BF exchange in Denmark - questions

[herewego]

Hi everyone
I would appreciate your help for the below:
1. Is BF exchange legal in Denmark? (not the traditional style bookie but the exchange)
2. What is the base commission rate ? (5%?)
3. Do you have to state any winnings in a form to be considered "legal" in Denmark? ie in an annual statement about your finances (is there such thing for those that live in Denmark?)
4. How such winnings are treated in Denmark? ie taxed by ...%?
......

Thanks

[BetScalper]

With the exception of lottery winnings, there is no tax to pay on profits from gambling.

[Kafkaesque]

Hi everyone
I would appreciate your help for the below:
1. Is BF exchange legal in Denmark? (not the traditional style bookie but the exchange)
2. What is the base commission rate ? (5%?)
3. Do you have to state any winnings in a form to be considered "legal" in Denmark? ie in an annual statement about your finances (is there such thing for those that live in Denmark?)
4. How such winnings are treated in Denmark? ie taxed by ...%?
......

Thanks

1. Yes it is, for recreation. As a living, maybe. It's illegal in Denmark to have gambling as your primary occupation, but the specific law is noted with unless through an entity that has been specifically approved. The law hasn't been tested (outside of people claiming benefits while making money gambling), but my own interpretation and what is always commonly held in the "community" is that as long as it's through companies with a license with the Danish state (which would include Betfair, also the exchange) then you're fine. Sites with licenses in other EU countries should also be fine, but you're taking a risk, if the powers that be decide to crack down.
2. It's 6.5%
3. No, you don't have to do that. However, given the circumstances from question 1. it would be highly adviseable to keep to a perfect record of absolutely everything, so that you've got everything in order should a question ever be raised as to where some money has come from. Better to start from day 1, even if you're losing money at first, to have a complete record.
4. Taxfree. Anything from a site with a license inside the EU is.

[Kafkaesque]

With the exception of lottery winnings, there is no tax to pay on profits from gambling.

Lottery winnings are not subject to tax either, in Denmark.

[BetScalper]

With the exception of lottery winnings, there is no tax to pay on profits from gambling.

Lottery winnings are not subject to tax either, in Denmark.

If you do an internet search then why does the following come up ?

“Gambling winnings are not taxed in Denmark with the exception of lottery winnings that exceed €26. The Danish Tax Authority is in charge of collecting these taxes which is done through income tax declarations.”

[Kafkaesque]

With the exception of lottery winnings, there is no tax to pay on profits from gambling.

Lottery winnings are not subject to tax either, in Denmark.

If you do an internet search then why does the following come up ?

“Gambling winnings are not taxed in Denmark with the exception of lottery winnings that exceed €26. The Danish Tax Authority is in charge of collecting these taxes which is done through income tax declarations.”

You're expecting to explain myslef to some un-sourced internet site? I wouldn't know where to begin, other than that not everything written is true, especially on the net.

What I can say is that I was, back in the day, part of a group of poker players who took the Danish state to court over the issue. We wanted judicial clarity, and it was ruled in our favor. Under EU law in the free market, any income that is universally tax exempt with Danish companies is by law the same for Danish citizens with any company within the EU. At the core of our complaint was poker, but it was ruled for any other area.

On lotteries specifically, they are not taxed through income tax; that much is beyond any and all doubt, so I'd doubt your source.

[herewego]

I really thank you for the answers
They were what I was looking for
One last one:

Is BetDaq legal in Denmark?

Searching I found that It is not but I would like to hear it from someone actually living there

[Kafkaesque]

I really thank you for the answers
They were what I was looking for
One last one:

Is BetDaq legal in Denmark?

Searching I found that It is not but I would like to hear it from someone actually living there

Betdaq doesn't have a Danish licens, but they do have a license within the EU. The law regarding Danish licenses only relates to the suppliers, ie. bookies/exchanges/other gamling sites in that they cannot advertise in Denmark and cannot have online marketing directed at Danes, including not allowed to have sites in Danish language. On your side, as the customer, it's not illegal to use sites without a Danish license. It only means less security, as you cannot take cases of closed accounts, mishandled etc to the Danish gambling authorities. As per my previous response it is still taxfree given the EU licens.

Only note is if you're doing it fulltime, as in my response to question 1 above. Where BetDaq would fall under "Sites with licenses in other EU countries should also be fine, but you're taking a risk, if the powers that be decide to crack down."

[herewego]

Thanks for the replay
English is not my first language so lets make a recap
I plan to make my living from gambling living in Denmark so:
1. It is considered full time living from gambling if you have
a. income ONLY from gambling?
b. most of your income from gambling (but there is a part from a regular job)?
(better get an answer from a lower for this?)
2. what do you mean by "but you're taking a risk, if the powers that be decide to crack down"?
what does this "if the powers that be decide to crack down" means?
3. Trying to register a BetDaq account from a Danish ip I get:
"Due to legal and regulatory restrictions, we are currently prohibited from offering the Betdaq site and services to your jurisdiction."
So I don't think new accounts can be opened using Danish address
Betfair exchange allows you to create a new account (although it's in Danish and I don't understand a thing )

[Kafkaesque]

Thanks for the replay
English is not my first language so lets make a recap
I plan to make my living from gambling living in Denmark so:
1. It is considered full time living from gambling if you have
a. income ONLY from gambling?
b. most of your income from gambling (but there is a part from a regular job)?
(better get an answer from a lower for this?)
2. what do you mean by "but you're taking a risk, if the powers that be decide to crack down"?
what does this "if the powers that be decide to crack down" means?
3. Trying to register a BetDaq account from a Danish ip I get:
"Due to legal and regulatory restrictions, we are currently prohibited from offering the Betdaq site and services to your jurisdiction."
So I don't think new accounts can be opened using Danish address
Betfair exchange allows you to create a new account (although it's in Danish and I don't understand a thing )

1. The law as it stands states (in my own translation!): "One, who seeks occupation through gambling and similiar betting, which is not by specific determination by law allowed, or promotes such gambling, will be punished with a fines or jail time of up to 1 year."

Whether this "seeks occupation" is anybody's guess. Especially as the law is untested and none (to my knowledge) have been prosecuted for it. Your guess is as good as mine when it comes only or mostly from gambling.

2. I simply mean that apart from what seeking occupation means, it is also an open question what allowed by law means. It could mean that only those sites with a Danish license are allowed, so the risk is slightly bigger with a non-Danish licens site. How much bigger risk...again your guess is as good as mine, although mine is very, very little greater risk.

3. I don't know the current status of Betdaq in the Danish market. As for Betfair being in Danish, that's a geo ip local thing. You'd have to talk Betfair on that. I highly doubt they'll be able to, or want to do something about that, as there'd probably be legal and technical boundaries, they'd have to hurdle to accommodate you in getting an exception.

Overall, I'm just being cautious. I wouldn't want to advice you to just go for it, when there are legimate risks involved. Make your own judgement, but ask me the above is absolute worst case in terms of the law. I cannot see the authorities pushing this law, so you should be absolutely fine. Even if they do, I'd suggest there's a list of people before you, they would go after first to try out the law. So worst case, you should keep an eye out for news on it, and you can then stop if circumstances change. You just need to know that the, very slim, possibility of it being unlawful is there, and act accordingly.

[herewego]

I really thank you Kafkaesque

[Kafkaesque]

No problem. Are you moving to Denmark, or here already? Where are you from?

[herewego]

I plan to be there in the winter
I'll contact you if things go well
Currently I'm few thousand miles away
Thanks again
You have a great forum here

[Kai]

It's illegal in Denmark to have gambling as your primary occupation, but the specific law is noted with unless through an entity that has been specifically approved.

Not heard that one before, seems a tad bit extreme. I remember a friend telling me a few years ago that he couldn't trade horse racing from Denmark because of Danske Spil, but I did hear that things have since changed for the better over there.

[Kafkaesque]

It's illegal in Denmark to have gambling as your primary occupation, but the specific law is noted with unless through an entity that has been specifically approved.

Not heard that one before, seems a tad bit extreme. I remember a friend telling me a few years ago that he couldn't trade horse racing from Denmark because of Danske Spil, but I did hear that things have since changed for the better over there.

Yep, I hate Danske Spil and then some. The old monopoly, in amongst it on horses. It took them until early 90's to set up bookmaking/betting, apart from a "pick 13" scheme. It also held a license (the only license, apart from casinos) on poker which they didn't take up for the longest while. They tried to paint poker as a problem gambler's game, because they knew, they couldn't compete in the market. While putting up slot machines with no second thought.

The market has undergone changes to break up the monopoly, but to this day the Danish lottery only pays out 60% out the take iirc. The rest is split as taxes, charity (mainly supporting local sports and culture), and admin costs. Talk about being a sucker's game! Or as the joke goes in poker/betting circles: An extra tax for people too dumb to understanding the most basic math!