Malta Faces Serious Competition from Denmark in Terms of Tax Rates
Malta, which is establishing itself in the online gambling industry, will soon face tough competition from Denmark, which is all set to issue gambling licenses to its online gambling platforms. This will be done in accordance with a new regulation which is expected to operate in Denmark from next year. The new law was approved recently after an investigation of nine months was carried out by the European Commission. The inquiry was carried out with the aim of determining whether the law in question is capable of providing the industry with state aid.
According to the new regulation, online gaming operators will pay a tax of 20% while those operating land based casinos will pay a tax between 45% and 71%. The European Commission justified its policy to implement different tax structures for online and offline gambling. It stated that the environment of online gambling is far more competitive than land-based. Operators of land-based casinos are also privileged as they have the security of the jurisdiction under which they function.
Types of Licenses to Be Provided
Operators of online forums have the option of choosing one of the two licenses provided by the Commission. Through one license, site operators will be eligible to offer products of sports betting both offline and online. Some of the betting services that can be offered are pool, exchanges, spread and fixed. Bingo and horse racing will be offered by the Danske Spil which is state owned.
The second license will allow internet casinos to offer their games by paying a flat 20% tax. It will be calculated on the gross win of all the games offered by a casino. Some of the games on which the taxes will be levied are blackjack, online roulette, slots, bridge and whist.
Views on the New Regulation
RGA’s spokesperson stated that the decisions taken by the European Commission are justified. The Gambling Association supported the imposing of different tax rates for online and offline gambling.
A prominent operator of the e-gaming industry of Europe also spoke in favor of the Commission’s decision. Lotteries and Gaming Authority’s spokesperson said that this kind of a regulation was expected.