Due to the spread of syphilis, Empress Maria Theresa banned all prostitutes from Vienna, and from 1768 onwards, Austrian women sold their charms in the Hungarian capital. At the time, women offered their services on the streets, in entertainment venues, around the pontoon bridge near Vigadó, in pubs, inns, and markets.

In the early 1800s, the most well-known lower-class brothels of Pest-Buda operated in Kék Kakas (now Székely Mihály Street), among which Luft Rézi's establishment was the most popular. Nobles and wealthier citizens either rented private rooms or indulged their desires in one of the thermal baths. Women had to be skilled in card games, music, singing, and engaging conversations. To Europe's shock, the first mixed-gender swimming pool was established in 1811 at the Rácz Bath in Buda.

After the 1848-49 Hungarian Revolution was crushed, imperial absolutism tolerated prostitutes in Pest and Buda because they served to ease social tensions and, under the leadership of Baron József Prottmann's police force, acted as informants who betrayed hiding patriots. 

The first large-scale entertainment venue, "Neue Welt," opened in 1861 on the site of today's Vígszínház. Built by the Tüköry brothers and operated by underworld boss Linzer Tóni, the 500-seat venue featured a female dance troupe performing completely nude on stage, after which they could be taken to private rooms. Similar establishments included the "Anker Saal" near the current Opera House and the brothel-concert halls such as "Jó meleg akolhoz" and others in Király Street, like"Mandl mulató," "Jó pásztor," "Fogazó Kacsa," "Flóra-terem," "Walhalla," "Vörös macska," "Fekete macska," "Tarka macska," "Kék macska," and the "Foliès Caprice" at the Town Hall.

In 1872, Budapest became the center of global human trafficking. The trade of young women was orchestrated by Thaisz Elek, the city's first police chief, and his wife, Reich Fáni, a madam who controlled Hungary's underworld. Their agents gathered "fresh meat" not only from poorer regions of the Hungarian Kingdom but also from the Balkans and Eastern Europe.

Hungarian women exported to Russia became so successful that even during the Soviet era, all prostitutes, regardless of origin, were referred to as "vengerka" (венгерка), derived from the Russian word for Hungary, "Vengrija" (Венгрия).

Similarly, Hungarian women exported to Central and South America achieved remarkable "success." Since the beautiful Hungarian women adapted more willingly to their forced profession than black, mulatto, or local indigenous women, the term "húngara," meaning "Hungarian girl," became synonymous with a promiscuous woman, dancer, or prostitute from 1860 onward.

It is notable that in countries like Argentina, Venezuela, Uruguay, Brazil, and Cuba, where severe female shortages of up to 80% were reported, the population was boosted by nearly 11% thanks to Hungarian women smuggled by Budapest mobsters.

Prostitution was first regulated in 1867, requiring a license that entailed regular taxation and health checks. By 1882, there were 80 brothels and 43 cafés offering sexual services in Budapest, complemented by 1,700 street prostitutes.

Although prostitution was banned in 1950, the communist regime secretly maintained such establishments for its officials and miners brought to the capital to build the metro. One such facility operated 130 meters from here, on the third floor of a building at the corner of Király Street and Kis Diófa Street.