Denmark Online Casino Winnings Taxes
Denmark, a Scandinavian country, is known for its developed economy, happy citizens, and high standard of living.
00:08 15 July 2020
Apart from many advanced sectors and industries, the country has a strong iGaming and gambling market too. The Danish Gambling laws are transparent and align with the modern system.
In Denmark, the Gambling Act was implemented in 2012. Here, the Spillemyndigheden Authority oversees the betting activities. It is responsible for issuing licenses to both online and land-based casinos. Therefore, the players need to check if the casino in which they are betting falls under the Danish Authority gambling laws.
The industry of online casino entertainments in Denmark includes horseracing, betting, lotteries, slot games, and much more. The Danish players can choose to play at the reputed casino like VulkanVegas Denmark that offers a remarkable welcome bonus and other weekly bonuses and promotions. You can select the top slot games, video poker games, table games, live dealer games, and much more. People of Denmark love trying their hands-on online casinos more as compared to land-based casinos because they can play games on the move.
Besides, the country’s regulatory authorities and the Danish Government plan to increase taxes that will come into effect from the year 2021. Here is what the taxation on casino winnings be like.
Increase in Gambling Taxation in Denmark
According to the sources, the Danish government in its 2020 budget session was about to increase the iGaming tax revenue to 28% on the total casino winnings. The tax has increased by 20% that is imposed on the casinos since 2012. This increased tax will get effective by the year 2021. Moreover, this will increase DKK 150m (USD 22.2m) in the new tax revenue collected by the government.
The government took this decision in the wake of regulating the economy of the country. It will also provide additional funds for problem gambling treatment that is prevailing in the Danish market. Moreover, the increased revenue will also help in providing funds for education, healthcare, and Denmark’s socio-welfare system. It will support the government in creating the Green Future Fund that will be DKK 25Bn, and the government will invest in environment-friendly initiatives and businesses.
Another reason to increase the taxes on online casinos is the land-based casinos, which are already facing the increased tax rates from 40% to 75% on their gross gambling revenue. It is seen that Danish Authorities crackdown on the gambling operators who are unlicensed and carry out in shutting down such operations. If any of the gamers are found indulged in illegal betting activities, then the authorities can fine or imprison them.
The Danish government also increased the tax rates on the online casinos because they were witnessing the ill-effect of gambling on the people. So, this will curb the excessive advertising rate and solve the country’s excessive gambling playing rates too. The government is working to curb the extreme market competition and to prevail responsible gambling among the casino operators. The sudden rise in the tax rates on online gambling casinos will help control any illegal activities as well.
On the other hand, this will also become advantageous for casinos since the International licensed operators will have to pay more taxes, and there will be less of Danish players due to increased betting rates. This will channelize the players from International casino operators to the Danish market since the casinos in Denmark will be regulated on the rates set up by the Danish Authorities.
Denmark’s casino market is one of the top gaming markets in the world. Danish players spend a significant amount of money on gambling activities. To curb this to some extent, the Danish government has put up an increased tax rate value upon International and domestic casino operators.
It will not only help in curbing excessive casino gaming but also help players to play according to the country’s regulatory compliance. Denmark’s market has already seen growth in the country’s revenue rate because of the casino sector. Moreover, the government earns more than 50% of its revenue from the casino sector. Hence, the authorities have made plans to channelize this revenue to other growing industries of the country.