EUROMAT says Denmark igaming tax not justified

EUROMAT, the European Gaming and Amusement Federation, has followed up last week’s announcement by the European Court of Justice (CJEU) justifying the tax differential between offline and online gambling in Denmark’s regulated igaming market by expressing its disappointment and pointing out that the “ruling fails to either confirm or reject the discriminatory tax regime proposed by Denmark”.  

The CJEU last week maintained the igaming tax for Danish-licensed operators at a flat rate of 20%, land-based operators can be taxed at up to 75% in Denmark.

EUROMAT and other opponents had challenged Denmark’s the igaming tax framework that set out the different taxation levels. The tax levels were established to ensure as many Danish consumers as possible were channelled towards regulated sites. The Court also confirmed that EU Member States would be able to continue setting a their own tax levels for online gambling.

EUROMAT’s President Annette Kok said: ‘Today’s ruling fails to address whether discriminatory state aid, as proposed by the Danish law, is justified. We are disappointed that there remains a lack of legal certainty on this point.

We believe that favouring online companies with lower tax rates will simply distort the marketplace in Europe at the expense of our already highly regulated and highly taxed  members and the 250,000 European citizens they employ.”

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