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DANISH LIBERALISATION CREATES MORE COMPETITION FOR MALTA

Monday, September 26, 2011 : Online gambling delivered 7.82 percent of Malta's GDP in 2008, 11 times higher than the EU’s average of 0.68 percent.
 
The recent news that a European Commission finding supported lower tax rates for Danish online gambling operators than their land counterparts will open up competition for Malta in the licensing jurisdiction stakes, predicts an article in the Malta Times.
 
However, Danish licensees will be still be paying a 20 percent tax on profits (against the 45 to 71 percent imposed on their land equivalents) the article notes.
 
The Danes have already opened applications for online gambling licenses, aiming for an effective date early in 2012 following the Commission's finding that a lower tax rate was justified due to the cross-border and more competitive nature of internet gambling.
 
The Remote Gambling Association, a trade body that represents the interests of major online gambling operators, many of them in Malta, welcomed the Commission’s findings last week and said there were clear and justifiable reasons for a lower rate for remote operators.
 
“In essence, land-based operations compete within physical national boundaries, while online companies are part of a highly competitive international environment, and fiscal policy should be set accordingly,” a spokesman said.
 
According to a green paper published by the Commission earlier this year in a consultation initiative, by 2008 Malta had attracted more than 500 international companies, making very substantial contributions to state coffers. Contributions from the gambling industry amounted 7.82 percent of Gross Domestic Product in 2008, eleven times higher than the EU’s average of 0.68 percent of GDP.



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