Apart from those countries across the globe’s lawmakers who are increasing the tax rate of online casino sites in order to secure the interests of land-based casinos, the country of Denmark acts in contrary. Earlier this month, they had decided to deviate from the usual norm and offered a lowered tax rate to online casinos operating within the country’s borders. But unfortunately, the European Union is not pleased with this decision.
It was on Tuesday, December 14, when the European Commission conducted an investigation on Denmark’s current tax rates for online gambling operators. On the industry’s current state, online casinos are required to pay only 20% tax to the government while the country’s land-based casinos must pay 75% or more. The EC is concerned about land-based casinos losing business to online operators. While this is only a natural progression that comes along with the online gambling industry, the commission believes that the government is actively trying to give online casinos a significant advantage over their land-based counterparts.
With accordance on the said investigation, the European Commission has notified Denmark that they have received numerous complaints from other European members stemming from their proposed low tax rate. Now, it is up to the European Union to decide whether or not the low tax rate in Denmark gives a competitive advantage to online operators.
In addition, the commission is also encouraging other EU members to share their opinions in order get a well-rounded perspective on the issue. The Commission will then take those opinions into account before a ruling is made. Denmark decided in 2009 to end their monopoly on gaming. The new tax rate is set to take effect January, but the Commission must first approve the rate.
Most countries around the world have opened their online gambling markets at the urging of the European Commission. European countries have responded to the wishes of the EC, but the U.S is one of the countries that is still ignoring the International trading agreements between EU members with their online gaming laws.