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Danish Government to Raise Online Gambling Tax

by Glenn Baird - December 3, 2019

The Danish government has revealed in its 2020 budget that the rate of tax in the country for igaming will rise by a staggering 8%.

It was announced today that the current 20% tax rate for online gambling firms would increase to 28% as of 2021. This is the first increase in tax revenue for the industry since 2012 when the rate of 20% was established.

Despite this apparent hike in tax rates there is still some way to go before the online industry in Denmark faces the 40% rate of tax that land-based casinos need to fork out, a rate that increases when to an additional 30% on profits made above DKK4 million.

The government in Denmark has stated that the increased tax rates are part of an initiative to fund support for problem gamblers and to improve regulation standards within the market.

The expected increase in funds for the government has been estimated at DDK20 million.

Whilst considered a strict regulator and often cited as an example for other regulators there has been a decline in revenue in the third quarter of the year, to DKK1.61bn.