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BRUSSELS -(Dow Jones)- The European Commission launched a formal investigation Tuesday into whether Denmark's low tax regime for online gambling sites gives them an unfair advantage over bricks and mortar casinos.
Denmark is opening up its gambling markets by granting licenses for Internet casino games. It is planning to set a flat tax of 20% on online gross gambling revenue, compared with up to 75% for land-based casinos and gaming halls.
The commission has doubts at this stage whether the different treatment entails an unjustified competitive advantage for online casinos, it said in a statement. It has received two complaints alleging the planned measure violates EU rules, it added.
-By Carolyn Henson, Dow Jones Newswires; +32 2 741 1 480; carolyn.henson@ dowjones.com
