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EUROPEAN COMMISSION RULES ON DANISH ONLINE GAMBLING TAX
Tuesday September 20, 2011 : Lower tax on internet gambling is acceptable, says EC
The enforcement arm of the European Union, the European Commission, approved Tuesday the new Danish online gambling taxes drafted as part of a law liberalising gambling.
The Commission said in a statement that following an in-depth investigation it had found that the law lifting some restrictions on gambling in Denmark, which also allowed for lower taxes for online casinos than for land operations, complied with EU state aid rules.
"The Commission's decision establishes that the lower rate of taxation for online gambling indeed constitutes state aid but 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," said a statement from the Commission, which acts as enforcer and trade regulator in the 27-member European Union.
The EC decision hopefully brings to an end a dispute that has lasted for a year and delayed the implementation of an online gambling regulatory regime in the Nordic country.
Complaints filed mid-2010 by the Danish Slot Machine Association and by one of the terrestrial casinos claimed that the lower tax rate set for online casino operators in the context of the opening of the Danish gaming market had to be considered an illegal State aid.
The European Gaming and Betting Association, a trade group supported by most large European internet gambling groups, commented on the EC decision, saying:
“We are satisfied that this investigation has led the European Commission to confirm that differentiated tax treatment for online and offline gambling activities is justified and is the result of distinct business environments. Online operators are subject to a much higher global competitive pressure than land-based providers. The business model of land-based operators is completely different as casinos in particular operate quasi local monopolies in their specific geographical market”.
Secretary General of EGBA, Sigrid Ligné, added: “Such differentiation proves also to be essential from a tax efficiency perspective. As confirmed by several econometric studies, the total amount of tax collected under a higher tax rate would eventually be lower than the total amount collected on the basis of a tax rate as provided for by the Danish Gambling Tax Act. Uncompetitive regulations based on excessive tax rates and disproportionate licensing requirements do not increase revenue but rather push consumption to the black market as shown recently in France.”
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
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