Online casino market will be divided

Even from autumn, the new regulation can enter into force, which states that only that organizer will be entitled to organize online casino game who earned a casino concession. The amendment is from Erik Banki MP (Fidesz). In seven of eight concessions, Las Vegas Casino Ltd. of Andy Vajna and Aranybonusz 2000 Ltd. of Gabor Szima have. The economy ministry doesn’t plan call for tenders for game organizing right, mno.hu said.

The proposal, under which the law would take effect on September 1, says: only players with Hungarian IP addresses are enabled to access, and the organizer has to allow the remote access for the tax authorities. The latter is justified with the verifiability of tax revenues and the protection of the players.

You can easily identify who will benefit from this on the Hungarian online casino market worth about HUF 20 billion.

The Ministry of National Economy (MNE) issued 7 casino concessions from the possible 11; 5 from Budapest to the Las Vegas Casino Ltd., belonging to the sphere of interest of Andy Vajna, and one from Debrecen and one from Nyiregyhaza to Aranybonusz Ltd. of  Gábor Szima. These concession last until 2024, the eighth from Sopron will expire at the end of the year. 75% of Casino Sopron is owned by Casinos Austria International GmbH, the rest belongs to the Szerencsejatek Zrt., and the concession cannot be extended.

Both of the two people got the licence on “truth basis”, not by a tender. For that, at least 10 years of activity and full transparency needed and the companies mustn’t have common charge payment failure. Ildiko Bango Borbely Socialist MP said, the proposal’s beneficiary is the commissioner of films, Andy Vajna, who has 5 casinos. Moreover, he doesn’t have to pay VAT after the casino revenues, which means HUF 7 billion plus income. Andy Vajna and Gabor Szima didn’t want to comment to mno.hu.

It cannot be understand why the government doesn’t give the concessions, since it would represent a serious public revenue with gaming tax and concession fees. The ministry estimates the business can pay HUF 10.5 billion to the budget, after last year’s 5.6 billion. With the 3 remaining concessions, it can be 30% more. László Somorjai gambling expert said this oligopoly is clearly a good deal for the game organizers, but the IP address restriction, the high gaming tax and the PIT on the winnings impose barrier to the increase. According to the expert, people primarily from the neighboring countries and Hungarians living abroad would play, and the blocking of operators was a false step because players didn’t get a real alternative, mno.hu said.

Andy Vajna’s Las Vegas Casino had HUF 7.7 billion revenue and HUF 3.1 billion profit after tax in 2014, which was taken out as dividends.

Tropicana Casino, which license expired last year, brought a HUF 483 million to Bar-Co Vendéglátóipari Ltd, the owner took out HUF 168 million as dividends. Tropicana was operated by Szerencsejáték Zrt. recent years. Belvárosi Kaszinó Ltd. belonging to the state paid HUF 1.08 billion with VAT, from which  HUF 293.5 million last year. The Vajna empire is waiting for the players with 824 machines in 5 casinos, 4 thousand sqm.

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Source: http://mno.hu