Several different types of gambling are conducted through the Internet in
Hungary, and they are taxed depending on the type of operation. Gambling is
legal in Hungary. Online gambling organizers in Hungary are required to file
tax returns and pay taxes on the basis of self-assessment. The tax rates
vary for different types of gambling operations, including: a casino,
money-winning and gambling machines, draws, and continuously organized
totalizer-type betting. Online gambling is treated as a service, and any
such service provided from the territory of Hungary, through any mode of
communication equipment or networks, is required to be carried out under the
provisions of Act XXXIV of 1991. In Hungary, a game tax is applicable to
income derived from casinos, money-winning and gambling machines, draws, and
continuously organized totalizer-type betting. The mode of application of
the tax and its rate vary. In Hungary, all online gambling organizers are
obligated to file tax returns and pay game taxes on the basis of
self-assessment. The main objective of Act XXXIV of 1991 is to organize
gambling activities, thereby preventing unlicensed gambling. The Act
controls the activities of gambling organizations.