Danish Online Gambling Law Hits A Speed Bump

Their was a unanimous passing of the Danish online gambling law through parliament recently, but the new gambling law has hit a speed bump with local gambling operators already filing a complaint due to tax issues within the law. This new law would tax online gambling in
Denmark at 20%. This is a crushing tax for any gambling operator because their are so many operators that pay less than 3% tax on gaming revenue from known tax havens.

While online gambling operators would need to pay 20% tax, it’s much less than land-based casinos that continue to pay 45%-70% tax to the government. The land-based operators want the same rate that will be given to online operators.

The law was scheduled to go into affect at the beginning of 2011, but this tax issue may create problems and put a delay on it’s implementation. Their are also issues with the government enabling ISPs to block online gambling sites that aren’t licensed by the Danish government. This would amount to censorship of the Internet and European Union has asked that it be removed.