Denmark Confuses EGBA and Industry with New Taxation Plan

Published July 1, 2020 by Lee R

Denmark Confuses EGBA and Industry with New Taxation Plan

Denmark's citizens may stray into risky play of shore if slapped with a 25% tax increase.

Progressive Denmark is facing a backlash over new taxation increases.

EGBA Trade Concerns

The European Gaming and Betting Association EGBA is taking issue with Denmark's newly announced plans to increase gross gaming revenue tax from 20% to 28% by 2021.

Discouraging Channelisation

The EGBA is concerned that this tax would unduly discourage users and drive more players towards illegal offshore betting where Denmark citizen's will be unprotected by the well-known measures Denmark has established for self-exclusion and related protections.

GGR Already Dropped

Think Tank H2 Gambling Capital has already reported a significant 17% drop in gross gaming revenue for Denmark's licensed operators for 2020.

Prevailing Deposit Issue

Before COVID, in January 2020, the country’s gambling market was already dealing with limited deposits.

Channelisation Projections

Unsightly data projections from the impact of the new tax in Denmark are not pretty, with channelisation likely to drop 12 points to 76% from the current 88% by 2024—further reverberating into a near 25% drop for operator revenue as well, to the tune of some 4.5 billion Danish Kroner (£537.512 million).

EGBA Secretary Speaks

EGBA secretary general Maarten Haijer called for “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.”

Proposed Tax Impact

H2 estimates that the suggested climb in taxes would increase offshore gambling nearly 80%. Some prognosticators are suggesting moderation to a less substantive 1% increase to 22% which would soften the blow on onshore operators.

Haijer Calls Out Legislators

Haijer further called for Denmark legislators to be wary of letting their own interests conflict with hard data:

“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.”

Outlook

Hopefully, Denmark's legislators can ultimately adapt a common ground consistent with their leadership model for effective protection of citizens from gambling harm.

See also

Danish Online Gambling Grows

Ethics and Gambling Meet at Geneva

Online Poker Industry Gaining Strength

UK Gambling Commission Reveals Key Industry Trends from 2015


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