a red brick building with a yellow sign

    Danish Tax Authority quickly established gambling checking system

    A solution developed by Systematic using an agile project process allows the Danish Tax Authority to check that Danish online players receive their winnings. 

     

    Challenge

    • New legislation - liberalization of the Danish gambling market
    • Many foreign gambling providers should pay taxes
     

    Solution

    • New legislation - liberalization of the Danish gambling market
    • Many foreign gambling providers should pay taxes
     

    Benefits

    • The liberalization of the gambling market can be achieved as planned
    • The Gambling Authority was immediately able to collect taxes and gain control

    A change in the law made the Danish Tax Authority busy

    On 1 January 2012 the Danish gambling market was liberalised. This created a number of challenges for the Danish Gambling Authority at the Danish Tax Authority. In just a few months, the Danish Tax Authority system needed to work out how to monitor foreign gambling providers, decide whether to deliver the advertised pay-out rates, calculate the correct duty, and ensure that winnings are properly paid.

    These activities are managed by a gambling control system, which processes data from online gambling providers worldwide.

    Systematic worked with the Danish Tax Authority in an agile development process and successfully meet a tight deadline.

    Agile process helped the Danish Tax Authority meet the deadline

    Systematic has been successful in splitting large IT projects into smaller areas of functionality and delivering these on an on-going basis. 

    This was a significant contributory factor in ensuring that the Danish Gambling Authority was able to manage the new gambling market only three months after the project start-up.

    Thomas Høineg Larsen, Project Manager at the Danish Tax Authority:

    “It went very quick from the time the initial exercises were completed to the time we had the software up and running, so we are very satisfied with the way things went with Systematic. We had not worked in this way at the Danish Tax Authority before, but decided at an early stage of the project that we needed to run the project in a different way. Because of this, we included a requirement in the invitation to tender documentation that the supplier must describe the course of the project on the basis of an agile approach. The benefits are obvious and we definitely learned from some really good experiences, which we will draw on in future.”

    Not the first cooperation between the Tax Authority and Systematic

    The Danish Gambling Authority is part of the Danish Ministry of Taxation, and the development of the gambling control system is not Systematic’s only project for the Danish Tax Authority. Systematic has also developed a solution that helps the Danish Tax Authority track VAT calculations when trading across EU countries. A total of 30,000 companies had registered with the system after just one week, without any hitches. As part of this cooperation, the Danish Tax Authority also received the developed solution on time, at the right level of quality, and within budget.