financial budget, with the aim of raising DKK 150m (£17.1m), or DKK 20m per year.
Morten Ronde, CEO of the Danish Online Gambling Association, warned the online market could shrink as a result of the changes, meaning the government would not raise the sums expected.
“I don’t think they have put much thought into it and I don’t think it is viable,” Ronde told EGR Intel. “We really believe that they are going to damage the gambling market and it will shrink.”
When asked if Denmark’s existing operators might consider leaving as a result of the changes, Ronde added: “It is too early to say but I think there are some low-margin operators that will struggle.
“It will be worse for the smaller operators and those which have just entered the market. Some will have to revisit their business models to ask if things can work with a 28% tax, rather than 20%.”
The 20% tax on online gaming has been in place since the market regulated in 2011 and is half the amount of the country’s land-based gaming tax.
Denmark’s market conditions are considered favourable with international operators including Kindred Group, bet365, and Betsson, relying on the country for a significant chunk of European revenues.
“The reaction from existing operators is one of disappointment,” said Ronde. “Denmark is widely perceived as a well-functioning market and the Danish state gains a lot of money from it.
“Meanwhile the consumer protection is held at a high level and there are not many examples of a country where the regulation is working better.
“The government is now at risk of jeopardising this,” he added.