Malta, which is just gaining a foothold in the e-gaming industry, will soon face competition from Denmark. The member state is ready to issue gaming licenses to online operators. These will be in keeping with a new law that will be enforced next year in Denmark. The law was passed recently following the conclusion of an investigation that the European Commission undertook. The inquiry which, went on for nine months, was to determine whether the law is capable of providing the online industry with irregular state aid.

Casino operators in Denmark were of the opinion that the law permits e-gaming providers to pay a small tax of just 20% while the land-based owners have to pay between 45% and 71%. The former have largely been controlling the gambling industry in Denmark, as they have been the only gambling service providers. According to the operators, the tax which makes for state aid is quite small.

Commission to Provide Two Kinds of Licenses

When it passed the law, the Commission justified its decision to offer different tax rates based on the platform on which the operators provide services. It stated that online gambling required operators to function in a more competitive environment when compared to the land-based forum. The latter have the security that the jurisdiction in which they function provides. A member of the Commission mentioned that the lower tax offered to online gambling is makes up state aid; however, this is in line with the rules set forth by the European Union.

The decision by the Commission provides two kinds of licenses that they can use for operating on the online platform. One allows license holders to provide sports betting services both online and offline. Some of the betting products that can be offered through this are – fixed, spread, pool and exchanges. Two betting products will be offered exclusively through the state-owned Danske Spil. They are horse racing and bingo.

The other license will allow online casinos to provide their products. They will have to pay a flat rate of 20% as taxes. This will be considered on the gross win on all the products offered. Some of these are – online roulette, blackjack, bridge, slots and whist. The casino operators that offer their services in Denmark will have to opt for one of the two types of licenses.

Remote Gambling Association – Commission's Decisions Justifiable and Clear

According to a spokesman for the Remote Gambling Association (RGA), the decisions taken by the Commission are justifiable and clear. The body, which represents several firms located in Malta, expressed its support for the low rate that will be offered to remote operators. He clarified that the land-based casino operations have the security of their national boundaries. However, online operators are functioning in an international environment which is incredibly competitive. He stated that the fiscal policies set for the two kinds of operators should be based on this.

One of the key players in the European e-gaming industry, Malta, welcomed this decision. A spokesperson for the Lotteries and Gaming Authority stated that the organization was expecting this ruling. Malta is currently a viable jurisdiction for online gaming operators, as it has a low rex regime. As a result of this, the e-gaming taxation in the country will be quite less when compared to that in Denmark.