The tax on online gaming is being increased to 28 per cent of gross gaming revenue in Denmark as part of the government’s 2020 budget, with an expected increase of DKK150m in new tax likely to be generated.
The eight per cent tax increase will kick-in in 2021 with the aim to provide extra funding for problem gambling treatment.
In other news, the Danish Gambling Authority has ruled that 888 Denmark Limited did not sufficiently fulfil its Anti-Money Laundering obligations. The section states that the operator must investigate unusually large transaction patterns and activities which do not have a clearly economic or demonstrable legal purpose, in order to establish whether there is any suspicion or reasonable reason to suspect that these are or have been linked to money laundering.
It said 888 Denmark failed to fulfil its obligation to report to the State Prosecutor for Serious Economic and International Crime, by knowledge, suspicion or reasonable reason to suspect that a transaction, funds or activity is or has been associated with money laundering.
An individual deposited more than DKK1m into his gaming account within three months. During that period, 888 Denmark performed various background checks on the player, mainly through open sources on the internet. After the player had deposited more than DKK600,000 into his gaming account within a few days, 888 Denmark also asked the player to submit documentation for his income or assets. The player declined to provide any income or asset documentation, and despite this, 888 Denmark allowed the player to continue playing for almost one month before his gaming account was closed. 888 Denmark did not find any reason to report to the State Prosecutor for Serious Economic and International Crime in this regard.
The Authority said that 888 Denmark should have prevented the player from gambling earlier than was the case, and that 888 Denmark Limited should have sent a report to the State Prosecutor for Serious Economic and International Crime.
888 Denmark now needs to amend its procedures in order to prevent the possibility of money laundering at an earlier stage and to report to the State Prosecutor for Serious Economic and International Crime in similar cases.