The taxes on gambling, tobacco and alcohol are going up in Hungary.

GamblingCompliance reports that the government is targeting so-called non-essential spending in an effort to counter falling revenues.

Gaming operators have been paying HUF100,000 per month—about $500—per street gaming machine and HUF120,000 for casino slots.

Casinos also pay on a sliding scale based on gross gaming revenue. Lotteries, bingo and keno games are taxed on their pools. There are local taxes of 2 percent as well.

Slot operators reportedly have seen 10 percent declines in revenue in each of the last two years.

Economy Minister György Matolcsy has said that the current flat tax rate on gaming machines is too low in many cases.

Any tax changes will be enacted 45 days after passage of the law, which could occur by September 15.

The gaming industry was already under pressure from the center-right Fidesz party, which is concerned with the social cost of gambling.

The government is looking for HUF 51.3 billion this year from tax on gambling. In the first seven months of 2011, HUF 28.9 billion was collected.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.