Number of gaming machines plunges after tax hike

Tourism

The number of gaming machines in Hungary plunged 53% after the monthly tax on the machines was raised from HUF 100,000 to HUF 500,000 on November 1, Krisztian Molnar, who oversees the the machines for the National Tax and Customs Office (NAV), said on Thursday.

The number of gaming machine rooms fell by 47% after the tax was raised, Mr Molnar said at a talk organised by fortunaweb.hu. Last year there were 21,500 such gaming rooms in the country, he added.

Hungarian Gaming Association (MSzSz) head Istvan Schreiber said the number of gaming rooms was likely to continue to drop in the coming months, falling as much as 80%.

The higher tax is expected to cut revenue of gaming machine operators by HUF 20bn to HUF 60bn this year. The tax they pay on the machines is seen falling to about HUF 30bn.

Mr Schreiber said it would cost gaming machine operators about HUF 200bn to meet new technical requirements on server-based machines by the deadline, at the end of 2012. It will take about three and a half years to recoup the investment, he added.

He estimated that one-fifth of the 1,100 businesses that operate gaming machines could leave the segment for good, resulting in the loss of more than 10,000 jobs, 5,500 in the gaming sector and the rest in the catering sector.

ADVERTISEMENT

17% of homeowners plan renovations this year Analysis

17% of homeowners plan renovations this year

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.