Danish Gambling Reforms Hit Obstacle

A new gambling law passed by the Danish parliament on June 4 will be forced back to the European Commission for review after complaints from land-based gambling companies.

The companies protested the new tax rules, which would permit the licensing and taxation of online gambling operators when the law comes into effect in January 11.

The law has been altered to allow the country's taxation minister the right to set a new date for its implementation, depending on the response from the European Commission.

Previously, the Danish government had been forced to alter its original proposal, which involved blocking unlicensed online gambling sites and requiring financial institutions to block transactions with unlicensed online gambling companies.

Now this latest development regarding the European Commission comes less than a week after Denmark's former state online gambling monopoly Danske Spil revoked a five year contract awarded to PartyGaming plc in January 2010 for the supply of an online casino and poker platform.

The contract was revoked following a challenge from Playtech, a rival of PartyGaming.

Denmark's Public Procurement Complaints Board said that Danske Spil should legally have called a public tender before awarding the contract to PartyGaming.