EC confirms Denmark delay
The European Commission investigates proposed egaming tax rates following complaints from Danish land-based interests.
The European Commission (EC) has confirmed it has launched a formal investigation into whether Denmark’s proposed tax rate for egaming operators would give them an unfair competitive advantage over land-based casinos in the country.
eGaming Review reported last month that the market opening, originally scheduled for 1 January 2011, was unlikely to happen until next summer at the earliest given complaints lodged by the Danish land-based casinos and slot machine association, despite the claims of the Danish Taxation Minister that the dispute could be solved quickly.
The Commission has now confirmed that a formal investigation is required into whether the proposed flat rate egaming tax of 20% on gross win compared to up to 75% for land-based establishments amounts to unfair competition, after it received two complaints this would violate EU State Aid rules.
As part of the process, the EC is also inviting interested third parties, and potentially other Member States, to submit comments and observations with a view to the Commission gaining “a better understanding of the market and especially of the emerging and fast growing market of online gambling services in Denmark, but also throughout Europe and beyond.”
Betsson is also known to have lodged a complaint over the proposed “black period”, requiring all applicant operators under the new legislation to cease all activity in the market until approved. The Danish authorities have yet to comment on this aspect of the legislation, eGR understands.