On 7 March 2012, the European Commission's decision on the Danish State aid case on gambling duties was published in the Official Journal of the EU, thereby officially opening a two-month period during which interested parties could challenge the Commission's decision.
The formal investigation procedure was opened by the Commission in 2010 after EUROMAT member, the Danish Amusement Machine Industry Association (DAB), and the land-based casino operator, "Royal Casino", contested the logic behind the new Danish duties regime that imposes a differential tax treatment between online and land-based gambling operators. The tax rate for land-based casinos (roulette, blackjack, baccarat, punto banco, poker and casino based gaming machines) amounts to 75% of gross gaming revenue (GGR) and 71% of GGR for land-based gaming machines (i.e. amusement with prizes (AWP) such as slot machines in gambling halls and restaurants), whereas the online provision of these games is subject to a flat tax of 20% GGR.
The Commission's final decision (delivered in September 2011) established that although the lower rate of taxation for online gambling indeed constitutes state aid, it is still compatible with EU rules because "the positive effects of the liberalisation of the market outweigh the distortions of competition brought about by the measure".
EUROMAT member DAB, one of the complainants, filed its complaint to the European Court of Justice (ECJ) on the Commission's decision already in November 2011. At the time, DAB also requested the ECJ to suspend the new law while the proceeding is ongoing. Although the General Court has now rejected the latter, it continues to assess DAB's complaint on the Commission's decision.
Interested parties that are now also entitled to challenge the Commission's decision are namely, (i) the EU institutions, (ii) the Member States, and (iii) any third party that is "directly and individually concerned" by the new Danish legislation (i.e. the beneficiary of the aid, competitors, and complainants).
Please find
here the Danish State aid case.