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Company Formation Hungary



Gambling Activities in Hungary

Updated on Friday 27th January 2023

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Gambling-Activities-in-Hungary.jpgForeign investors who are interested in setting up a company in the field of gambling should be familiar with the local legislation provided by the Hungarian authorities. The industry is regulated by the Gambling Supervisory Department (GSD) of State Tax Authority, which issues licenses for businesses in this field. It is compulsory to receive a license from GSD in order to carry out business activities in a legal manner. If you are interested in opening a company operating gambling activities in Hungary, our Hungarian company formation specialists can provide you with further information on the main advantages of the industry. 

Gambling legislation in Hungary 

According to the local legislation, the Gambling Act 1991 distinguishes between liberalized and non-liberalized gambling activity
Liberalized activities refer to the gambling places in which the operator provides only slot machines, while the non-liberalized are fully owned by the State or by a company which is owned by the Hungarian state
The gambling legislation stipulates that a company can conduct non-liberalized activities only if the state issues a concession agreement, which will allow the company the right to carry out these activities for a specific period of time. As such, foreign investors who want to set up their businesses in the non-liberalized gambling domain should receive the authorization of the Hungarian state, which will provide a five year concession agreement. 
Remote gambling is considered to be a non-liberalized activity, which will also include sports betting and online casinos. Non-liberalized activities can also refer to online horse racing bets and online card games; our Hungarian company formation agents can provide you with further details on this subject. 

Authorization for gambling activities in Hungary 

GSD will issue the authorization to perform activities in this field as long as the operator can provide the minimum requirements specified by the Gambling Act. As such, GSD will verify the following:
the operator provides correct information to the players;
the operator explains the risks incurred in the gaming industry;
the company provides protection for the players.
If you need further information on the gambling industry in Hungary, please contact our Hungarian company formation consultants, who can offer you assistance for the incorporation of a gambling business
Gambling operators are taxpayers in Hungary and therefore, the company must prepare specific documents to submit the necessary tax reports. 
Our Hungarian accountants can assist gambling businesses in this process, calculate the taxes dues (corporate tax of 30% for income of up to HUF 10 million), report any change from the data initially registered with the tax authorities, etc. 

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Mihai Cuc, Partner of MHC Law Firm