The European Commission has given Denmark permission to establish a market for online gambling, the Financial Times has reported.Operators have suggested that the ruling suggests a way forward for other European countires in terms of their gambling regulations.
Under Denmark's Gaming Duties Act, it has been proposed that operators be subject to a 20 per cent tax on gross gaming revenues.
|
The Commission dismissed suggestions that the lower rate constituted state aid, explaining it was compatible with European Union rules "because the positive effects of the liberalisation of the market outweigh the distortions of competition brought about by the measure".
And according to the Remote Gambling Association (RGA), which represents online operators, there were logical reasons to impose different tax rates between the land-based and online forms of gambling.
Clive Hawkswood, who represents the RGA, commented: "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."
Posted by Andre Dixon
Email this page
Print this page