Danish Gambling Laws Hit Snags on Way to Full Legalization

Despite their recent unanimous passage through Denmark’s parliament on June 4, the new Danish gambling laws must now be resubmitted to the European Commission after the country’s own land-based casinos and gaming providers lobbied a complaint regarding fair taxation. 

Under the new law, online gambling in Denmark would be taxed at a 20% rate. Land-based casinos currently pay 45% to 75% in taxes to the national government. Danish Gaming Association (DAB) director Gunnar Sorenson explained that “If two gambling companies do not have the same tax treatment, then the Danish government is effectively supporting the online gambling companies.”  

The new law also permits licensing and taxation of online gaming operators in the recent fashion of European Union countries liberalizing their gambling laws. The liberalization was scheduled to go into full effect in January 2011 and may still happen by this time, but the bill has been amended to include a provision which allows the taxation minister to choose a new date for implementation if necessary. No estimate as to the date has been given.  

The recent legal situation in Denmark for Internet gaming has been a bit confusing lately. Recently, Danish law recently had to be overhauled at the European Commission’s insistence to eliminate provisions regarding ISP blocking of online gambling sites. This was followed by the passage of the June 4 bill and the subsequent complaint. 

Meanwhile, the former state Internet gambling monopoly Danske Spil was forced to retract its contract with Party Gaming to provide Danish poker rooms online after a complaint from Playtech about unfair tendering procedures. Party Gaming plans to resubmit its tender bid.