Brussels, 20/09/2011 (Agence Europe) - The European Commission concluded, on Tuesday 20 September, that a law liberalising gambling in Denmark and at the same time creating lower taxes for online casinos than for their land-based equivalents is in line with EU state aid rules.
Denmark adopted a law in 2010 liberalising gambling, hitherto a state monopoly. The coming into force of the law was postponed while clearance from the Commission was awaited. Under the Danish Gaming Duties Act, online providers of casino games and gaming machines will be subject to a duty of 20 % on the gross gaming revenue (GGR stakes minus winnings), compared with up to 75 % for land-based casinos and gaming halls.
The Commission's decision establishes that the lower rate of taxation for on-line gambling indeed constitutes state aid. However, it finds it compatible with EU rules, because the positive effects of the liberalisation of the market outweigh the distortions of competition brought about by the measure.
Those member states which have already liberalised their gambling markets normally apply a lower duty for the online provision of services, compared with land-based casinos: the UK, for example, has a 15 % tax rate on GGR for online gambling and up to 50 % for land-based casinos. Other member states currently in the process of liberalising their gambling markets also intend to provide for different tax rates, for example, Spain, Greece and Germany. (LC/transl.rt)