Hungary
Hungary is a Central European member of the European Union with a regulated gambling sector. Gambling activities are supervised by the Supervisory Authority for Regulatory Affairs, which oversees licensing and compliance. Operators must obtain the appropriate authorization before offering gambling services within the country.
Who Issues the License?
The process of obtaining a gambling license in Hungary is supervised by the Supervisory Authority for Regulatory Affairs. However, several additional authorities may also participate in the regulatory process:
- Operational inspection certification is issued by the Hungarian Calibration Institute, which verifies compliance with technical and operational standards.
- Approval for opening a gambling venue may also require authorization from local municipalities. For example, in Budapest this function is handled by the district municipal administration.
In most cases, a Hungarian gambling license is granted for a period of five years. The license may be revoked earlier if the operator violates regulatory obligations, such as failing to comply with tax or legal requirements.
Registration Requirements
To obtain a gambling license in Hungary, it is first necessary to establish a company and then submit an application to the regulator. The main requirements include:
- Clean background of the founder — the company must be established by an individual with no criminal record; the founder’s citizenship is generally not a determining factor.
- Minimum share capital — the company must have a minimum authorized capital of €12,000.
Currently, Hungary maintains relatively strict regulations for the gambling industry, although regulatory adjustments and potential easing of certain rules may occur in the future.
Taxation System
The gambling industry in Hungary is subject to a specific taxation framework depending on the type of activity:
- Lotteries — 24% of the monthly prize pool;
- Totalizator operations — 17% of the monthly prize pool;
- Bookmaking services — 20% of net profit;
- Online betting — 15% of net profit;
- Casino operations (both online and land-based) — 30% if annual revenue does not exceed 10 billion HUF. If this threshold is exceeded, a different tax structure applies, including a fixed annual payment of 3 billion HUF plus an additional 10% of annual revenue.
Horse race betting is currently exempt from taxation.
At present, obtaining a gambling license in Hungary is not considered highly attractive due to relatively strict regulations and higher tax rates. However, the regulatory environment may evolve in the future, as interest in the Hungarian gambling market has been gradually increasing.
Capital Requirements
The minimum share capital requirements depend on the type of gambling activity:
- Casino operators — from HUF 100 million (approx. EUR 252,948) to HUF 1 billion (approx. EUR 2,531,100) depending on the class of the casino.
- Casinos located in Budapest or Pest County — at least HUF 300 million (approx. EUR 758,800).
- Card club operators — minimum capital of HUF 25 million (approx. EUR 63,220).
- Remote gambling operators — minimum statutory capital of HUF 1 billion (approx. EUR 2,531,100).
Licensing Timeline
The time required to obtain a licence depends on the type of gambling activity:
- Remote gambling licences — up to 120 days from the start of the registration procedure.
- Other gambling activities — up to 75 days from the start of the registration procedure.