Posted 12/15/10 : European Commission launches probe into Denmark's online gambling tax proposals
The European Commission launched a formal investigation Tuesday into whether Denmark's proposed low tax regime for online gambling sites gives internet operators an unfair advantage over bricks and mortar casinos, reports the Dow Jones news agency.
Denmark is opening up its gambling markets by introducing a more open regulatory and licensing regime for Internet casino games, planning to set a flat tax of 20 percent on online gross gambling revenue, compared with up to 75 percent for land-based casinos and gaming halls.
The taxation proposals have been the subject of complaints from land-based operators.
The commission has doubts at this stage whether the different treatment entails an unjustified competitive advantage for online casinos, it said in a statement. It has received two complaints alleging the planned measure violates EU rules, it added.