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Gambling Law Changes For Hungry
Friday December 6,2013 : HUNGARY IMPLEMENTS GAMBLING LAW CHANGES
Demands for land casino licenses, but foreigners still largely excluded from remote gambling sector.
Demand for the ten land casino concessions permitted by recent changes to Hungarian gambling laws is said to be keen in reports from 11 of the Central European country's cities, but as the law stands at present it will be difficult for foreign remote gaming operators to gain a foothold in the promising market.
Amendments earlier this year broadened the list of games legally available on the Web and came into force in July.
However, the new regulations still treat remote gambling as a restricted gaming activity, although there are plans to expand the scope of current permissions to include sports betting and online casino games, in addition to the previously available online horserace betting and online card games.
The problem for foreign companies seeking to operate in the remote gambling sector is that the law requires that activities be carried out only by the state gambling organisation or by a concession operator that has a contract with the state.
This means that a domestic presence or partnership with an existing concessionaire is essential for foreign companies wishing to operate in Hungary.
Available concessions are of five-year duration and come with a hefty fee of around $450,000 per game type. Operators are additionally liable for a 20 percent tax on gross gaming revenues, to be levied every two weeks, as well as a quarterly supervisory fee equal to 2.25 percent of the sum.
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