Tax revenue levied on licensed iGaming firms that operate in Denmark is to increase in 2021, with a rise to 28% on gross gaming revenue, an increase of 8% from the current 20% which has been in place since 2012, when online gambling first became regulated in the country.
The Danish government is of the view that the increase in gaming duty will see an extra £17m in tax revenues raised. Whilst still considerably lower than the 45% on gross gaming revenue that land based operations in Denmark have to pay, the 8% increase will still be felt by operators that operate in the online marketplace in the country.
The decision to increase the amount of tax paid by online operators in Denmark came about after several days of negotiations between the ruling Social Democrat government and other parties, including the Socialist People’s Party and the Red-Green Alliance, who both gave their backing to the move.
With the decision being taken to both increase tax revenue derived from the industry, as well as the government taking the view that this will help reduce problem gambling in the country. With a portion of the additional funds raised being channeled into this area and increase support for responsible gambling.