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Article of the week

Danish TV Station finds back door into gaming monopoly II

State-owned TV2 found a loophole in the national gaming laws that allow it to provide cash payouts to winners of its online computer games.

Tax Minister Kristian Jensed stated: «TV2 isn't providing gambling. It is a competition, and that is regulated by gaming laws.»

Most of the profits from gambling are received by sports and culture organizations in Danemark. In 2007, over 1 million kroner of the 1.6 billion reported as profits by Danske Spil were given to national culture and sports organizations. TV2 though will be allowed to keep the profits it makes.

The state owns 80 percent of the shares in Danske Spil. The rest are held by two national sports organizations.

Tax authorities had to recognize that there was no precise definition of a game of chance other than the payoffs been «primarily determined by chance,» but that games were nevertheless judged on a case by cases basis.

They also refused to acknowledge the difference between the types of games as being a «loophole.» «TV2 isn't providing gambling. It is a competition, and that is regulated by gaming laws.» Tax Minister Kristian Jensed stated.

It is expected that with the discovery of the loophole new game providers will flock to Danish soils. Furthermore, the European Commission is currently involved in legal action against the Danish monopoly which it claims violates common market regulations.

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