Different taxes for land-based and online casinos

25 December 2010 – By Cristian Dragomir

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In most of the countries where online casino gambling is legal, the taxes for land-based establishments are usually lower than the ones for internet casinos. This is put in place in order to keep land-based casinos in business. International policies also tend to give land-based establishments a more suitable competitive environment by promoting higher taxes for online casinos. Contrary to this, in Denmark land-based casinos gambling establishments pay much higher taxes than online casinos.

In order to deal with this situation, the European Commission launched a formal investigation. Land-based gambling companies are paying 75 percent in tax in Denmark, while online casinos that operate in this country only pay a 20 percent tax rate. Complaints regarding the low tax rate of online casinos in Denmark were made by other European countries and have been sent to the European Commission.

After the European Commission finalizes her investigation we will find out if the tax scheme gives online casinos an advantage over land-based gambling companies. If this fact is proved to be true, Denmark will need to make some changes in her gambling tax policies.

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