ECJ ruling set to determine Danish gambling tax rates

The European Court of Justice (ECJ), is set to deliver its ruling on Danish online gambling taxation rates. Danish gambling authorities currently set a different tax rates between retail and online operators.

The ruling was brought to the ECJ by Denmark’s Royal Scandinavian Casino, who filed a complaint against Denmarks gambling authorities for unfair tax pricing relating to 2011 newly introduced tax regulations.  Royal Scandinavian challenged the authority under European business law and practices, for placing a lower rate of tax for online betting and gambling operators, who were targeting Danish customers.

Current Danish gambling tax frameworks sees retail/offline operators pay as much 70% tax rates on operations, compared to the 20% imposed on online operators.

Denmark had opened its online gambling market in January 2012, amid protest from its land based operators, who claimed unfair business practice and conditions, which would be favourable to offline and potentially offshore operators.

Royal Scandinavian had created a land based operator syndicate to challenge the authorities existing framework.

The ECJ is set to make its judgement on the 26 September, with the ruling expected to set a precedent which could be inherited throughout the European Union.

Royal Scandinavian and other Danish land based operators appear confident that the ECJ will rule in favour for their precedents and require the Danish authorities to change their terms of taxation.