Gaming law
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Summary
On 1 January 2012, the Danish Act on Gaming is coming into force after having been temporarily postponed as a consequence of a complaint filed with the EU Commission alleging that the Act amounted to illegal state aid, since the tax on land-based casinos are higher than the tax on online casinos. However, with the clearance from the Commission under state aid rules, the liberalisation of the Danish gaming market now becomes a reality.
The Act includes provisions to end the long-standing gaming monopoly and to liberalise the Danish gaming market. Until now, the Danish gaming market has been regulated in such a way that commercial actors were excluded, only allowing certain public benefit organisations and state-controlled companies to offer gaming activities. The Act is part of a legislative package also containing an Act on Duty on Gambling, an Act on Distribution of Profits from Lotteries and Betting on Horse and Dog Racing, and an Act on Danske Spil A/S.
Gaming Licenses
Any type of gaming will require a license. Under the Act, there are nine different types of licences depending on which kind of gaming the licensee wishes to provide. Based on an application, licenses are granted by the Gaming Authority unless otherwise stated. An exception is made for gaming where no stake is paid in order to participate, in which case a license is not required. Additionally, a license is not required if the gaming in question is exempt from the license requirement pursuant to the Act or another act.
The availability of a license is dependent on the type of gaming in question, e.g. lottery, wager or casino. Some types of gaming licenses are exclusive and only granted to a sole provider, including lottery or horse and dog wager licences which will be granted exclusively to Danske Spil A/S, while other types may be granted to an indefinite number of providers, including wager, land-based casino and online casino. The duration of the various licenses varies, for example up to five years for wager and online casino, and some may be granted for an unlimited duration, e.g. a horse and dog wager.
Terms for obtaining Licenses
Licenses may be granted to both persons and companies. Licenses may only be granted to persons and companies if it is probable that they will be able to provide gambling in an economically safe manner and are professionally qualified. A license may not be granted if a conduct causing reasonable doubt about the sound running of the company has been shown by the applicant itself, members of the management or the board of directors or others who may exercise a controlling influence on the daily operations of the company in question.
Taxation
Gambling revenues are subject to the Act on Duty on Gambling. Three different kinds of taxation may apply depending on the type of gambling in question, i.e. taxation of the gross gambling income, taxation of winnings and taxation of the payment sums. Persons and companies who are subject to taxation pursuant to the Act on Duty on Gambling must register their taxable activities with the Danish Tax and Customs Administration.
The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions of considerations.