EUROMAT News 23 September 2011

EU AFFAIRS

20/09/11 – The European Commission issued its decision on the state aid case concerning Danish online gambling duties. The Commission’s decision establishes that the lower rate of taxation for online gambling (a 20% tax rate on the gross gaming revenue compared with up to 75% for land-based casinos and gaming halls) indeed constitutes state aid, but finds it compatible with EU rules because “the positive effects of the liberalisation of the market outweigh the distortions of competition brought about by the measure”. Operators will now have until 17 October to apply for licences in order to offer services on the market opening in January 2012. The official decision of the Commission’s investigation will be made available in two weeks and could still be challenged within a period of 2 months by any of the EU institutions, Member States, and third party “directly and individually concerned” by the act.