EU Investigates Online Gambling Taxes in Denmark

Danish officials have said that markets would be opened up in their country for online gaming sites. These sites would pay twenty percent of their gross gaming revenue to the Danish government, in addition to state licensing fees. Denmark's land based casinos pay a massive seventy five percent of their gross revenue in taxes.

This large difference in tax rates has caused at least two complaints to be brought before the commission. Some industry leaders have said that the difference in tax rates gives an unfair advantage. Most online casinos operate with far lower overhead costs than the land based casinos so their profits could soar while the land based casinos could struggle.

Many industry observers were surprised by this tax move. In previous cases, European states have established higher tax rates on online casinos in an attempt to protect the land based casinos. The member state governments control much of the gaming industry within their own borders so the rates proposed by the Danish government seem to go against that trend.

The tax move comes as a surprise to many industry observers. In many cases, European states will institute higher tax rates on the online casinos in order to protect the land-based sites. Since the respective member state governments control much of the gaming industry within their borders, the rates proposed by the Danish government seem to contradict that trend.

Last year, Denmark disbanded its state controlled monopoly on casinos. Regardless of this, the small privately owned casinos in the Copenhagen area must pay up to seventy five percent of their gross revenue to the government.

Earlier in May, Danish gaming officials suspended granting online casino licenses. They have announced that they would postpone the launch date from January 1st to a yet to be determined date this summer.