Concern over Denmark’s tax increases
The European Gaming and Betting Association (EGBA) expressed concern over Denmark’s plans to change its taxation since the Danish government aims to raise gross gaming revenue tax from 20% to 28% by 2021.
EGBA cautioned that such an increase could harm channelisation and aid illegal offshore gambling. H2 Gambling Capital reported gross gaming revenue for the licensed operators already dropped by 17% in 2020. And in January, the country’s gambling market had to deal with limited deposits.
With the new tax, it’s likely that by 2024 channelisation will drop to 76% from the current 88%. Revenue for operators would also drop by almost 25%, losing 4.5 billion Danish Kroner (£537.512 million).
Maarten Haijer, secretary general of the EGBA, said, “There is a delicate balance to be struck between taxation levels and control of the market. If taxes are too high, customers will look for more competitive websites in the offshore market.”
H2 suggested such a high increase in taxes would increase offshore gambling in the country by nearly 80%. However, analysts suggested the tax could be raised to 22%; revenue would increase but it wouldn’t drastically impact onshore operators either.
Haijer added, “Legislators should beware of the entirely predictable consequences of a substantial tax increase and balance their monetary priorities against the interests of the Danish consumer.”
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