Romania and Ukraine to the east, Slovenia, Croatia and Serbia to the south, Austria to the west and Slovakia to the north of Hungary. Hungary is located in central Europe and has sound laws and regulations in the field of gambling. In this article, readers will get more information about Hungary bookmakers and the sports betting industry, including legislation and regulations, prohibited and permitted types of bets, licenses and their costs, taxes, and the sports betting sector.
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Table of Contents
Summary of Key Events
Legal Framework of Gambling in Hungary
The gambling business in Hungary is regulated by a number of legal acts which ensure the observance of certain principles of responsible gaming. Here are the key pieces of legislation:
- Concessions Act (Act XVI of 1991): This act contains provisions on the concessionary agreements with the gambling operators mainly concentrating on the land based casinos.
- Advertising Act (Act XLVIII of 2008): This act defines the fundamental elements and bans of the commercial advertising of gambling and other similar businesses.
- AML Act (Act LIII of 2017): This act deals with the overall prevention and measures against the money laundering and terrorist financing and it is focusing on the gambling industry.
- Act on National Assets (Act CXCVI of 2011): This law states that the market of gambling, which means its organization and provision, is allowed only with the exception of the Internet-based sports betting and is reserved for the state.
- Gambling Act Amendments (2022): Proposed to repeal the state monopoly on sports betting and establish competitive license tendering.
- SZTFH Decree No. 19/2021: Has further provisions that only apply to this specific area of business – gambling.
History of Hungary Bookmakers Gambling Laws
The legal framework for gambling in Hungary has evolved significantly over the years:
- 1991: Gambling was allowed and Szerencsejáték Zrt became the only organization which has the right to organize any risky activities in Hungary.
- 2005: The Hungarian Minister of Finance has issued Decree No. 32 with the provisions of the gambling license and protection.
- 2006: The European Commission sent a warning to Hungary to open its gambling market while making the necessary changes to the legislation.
- 2018: The Court of Justice of the European Union stated that the Hungarian legislation which bars licence applicants in the field of online casinos from being able to operate a land based casino from Hungary is a restriction on the freedom to provide services under Article 56 of the TFEU.
Regulatory Agencies of Hungary Bookmakers
The major controlling body for gambling business in Hungary is Szerencsejáték Zrt which has a monopoly over some forms of gambling including sports betting, lotteries and bingo. Also, the SZTFH (Supervisory Authority for Regulatory Affairs) has the authority in supervision of gambling business, marketing and other related to money laundering issues.
Prohibited and Allowed Bets
Hungary’s gambling laws outline which types of betting are allowed and which are prohibited:
- Allowed Bets: This includes; Sports betting, lotteries, bingo, and casino games that are conducted physically such as Blackjack, Roulette, Slot machines, Poker.
- Prohibited Bets: It should also be noted that online casinos are strictly prohibited for foreign companies, while local hungary-based platforms are allowed for gambling and slots. The regulation of betting on fantasy sports and e-sports is the same as with online sports betting if the latter falls under the same category.
Gambling Licenses and Fees
The Hungarian government has different gambling licenses with different conditions and charges that applicants must meet. The procedure of getting a license is quite rigorous as it follows the legal procedures.
- Casino Licenses: Permission is allowed for as many as 12 land based casinos.
- Online Casino: The only entities that are allowed to provide online casino games are the concession holders of land based casinos.
- Sports Betting Licenses: The licenses for online sports betting will be opened for EEA companies from the 1st of January 2023. This includes the specific fees that are stated in the Gambling Act as well as the requirements.
Gambling Taxes
Operators of gambling activities in Hungary are subject to several taxes:
- Corporate Income Tax: A set price of 9%.
- Gambling Tax: Divided by the kind of game, it has particular charges for drawing games, lottery games, bingo games, joker games, keno, remote betting, slot machines, and card rooms.
- Casino Gambling Tax: 30% of the first HUF 10 billion (EUR 24,152,140) of the net gaming revenue, with further tiers for higher revenues.
- Slot Machine Tax: An annual game tax of HUF 60,000 (EUR 145) per machine fixed on the license holders.
- Card Room Tax: To this end, the share of the net gaming revenue shall be 40 percent.
Sports Betting in Hungary
Sports betting in Hungary has come a long way and has therefore become a competitive market with legal operations. Key developments include:
- 2012: The only permitted forms of land based gambling were in casinos, state-run betting shops and horse racing betting offices (LOVI) of Szerencsejáték Zrt.
- 2022: A bill was proposed to open up the sports betting market and eliminate the state’s monopoly by having the SZTFH regulate it.
- 2023: The EEA companies are allowed to apply for license for the provision of online sports betting services.
Conclusion
The Hungarian gambling scene is rather state-regulated with some competition, especially when it comes to sports betting and Hungary bookmakers. The laws of the country afford a structured market and the newer legal reforms have paved way for more competitors. Appreciating these laws, license, and taxes is essential for anyone who wants to participate in Hungary’s growing gambling market.
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