The European Commission (EC) has thrown out a State Aid complaint lodged by Denmark’s land-based operators that will pave the way for the online gaming industry market to be opened. Land-based bods were majorly pissed at the fact that online operators only need pay a 20% tax on gross gaming revenue whereas they pay up to 75%.
A press release from the Commission read as follows:
A law liberalising gambling in Denmark and at the same time creating lower taxes for online casinos than for land-based ones is in line with EU state aid rules. This is because the positive effects of the liberalisation of the sector outweigh potential distortions of competition.
A duty making the offer of the Danish online providers too expensive would have rendered the liberalisation of the market devoid of purpose.
The Remote Gambling Commission provided detailed evidence to the EC along the way with CEO Clive Hawswood pointing out, “There are obvious differences between the business models employed by off and online operators and the fiscal impositions on those businesses need to reflect that differentiation. In essence, land-based operations compete within physical national boundaries, whereas online companies are part of a highly competitive international environment, and fiscal policy should be set accordingly. There are clear and justifiable reasons for a lower rate for remote operators.”
Originally, Danish gamblers were set to enjoy a regulated gambling industry market by January this year until the State Aid complaint was lodged. Some predicted that the dispute could roll on for as long as two years and Hawkswood added that “hoped that the new regime would now be put in place as soon as is practically possible because it would lead to important benefits for the Danish authorities, licensed remote operators and consumers alike.”
According to a tweet from @GamblingCompliance, the deadline for licenses applications is October 17.