Eva Karai
Judit Nagy
Janos Erdei
Maria Lakatos
Eötvös Loránd University, HU-1053 Budapest, Egyetem tér 1-3., Hungary
Budapest University of Technology and Economics, HU-1111 Budapest, Műegyetem rkp. 3., Hungary
DOI: https://doi.org/10.31410/ITEMA.2018.438

2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4

Abstract

Gambling industry has its features, especially from accounting perspectives. The different regulations by countries may influence the accounting practices and so the form and content of the presented financial statements, shadowing the clearness of information used by decision-makers. Our study aims to provide an update report about the characteristics of the European industry using the financial statements of gambling companies and examine whether the variations in the recognition and measurement of revenue and gambling tax might have a significant impact on comparability and understandability of financial statements. As for European IFRS statements, empirical results show differences in the accounting of gaming revenue and gambling tax, depending on the country where the company was registered. If specific accounting guidance for the gambling sector existed, it would enhance the transparency of financial statements.

Key words
gambling companies, IFRS, revenue recognition, gambling tax

References
[[1] Beco, E. (1996). Prevalence surveys of problem and pathological gambling in Europe: The cases of Germany, Holland and Spain. Journal of Gambling Studies, 12(2), 179-192.
[2] Demetrovics, Z., Urbán, R., Nagygyörgy, K., Farkas, J., Zilahy, D., Mervó, B., Reindl, A., Ágoston, C., Kertész, A. & Harmath, A. (2011). Why do you play? The development of the Motives for Online Gaming Questionnaire (MOGQ). Behavior Research Methods, 43(3), 814-825.
[3] Körmendi, A. (2011). Cognitive distortions and personality traits in gambling players. (In Hungarian: Kognitív torzítások és személyiségvonások vizsgálata szerencsejátékosoknál). University of Debrecen.
[4] Planzer, S., Gray, H. M., & Shaffer, H. J. (2014). Associations between national gambling policies and disordered gambling prevalence rates within Europe. International Journal of Law and Psychiatry, 37(2), 217-229.
[5] Paton, D., Siegel, D. S., & Vaughan Williams, L. (2002). A policy response to the e-commerce revolution: the case of betting taxation in the UK. The Economic Journal, 112(480).
[6] Philander, K. S. (2013). A normative analysis of gambling tax policy. UNLV Gaming Research & Review Journal, 17(2), 2.
[7] Gu, Z. (2002). Performance gaps between US and European casinos: A comparative study. UNLV Gaming Research & Review Journal, 6(2), 53.
[8] Gu, Z., & Gao, J. Z. (2006). Financial competitiveness of Macau in comparison with other gaming destinations. UNLV Gaming Research & Review Journal, 10(2), 1.
[9] Eadington, W. R. (2011). After the great recession: The future of casino gaming in America and Europe. Economic Affairs, 31(1), 27-33.
[10] Thompson, W. N. (1998). Casinos de juegos del mundo: A survey of world gambling. The ANNALS of the American Academy of Political and Social Science, 556(1), 11-21.
[11] Finger, R. (2013, Jun 30). Online Gambling: A Pastime Whose Time Has Come. Forbes. Retrieved from https://www.forbes.com/sites/richardfinger/2013/06/30/online-gambling-a-pastime-whose-time-has-come/
[12] Andor, G. & Rózsa, I. (2013). Should Codification emerge in IFRS? Does form of regulation matter? Acta Polytechnica Hungarica, 10(8), 187-204.
[13] Albu, C. N., Albu, N., Pali‐Pista, S. F., Gîrbină, M. M., Selimoglu, S. K., Kovács, D. M., & Strouhal, J. (2013). Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic, Hungary, Romania and Turkey. Journal of International Financial Management & Accounting, 24(2), 140-175.
[14] Ahmed, A. S., Neel, M., & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence. Contemporary Accounting Research, 30(4), 1344-1372.
[15] Wagenhofer, A. (2014). The role of revenue recognition in performance reporting. Accounting and Business Research, 44(4), 349-379.
[16] Philander, K. S., Bernhard, B. J., Wimmer, B. S., Singh, A. K., & Eadington, W. R. (2015). US casino revenue taxes and short-run labor outcomes. Journal of Policy Modeling, 37(1), 35-46.
[17] European Casino Association. (2015). ECA’s European Casino Industry Report 2013. Retrieved from https://www.europeancasinoassociation.org/151.0.html
[18] Deloitte (2017) International Tax Highlits. Deloitte
[19] PWC (2016) Worldwide Tax Summaries. PWC

karai_nagy_erdei_lakatos_are_revenues_comparable_the_case_of_european_gambling_companies_pp_438-445

Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Republic of Serbia