Gambling laws in Hungary

Yes.

Act XXXIV of 1991 on Gambling Operations (the “Gambling Act”) regulates gambling activities in Hungary.

Yes.

Yes, including gambling activities organised in a foreign country that are accessible from Hungary by electronic communications

Yes.

Supervisory Authority of Regulatory Affairs (the “SZTFH”)

Website: https://sztfh.hu/

Yes.

Both the Gambling Act and Act XLVIII of 2008 on Essential Conditions of and Certain Limitations on Business Advertising (the “Advertising Act”) contain regulations on advertising gambling.

Yes.

The organisation of some gambling activities is a state monopoly, and some can be organised by holding a concession, in which cases a local presence is required. Remote gambling is now liberalised, and entities located in the EEA are able to obtain Hungarian licences via their registered Hungarian representatives.

Yes.

Gambling activities that are not state monopolies must operate either in the form of a limited liability company (“korlátolt felelősségű társaság”) or as a (public or private) limited company (“részvénytársaság”). There are no such restrictions for organising raffles.

Yes.

No.

Although foreign investment restrictions do not directly target gambling companies, depending on other activities, (e.g. IT services, retail and wholesale) performed by such companies, foreign investment restriction may apply, therefore a case-by-case analysis is recommended.

Yes.

For casino operators, from HUF 100 million (EUR 263,261) to HUF 1 billion (EUR 2,632,618) depending on the casino class.

For a company running a card club, at least HUF 25 million (ca. EUR 65,815).

The statutory capital of remote gambling operators is HUF 1 billion (EUR 2,632,618).

Other requirements apply to gambling companies pursuing state monopoly activities.

Yes.

Yes.

The organisers of gambling activities are required to report to the SZTFH any changes to the facts or circumstances that had been examined during the process of obtaining a respective gambling licence, e.g. changes to the company’s deed of foundation.

Yes.

3.2.1 Betting?

Yes.

Betting activities fall within the state monopoly, so no licences are available to business. Remote gambling, including betting has been liberalised and also an EEA entity may obtain a Hungarian licence. 

3.2.2 Sports?

Yes.

Sports betting activities fall within the state monopoly, so no licences are available to business. Remote gambling, including sports betting has been liberalised and also an EEA entity may obtain a Hungarian licence.

3.2.3 Skill games?

No.

3.2.4 Card Games?

Yes.

Card games can be run either in casinos or card rooms. The Gambling Act includes special licensing requirements for the operation of a card room. 

3.2.5 Casinos?

Yes.

1. Casinos can be operated by a company that has a concession obtained by participating and winning in a state tender. After obtaining the concession, the company can submit its application for a licence pursuant to general procedural rules.
2. Only a company holding a concession for physical (land-based) casinos can apply for a licence regarding online casino games.

3.2.6 Lotteries?

Yes.

3.2.7 Arcades?

Yes.

The Gambling Act makes a distinction between slot machines and other arcade machines, by defining slot machines as devices that provide a chance of winning a cash prize, while arcade machines serve only entertainment purposes. Slot machines can be operated in casinos and game rooms only. On the other hand, the operation of arcade machines does not require a licence; operators must only notify the SZTFH, on which the SZTFH registers the arcade machines in a public register.

No.

Yes.

• Up to five years for the continuous organisation of lottery games.
• Up to seven years for the organisation of remote gambling activities.
• Up to the validity period of the arcade machines, for the operation of arcade machines.
• Up to 35 years for the operation of land-based casinos.
• Up to 15 years for the operation of card clubs, etc.

Yes.

1. Up to 75 days from the initiation of the registration procedure.
2. Up to 120 days from the initiation of the registration procedure in the case of remote gambling.

No.

Yes.

Only the holder of a concession licence for a Hungarian land-based casino is entitled to operate online casinos.

Yes.

In Hungary, Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing includes the general provisions of the Hungarian AML regime and some specific provisions regarding the obligations of the gambling sector. Additional gambling-specific provisions can be found in SZTFH Decree No. 19/2021. (X. 29.). Available in Hungarian only at: https://njt.hu/jogszabaly/2021-19-20-8K 

Under the Hungarian gambling-specific AML regime, SZTFH will complete a gambling-specific customer due diligence as part of the licensing procedure, during which SZTFH is entitled to request data from the applicant regarding certain attributes that could exclude the applicant from obtaining a licence, and may request data from the criminal registry as well. As a result, along with the application for licence, an application regarding the customer due diligence must also be submitted, and such application must be submitted every three years.

No. 

The GDPR applies.

N/A

Yes.        

The National Authority for Data Protection and Freedom of Information.

No.

International sanctions matters should be considered separately.

N/A

6.2.1 What is the approval regime and process in place?

N/A

6.2.2 Must permission be sought for each transaction, or can pre-approvals take place (subject to defined limitation, or otherwise)?

N/A

6.2.3 Other comments

N/A

Yes.         

Only for those advertisers that have a valid licence/concession for gambling operations. 

Advertising gaming/gambling activity is regulated by the Advertising Act.  

Yes.   

No advertisement involving gambling can be disseminated in any printed media which are published primarily for children or young persons.

Yes.       

There is no explicit restriction regarding the sponsorship of sports events in Hungary.

Yes.         

There is no explicit restriction regarding the involvement of celebrities in the advertising of gaming/gambling activities in Hungary. However, starring in any advertisement disseminated relating to games of chance offered without the gambling authority’s authorisation is prohibited in general. In addition, if unlawful advertising is published, a fine may be imposed on the person appearing in the advertisement collectively with the advertiser, the advertising service provider and the publisher, of up to ten times the financial advantage acquired by the unlawful advertising, but at least HUF 10 million.

Yes.        

The organisers of gambling activities must operate in accordance with the principle of a responsible gambling organisation and take certain measures to contribute to the consolidation of the potential negative effects of gambling, including addiction and the vulnerability of certain groups in society. 

Three percent of the game tax paid by casinos and online casinos is used for player protection or charitable purposes. Player protection in particular means: (i) running a call centre (for player protection purposes) that is available free of charge 24 hours a day; (ii) information published regularly on community benefits made available within the framework of the social assistance system; and (iii) the prevention and treatment of any detrimental mental, psychological or social effects relating to gambling.

Yes.         

1. Gambling advertising cannot target children and young persons (minors up to 18 years old).
2. The advertiser must have a valid gambling licence.
3. Playing a role in any advertisement relating to gambling activities offered without a licence from SZTFH is prohibited.

Yes.

Gambling companies are taxed at a flat 9% corporate income tax rate.

Operators of gambling activities, including the operators of slot machines for amusement, must pay gambling tax set out in the Gambling Act. 

The gambling tax rate is differentiated by type of game. Some examples of the rates of gambling tax for each type of game are:

• Drawing games: 30% of the monthly net gaming revenue;
• Lottery games: 24% of the monthly prize pool;
• Bingo games: 7% of the monthly prize pool;
• Joker games: 17% of the monthly prize pool;
• Other lottery games: 17% of the monthly prize pool;
• Keno: 24% of the net monthly gaming revenue;
• Remote gambling: 15% of the net gaming revenue payable monthly;
• Slot machines: annual game tax is payable of HUF 60,000 (EUR 145) per machine;
• Card rooms: 40% of net gaming revenue.

The gambling tax for casinos depends on the amount of net gaming revenue generated in the tax year. Its rate is 30% up to HUF 10 billion (EUR 24,152,140); over HUF 10 billion the game tax is HUF 3 billion (EUR 7,249,820) and 10% of the part above HUF 10 billion.

Gambling tax can be accounted as expenditure for the purposes of calculating corporate tax.

Unlicensed, non-continuously organised lotteries, gift draws involving unlicensed purchases or services, and horse racing betting are exempt from gambling tax. 

No.

No.

No.

General OECD based permanent establishment rules apply to gambling companies.

Yes.

Prizes for certain games that are subject to authorisation under the Gambling Act, such as lottery games, promotional contests of chance, betting and a foreign jackpot system are considered as the winner’s income that is fully taxable. The basis for the tax is the whole amount of monetary prize, and in every other case the fair market value of the prize increased 1.18 times. The income earned by the participant is subject to 15% personal income tax which must be deducted, declared and paid by the operator of the gambling activities to the Hungarian tax authority. Income from other games that are not subject to authorisation under the Gambling Act is tax exempt for the participant.

Find out more gambling regulation related to Hungary in the CMS Expert Guide to online regulation in Europe.