Population July 2013: 9.9 million
GDP 2012: 91 Billion EUR
GDP per capita: 14,300
Taxation for Lotteries: 17% of revenue
Online Taxation:
partially regulated, monopoly for sports betting
   

LEGISLATION

The legal framework for games of chance in Hungary is derived from the Act on the Organisation of Gambling, from 1991. Only state-owned companies can apply for a lottery license through a concession of the state.

Szerenscejáték Rt., the current license holder, was established in 1991 together with the implementation of the gambling act. It was established to take over the operation of the lotto and the toto from the National Savings Bank (OTP) that, together with the Ministry of Finance, managed these games. Szerenscejáték now has the monopoly on all draw games. At the same time, a Gambling Fund was established that distributed 6% of the revenues to good causes, especially sports but also to the fields of health care, social projects, culture, education and youth. However, in 1995 the act was amended and the Gambling Fund was abolished in order for the state to get a firmer grip on the lottery games. Ever since, almost all revenues go to the state. Through the Sports Act a small part of the received gambling tax is earmarked to go to the sports sector (3.7%). Personal income tax paid over prizes is 16%.

Szerenscejáték and other operators that are active at the gaming market in Hungary are subject to control of the Gambling Supervisory Authority, an institution of the Ministry of Finance established in 1991. The Board supervises the license holders and sanctions the licensees when necessary. Since 2007, the Gaming Board became part of the Central Bureau of the Tax and Financial Control Administration (APEH).

Certain sectors of online gambling have been regulated through amendments to the gambling Act in 2011, and new amendments have been proposed. However, licences have not yet been granted. Szerenscejáték has retained its monopoly on sports betting.


CHARITY LOTTERIES

As far as we know, no lotteries exist in Hungary that meet the criteria of a charity lottery. However, as Szerenscejáték distributes a small part of the sales to good causes, it is mentioned below.


OTHER LOTTERIES

  • SZERENSCEJÁTÉK RT.

    Szerenscejáték has the exclusive right to offer draw games, scratch cards and sports betting. Most number draw games and betting games can also be played online, via phone or SMS. The national lottery is the lottery 5/90 game, by far the most popular game. Szerenscejáték has more than 50% market share in the Hungarian gambling market and has 4,300 points of sale. Another 1,700 points of sale only sell scratch cards.

    In 2011 the organization reached record sales revenues of HUF 181 billion (€ 590 million), an increase of HUF 12 billion compared to 2010 (€ 40 million, ↑6.6%). HUF 103 billion (€ 330 million) was paid out in prizes (57%). HUF 60 billion (€ 200 million, 33%) went to the state budget, of which more than HUF 30 billion (€ 100 million) in gambling tax (17% of revenue), HUF 9 billion (€ 30 million) in personal income tax payable on prizes (5%). A part of the gambling tax is earmarked for sports and the National Cultural Fund, as is stipulated by law. This resulted in HUF 4.7 billion (€ 20 million) going to sports and HUF 10.1 billion (€ 30 million) going to the Cultural Fund. An additional HUF 1 billion (€ 3 million) was spent by the lottery directly in the form of donations and sponsorships to culture, sports and healthcare. For more information go to: www.szerencsejatek.hu