New gambling law: Double fees, no tender required
Legislation approved by Parliament this week will allow the state to choose “reliable gambling organizers” to establish casinos or other gambling houses in Hungary without calling a tender. The new procedure to determine appropriateness for a given company would assess its past reliability and compliance with regulations.
“Reliable gambling organizers” is defined within the bill as “companies … who have a transparent organizational structure, have never made a late tax payment, have never been fined more than HUF 5 million and have organized gambling activities in Hungary for at least 10 years.”
Prospective gaming providers would reportedly pay a concession fee of minimum double the current rate for such establishments. Per the proposed draft of the 2014 budget bill, the government set the minimum annual concession fee for operating category-II casinos in Hungary at HUF 377 million for those in Budapest or Pest County, and HUF 54 million for those located elsewhere in the country.
Three category-II casinos are currently operating in Hungary: Budapest’s Tropicana and Las Vegas casinos and the Casino Sopron, with nine slated to open in 2014. The central budget therefore targets HUF 2.1 billion in revenue from casino concession fees from the 12 outlets.
Revenue from gaming taxes in 2013 is forecast to reach HUF 47 billion.
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.