The Financial Times has reveled that Denmark has received permission from The European Commission for establishing an online gambling market. Operators have suggested that in terms of gambling regulation; this decision suggests a way forward to other European countries.
As per Denmark's Gaming Duties Act, operators need to pay 20 percent tax on their gross gaming revenue. The Commission rejected the suggestions regarding the lower rate constituted state, explaining it was well suited with European Union rules "This is so because the positive effects of the liberalization of the market was more important than the distortions of competition".
As per RGA i.e. Remote Gambling Association, who represents the online operators, there were some valid reasons behind imposing different tax rates on online gambling and land-based gambling. According to Clive Hawkswood from RGA, “Land-cased gambling faces competition within national boundaries; on the contrary online gaming companies are exposed to highly-competitive international environment. Thus, financial policies must be set accordingly.”