Is Copenhagen the new Las Vegas of Europe as game is up for the Danish State betting monopoly?
On 20 September 2011, the European Commission concluded after in-depth investigations that a law liberalising gambling in Denmark is in line with EU state aid rules. Reactions to the ruling have been overwhelmingly positive.
The approval from the European Commission means that a legal framework can be put into force with effect from 01 January 2012. This framework consists of four acts, seven executive orders and one annex with only one act falling under the jurisdiction of the Danish Gambling Authority (Spillemyndigheden). A new opdated guide is also published for private individuals and businesses who want to provide betting and online casino. A version of the guide translated into English will be available at the website of Spillemyndigheden at the end of September. It should be noted that the Danish version of the document is the only applicable and authentic version. As a result of the entry into force of the said legal framework, from 01 January 2012, foreign gaming companies will be allowed to operate legally in Denmark as long as they file for a proper business license and pay taxes. Under the new regulations, both foreign and domestic online gaming companies will pay a 20 percent flat tax on gross earnings. Affiliates should also be aware of the rules will apply to them. The ruling will also give the tax authority, Skat, the right to go after foreign businesses operating in Denmark without the proper license and collect taxes from them or block their websites.
On September 22, 2011 the Danish Gambling Authority published the forms that are needed when applying for a gambling license. Operators who want to provide gaming in Denmark from January 1, 2012 must submit an application for betting and online casino licenses to Spillemyndigheden no later than October 17, 2011. Application after this date should expect a later starting date. Application forms are available on the webpage of Spillemyndigheden.
From the Guide on Betting and Online Casino:
[...] Affiliates does not need a license if they only market the gaming operator. [...] The general consumer protection and marketing regulation and the Gaming Act’s rules on marketing also applies to affiliates. Affiliate can incur liability under these rules.[...]
Spillemyndigheden (The Danish Gambling Authority)
Press release from the Danish Ministry of Taxation
Press release from the EU Commission
Guide on Betting and Online Casino (in Danish)