Key Takeaways
- The Court of Justice of the European Union (CJEU) has ruled that differential tax rates may be applied to online and land based gambling in EU countries.
- The CJEU determined that taxing gambling at different rates was a proportional response where the intent was to encourage players to play at nationally regulated sites and deter them from playing elsewhere on the internet
The Court of Justice of the European Union (CJEU) has ruled that differential tax rates may be applied to online and land based gambling in EU countries.
The Royal Scandinavian Casino in Denmark argued that lower tax rates for online operators breached the principle of “proportionality,” which EU treaties demand. It said that the use of lower taxes to encourage players to use nationally regulated sites was a form of unlawful subsidy to the internet gaming sector.
The CJEU determined that taxing gambling at different rates was a proportional response where the intent was to encourage players to play at nationally regulated sites and deter them from playing elsewhere on the internet.
