Gambling tax in Hungary will rise in November by 25 per cent to HUF125,000 ($600) as part of a measure to fill a HUF100bn gap (approximately $483.5m) in this year's central budget resulting from slower-than-expected growth.
In addition, from January next year a new quarterly tax will be introduced - 20 per cent of any income in excess of HUF900,000.
Excise duty on cigarettes and spirits is also likely to increase as part of the government’s plan to raise taxes on items not connected to everyday necessities, while halting every expenditure that could be postponed by one or two years.
According to László Pálhegyi of EuroPlay, which is based in Hungary, the number of machines currently operated across the country has continued to drop over the past seven years. In 2004 there were more than 33,000 machines in operation across the street market and casinos. However, an increase in gaming tax from HUF25,000 to HUF100,000 saw this number decrease gradually to 23,000 in operation today.
Commenting on the proposed further increase in tax, Pálhegyi told InterGame: "After this increase is implemented I foresee that 25 to 30 per cent of the machines currently in operation will be removed from the market, but it is difficult to predict what the final figures will be, especially as the government is increasing the tax on alcohol and tobacco as well and then we have a smoking ban coming into place in January."
