Hungarian Government Passes New Law Requiring State Permit for Online Gambling

Admin. - July 10, 2013

Expansive fees, high taxing and severe punishments for Gambling Operators all a part of a new Law passed by the Hungarian Government.

Online Gambling in Hungary absorbed a severe blow with the passing of a Gambling Regulation law in the Hungarian Parliament. The Law, which was initiated by Hungary's Economy Minister Mihaly Varga, was passed by a majority vote of 235 to 69. This law sets some very expansive fees for Gambling operators.

Expansive Fees, Tight Auditing, Severe Penalties

The new Hungarian Gambling act requires gambling operators to pay license fees to the state the price of 100M Hungarian Forint (€338,891) for each game they want to offer; the license then remains valid for 5 years. Online Gambling Operators will also be required to pay 20% tax after taking their revenues, and will have to provide data about the players in their businesses, for informing the Hungarian Tax Authorities – this is in order to make sure no people aged under the age of 18 are involved. All the more, Gambling Operators will have to pay an additional 2.5% tax for the tight auditing the Hungarian Tax Authorities will conduct in the matter – with the submission of quarterly reports. Gambling Operators which will not purchase licenses from the state will be blacklisted and their IP addresses will be banned by Hungarian Internet Service Providers.

A Concussion to Online Gambling

The Hungarian Government estimated that the revenue expected from the new regulations will amount to around 10 Billion HUF (33.88 million €). Only time will tell how big of an impact this Hungarian law will have on Online Gambling in Europe as a whole. 

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