Danish Market to Introduce New Tax Rate for iGaming Business

Home » Danish Market to Introduce New Tax Rate for iGaming Business

Danish Government is set to start a new tax regime for the iGaming operators. The government told that that tax can be increased to 28% on the Gross Gaming Revenue (GGR) for the iGaming Operators. This would bring DKK 150m ($22.3m) tax revenue for the government.

The new tax rate will be introduced from 2021 replacing the 20% tax on GGR. The earlier tax slab was implemented in 2012 when the Danish Government-regulated online gambling.

The government said that online gambling (betting and gaming) are paying lesser tax than the land-based casinos and the gaming machines. Casinos generally pay 45% tax on the GGR and further pay another 30% tax on revenue above DKK 4mn. The Gaming Machines are taxed 41% of the GGR. They pay an extra 30% on revenue over DKK 4000 for the restaurant based machines. For gaming machine halls, the 30% tax applies on for revenue over DKK 250,000.

The increased tax is to regulate the market well. The extra tax revenue would be used to treat the gambling-related problems, said the government. In 2020, the amount can be anywhere around DKK 20m and ultimately rising to DKK 150m.

The Social Democratic Party is leading the minority government in Denmark since June. However, it has the support of other left wings party like Red-Green Alliance, Socialist People’s Party and Social Liberal Party on this tax hike. The additional revenue would be for the healthcare, education, and welfare of the country. There is a plan to create a DKK 25bn Green Future fund that would invest in environmentally friendly business and initiatives.

This comes after the operators voluntarily introduced a new set of conduct for advertising and players protection. Danish Online Gaming Association (DOGA) introduced this from July this year along with Dansk Automat Brancheforening (Slot Machine Operator Association) and Dansk Kasinoforening (Casino operator association).

The Danish regulations are known for the higher standards. However, things have not been jolly good for the Danish market as well recently. The third-quarter revenue of this year fell to DKK 1.61bn majorly due to failing contribution from sports betting and land-based gaming machines.

Source: https://www.igamingbusiness.com/news/danish-government-raises-igaming-tax-2020-budget

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