The Danish government has revealed plans to raise the level of tax paid by igaming operators in Denmark, which is due to come into effect in 2021.
Operators will now pay tax equal to 28% of gross gaming revenue, up from the previous 20%, which is expected to generate DKK150m (£17.1m) in tax revenues.
Denmark’s Social Democratic Party-led minority government has received the support from a number of other left wing parties such as the Red-Green Alliance, Socialist People’s Party and Social Liberal Party to pass the budget.
It is hoped that by raising the tax, additional funding can be supplied towards problem gambling support initiatives, as well as increased efforts to better regulate the market which opened up in 2012.
The government emphasised that the level of online tax still remained lower than that imposed on land-based casinos and gaming machines. Casinos pay a 45% GGR tax, and a further 30% on revenue above DKK4m, while gaming machines pay 41% of GGR as well as 30% on revenue over DKK4,000 for restaurant-based machines, and the same levy on revenue over DKK250,000 in gaming machine halls.
Earlier this year, gaming operators in Denmark voluntarily agreed to a new code of conduct which seeks to establish a definitive benchmark on gambling industry practices, with regards to advertising, reducing problem gambling harms, combined with comprehensive consumer protections.
The enforcement of the code by online gambling operators will be monitored by the Danish Online Gambling Association (DOGA). Whilst licence holders in the area of gaming machines will be monitored by the Dansk Automat Brancheforening (Danish gaming machine industry association) and land-based casino by the Dansk Kasinoforening (Danish Casino Association).
Source:Sbcnews