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Danish Tax Ministry proposes Gambling Act amendments

The Danish Ministry of Taxation has proposed a range of amendments to the country’s Gambling Act, to support greater powers for the Spillemyndigheden, the Danish Gambling Authority (DGA).

Earlier this year, the DGA took on new powers when it was given the remit for countering match-fixing and protecting sporting integrity, taking on this task from Anti-Doping Denmark – the bill proposed by the tax office aims to support this agenda.

The Ministry has suggested that the DGA should be given the ability to obtain ‘necessary information’ and to ‘confidentially exchange information regarding match-fixing to support its integrity efforts.

It has also been suggested that the DGA be granted greater sanctioning abilities, such as the power to issue injunctions and reprimands, and to publish sanctions. This would extend to gaming suppliers, which could face a revocation of their licence in the event of regulatory violations.

Lastly, if approved, the proposals will give the DGA more authority over data processing to better analyse gambling data and obtain a unique player ID from game providers, which would allow for better monitoring of match-fixing and money laundering risks.

Taking on these new powers would ultimately require more funding, the Ministry has acknowledged, providing estimates of expenses. It is projected that the financial burden would rise each year, starting with DKK 800,000 in 2023, DKK 2.2m in 2024, DKK 4.7m in 2025, DKK 5.2m between 2026-2031 and DKK 3.9m in 2032 and onwards.

To finance this, the Ministry has suggested new fees on slot machines, specifically changing the manner by which fees are paid. Additionally, the government has suggested introducing a new licence for B2B suppliers, complete with an updated annual fee. 

As it stands, slot machine fees are paid annually per machine but under the Ministry’s proposals, this would be changed so the fees depend on a licence holder’s annual taxable gambling income.

Tax authorities estimate that these increases would amount to DDK 1.3m in 2024 and DKK 3.5m in 2025 and onwards. Meanwhile, the supplier licence would amount to DKK 1.3m in 2024, DKK 2.6m between 2025-2031 and DKK 2.4m from 2032 onward.

The legislation is currently in a consultation phase, with the Ministry engaging with a range of stakeholders in gambling regulatory reform. This includes the industry itself, such as the Land-based Gambling Association Denmark (LGA) and Casino Association trade bodies. 

Other organisations active in the hearing stage include the  Danish Sports Confederation, the Danish Vending Machine Industry Association, the Danish Trot and Gallop Union and the country’s Bar Association.

Should it be approved by Danish legislators, the Bill – and its amendments to the Gambling Act – would come into force on 1 July, with the new supplier licence and fees for slot machines expected to become effective on 1 January 2025.

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