EUROPEAN COMMISSION REJECTS STATE AID COMPLAINT


THE EUROPEAN COMMISSION has rejected a State aid complaint that was lodged by a number of land-based operators in Denmark challenging the lower tax rate due to be imposed on online gambling firms via the Danish Gaming Duties Act of 2010


THE EUROPEAN COMMISSION has rejected a State aid complaint that was lodged by a number of land-based operators in Denmark challenging the lower tax rate due to be imposed on online gambling firms via the Danish Gaming Duties Act of 2010.

The UK's Remote Gambling Association (RGA). which supported the Danish government's ability to vary its gambling tax rate where there are clear and justifiable reasons to do so, provided detailed evidence to the European Commission and welcomed the judgement and its wider implications.

The European Commission deemed the Danish tax policy compatible with the internal market, which is a view widely supported by the remote gambling industry.

"There are obvious differences between the business models employed by off and online operators and the fiscal impositions on those businesses need to reflect that differentiation." said Clive Hawkswood, Chief Executive Officer for the RGA.

"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. There are clear and justifiable reasons for a lower rate for remote operators.

"Obviously, this has implications for other jurisdictions and their fiscal policies, both those that have opened their markets and those that are planning to do so in the near future."

Hawkswood stated that the RGA could now "not rule out taking action against any European Union jurisdiction which has, or intends to impose an unjustified tax rate on remote operators".

"Those favouring offline monopoly operations' fiscal position should take note of this judgement," said Hawkswood.

With regards the opening of the Danish online gambling market, Hawkswood explained that "the State aid process has unfortunately delayed the introduction of the new Danish remote gambling legislation", although he hoped that "the new regime would now be put in place as soon as is practically possible because it would lead to important benefits for the Danish authorities, licensed remote operators and consumers alike".
 
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