Possibility for the Federation of Aalborg Sports Associations (SIFA) to continue to run televised bingo (‘TV Bingo’) – much to the delight of DK4’s older viewers

Priority question for written answer P-000185/2024
to the Commission
Rule 138
Morten Løkkegaard (Renew)

SIFA is a federation made up of 207 sports associations based in Aalborg whose purpose is to promote cooperation between them plus a better environment for sport. It is self-funded and independent; all its profits go to the sports associations.

Since 1985, much to the delight of an older target group in particular, SIFA has been running local televised bingo. Since gambling in Denmark was liberalised in 2012, the Danish Customs and Tax Administration has taken the view that, if participants are not in the same room, 'TV Bingo' should be classified as on-line gambling.

SIFA was therefore required to obtain an on-line casino licence in order to continue running 'TV Bingo'; it includes a 20% levy on gross gaming receipts (minus winnings). The levy has since increased to 28%.

Since the adjustment, SIFA has been finding it difficult to run 'TV Bingo'. There are significant broadcasting production costs for which SIFA cannot obtain tax deductions despite the fact that other gambling operators are exempt. That is affecting its ability to generate revenue to support sports clubs.

The Danish Ministry of Taxation claims that any exemptions for SIFA would be classified as state aid by the EU.

• 1.Would a tax exemption for SIFA be regarded as state aid by the Commission?
• 2.How does the Commission interpret state aid rules in connection with a non-profit organisation such as SIFA?

Submitted:23.1.2024