Gambling business in Hungary
Hungary is a Central European country that has legalized all types of gaming entertainment. The law of the country clearly regulates the rules of work in the gambling industry, both in land facilities and in the online segment. Anyone over the age of 18 can play in both land and online casinos.
The largest supplier of gambling in Hungary is the company Szerencsejáték. State-owned, until 2012 it was the monopoly of the country’s gambling business. The provider had exclusive rights to all lottery games, owned one of the casinos operating at the time, and invested in another.
Since 2012, significant changes have been made in the legislation regulating the gambling business. They enable other companies to expand their online and offline markets.
Gambling legislation in Hungary
The process of legalizing gambling in Hungary began in 1991. The following modern laws were adopted to regulate the gambling market:
The first provider in the country was the state-owned company Szerencsejáték. He received a monopoly on gambling services, he was initially responsible for managing the lotteries. The sports betting market was controlled by its subsidiary TippMix.
In 2005, the Hungarian Minister of Finance signed Decree No. 32, which sets out the rules for gambling licensing and their protection. The country continued to maintain a monopoly policy. Third-party companies - representatives of the gambling business of other countries - did not have the opportunity to develop the Hungarian market.
The situation changed in 2006 when the owners of Sportingbet.com appealed to the European Commission for help. The following year, Hungary received a warning about the need to open a market. Thus, the state government was forced to think about making changes in the legislation.
Further changes were made in the law:
However, the conditions for organizing casino activities in the state are quite strict. As a result, foreign providers are reluctant to enter the markets.
Hungarian Gambling Regulator
The responsibility for regulating the gambling market rests with the Gambling Supervision Department, which is part of the Hungarian National Tax and Customs Administration. The tasks of the department are:
The administration cooperates with the National Bureau of Public Affairs and the National Bureau of Consumer Protection.
The Ministry of National Economy is considering the creation of gambling industry legislation.
Activities subject to licensing, conditions for obtaining licenses
However, the organization of land-based casinos and poker clubs in Hungary is still a state monopoly. In other words, this type of activity can be carried out either by specially created state-owned companies or by firms that have received a concession.
Today there are 9 land-based casinos in Hungary:
The validity of the departmental certificate is 1 year, the cost is about 18 euros. The document is issued within 30 days from the date of request.
Licenses are also divided into several categories:
In Hungary, it is necessary to issue a certificate for each device. To do this, the slots must meet a number of requirements:
To open the hall, you should choose a room with an area of at least 90 sq.m. M: 75 - for the installation of slot machines, 15 - for the arrangement of bars. The "suitability" of the building is confirmed by the professional assessment of the City Hall. The minimum cost of the conclusion is 16 euros. The tax rate is composed of several components:
Online gambling in Hungary
Online casinos are also allowed in Hungary. The first games for Internet resources were released in 1998 by Szerencsejáték. Since 2002, the citizens of the country have been able to place sports bets via SMS.
The final changes came into force in 2017 and in July 2013. The state then granted foreign operators the right to organize online casinos.
The activities of gambling resources are regulated by the 1991 Law on Gambling and subsequent amendments. The monopoly right to open an online casino belongs to the state. To create a resource, you need to make the appropriate concessions.
The company that opens the portal must have a legal address in Hungary. The license to organize Internet resources is valid for 5 years.
However, according to well-known operators, opening an online casino in Hungary is associated with high costs. As a result, foreign providers did not attempt to obtain a license. Today, licensed internet portals created by operators are practically unknown in the country.
Hungarian online casinos
The first licensed online casino in Hungary - Vegas portal - opened only in February 2017. The site is owned by LVC Diamond. The slot machine collection includes models from well-known developers: Microgaming, iSoftBet, Play'n GO.
In April, the casino signed a partnership agreement with Grantube. Thanks to this, Hungarian players could access the manufacturer's popular slots Sizzling Hot, Book of Ra, Lucky Lady´s Charm and others.
In addition, users will be able to play roulette, video poker, blackjack, table games with live dealers.
The site has a good selection of tax systems. For transactions, credit cards and prepaid, bank transfers, popular European EPS available: Skrill, Neteller and others.
Prospects for the development of the gambling business in Hungary
It is quite difficult to predict how successful the development of the country's gambling business is. Experts disagree.
On the one hand, many Hungarian citizens have a negative attitude towards the development of gambling. The media pursues a policy of forming public opinion. Thematic programs often raise the issue of the negative impact of gambling on the psychological health of a nation.
In addition, market participants note the rather strict licensing conditions and high levels of costs for organizing activities.
However, there are also positive factors. Well-known operators are persistently trying to change the situation. An example of this is the aforementioned Vegas.hu casino. Its owner not only opened an online portal, but also attracted prominent partners for collaboration. Given that the newly launched site is one of those that offer a Hungarian interface, we can predict its high popularity.
In addition, the Hungarian authorities have once again received relevant recommendations from the EU to amend the existing legislation. Following Unibet's complaint about "discrimination and lack of transparency in the law", the EU recommended a gambling act in the 1991 law.
Once the Hungarian government took similar recommendations. Operators are hoping for a favorable result this time as well.
Finally, one of the most anticipated events is the creation of "Hungarian Las Vegas" - the largest gambling center built by an Austrian businessman on the border between Hungary and Slovakia. According to the preliminary estimates of the Ministry of Finance, the state will be able to receive about $ 2.5 million immediately after the implementation of the project. This amount is an argument for the development of gambling in the country.
Conclusions
Hungary is a country that has a legalized gambling business, but there are strict conditions for its organization. However, given the changes in the market over the past few months, it is possible to predict the further development of the industry in a more favorable and dynamic manner