Denmark opening delayed until summer 2011
The opening of Denmark's egaming market has been delayed by a complaint over tax rates to the European Commission.
The Danish Gambling Board has confirmed the opening of the country’s egaming market is unlikely to happen until next summer due to a complaint over the proposed tax rates to the European Commission.
Denmark, which had intended for the market to be open by 1 January 2011, is proposing a flat tax rate of 20% on gross win across all products, with an annual licence fee of between 7,000 to 200,000, based on the level of gross win. The statutory standstill period for the European Commission to review the draft law ended on 11 October, during which time the complaint over tax rates was lodged, eGR understands.
On Friday, the Danish minister of taxation said he was intending to travel to the European Commission in Brussels at the earliest opportunity to solve the pending tax complaint, as he believed that the Danish law draft, including tax rates, were in accordance with EU law. He said the Danish government was now aiming for the law to come into force “before the summer”, after which time the application process would be opened.
Operators including Betsson, Ladbrokes and Bet24 have criticised the high level of the proposed tax rates, as well as several other aspects of the draft framework, including the proposal to keep certain products within the remit of monopoly incumbent, Danske Spil. Betsson is known to have lodged a complaint with the Commission over the proposed “black period”, requiring applicant operators to cease all activity in the market until approved.