DENMARK Law and Practice Contributed by: Nina Henningsen, Mazanti-Andersen
10. Acquisitions and Changes of Control 10.1 Disclosure Requirements A Danish gambling licence cannot be transferred. In the event of corporate restructuring – such as a merger, demerger or an exchange of shares – the DGA must be notified in advance in order to obtain prior approval. It is not possible to transfer (delegate) a licence or the rights and obligations that follow with the licence. It should be noted that the DGA has expressed inde- terminacy on this topic, which is why the matter of acquisitions and changes of control of a gambling licence are not certain at this time. 10.2 Change of Corporate Control Triggers A change of corporate control occurs when a person or legal entity crosses the threshold of owning 10% of the shares or the voting rights in the company holding the licence. 10.3 Passive Investor Requirements Similar requirements apply as in 10.2 Change of Cor- porate Control Triggers , as there are no exemptions for passive investors. The DGA monitors the gambling market and can at any time open a procedure for revocation of a licence if it finds that the licensee can no longer supply games in a sound financial and professional manner. The DGA can request the bailiff’s court to ISP-block an unlicensed website acting as a gambling operator. Every time an ISP blocking is granted, the relevant websites are listed on the DGA’s website. The DGA does not have the power to issue fines for violations of the Gambling Act. Consequently, even minor violations of the Gambling Act carry the risk of being investigated by the police in response to a report from the DGA. 11. Enforcement 11.1 Powers
The DGA does however have the power to issue repri- mands and orders if a licensee is in breach of specific provisions in the Gambling Act, associated executive orders or the AML Act. If the licensee repeatedly fails to comply with orders issued, or if the violation is of such gravity – even if it only happens once – that it undermines the purpose of the Gambling Act, eg, ensuring responsible gambling and protecting young people from exploitation, the DGA can revoke the licence. 11.2 Sanctions Sanctions for breaching the Danish gambling legisla- tion/regulations range from a warning to up to two years in prison, depending on the specific offence. If the offence is sanctioned with a fine or imprisonment, the case will be handled by the Danish police and the Danish prosecution service. In relation to online gambling operators that provide gambling on the Danish market without a valid licence, the DGA will request the bailiff’s court to issue an ISP block of the website. The DGA has used this sanc- tion on several occasions. Every time an ISP block is granted, the relevant websites are listed on the DGA’s website. Decisions made by the DGA may be appealed to the National Tax Tribunal for a fee of DKK1,200. An appeal against a decision made by the National Tax Tribunal must be brought before the Danish courts within three months of the decision. Otherwise, the decision of the National Tax Tribunal will be final. 11.3 Financial Penalties The calculation of a fine is based on a business’s net turnover at the time of the violation.
12. Tax 12.1 Tax Rate by Sector
The provision of games covered by the Gambling Act is subject to duty under the Danish Gambling Duties Act. The duty percentage and the regulation and fre- quency of payment vary depending on the type of game. Thus, in the following, the gambling tax rates are outlined by sector.
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