Online Gambling in Hungary
Background
Hungary’s online gambling regulatory environment is slowly evolving toward an open, regulated environment at the urging of the European Commission (EC). But it’s not there yet.
The Hungarian Gambling Act of 1991 Act XXXIV (The Act) was passed to govern all gambling activities including lotteries, sports betting, and casino games – largely provided by state run monopoly operators. However, this framework did not adequately address the rise of online gambling leading to a market described by a European Parliament committee study as ‘passively allowing’ online gambling.
Amendments to The Act to regulate online gambling were introduced in 2013 with further significant amendments in 2014 and 2015. But operators based outside Hungary were excluded from participation. In 2016 Hungaryʼs National Tax and Customs Office began enforcement measures blocking unlicensed online betting sites (ie all site other than local monopoly operator Szerencsejáték).
In 2018 The European Court of Justice of the Union (ECJ) ruled that key aspects of Hungary’s existing system were inconsistent with EU freedom of services laws and therefore could not be practically enforced.
Long awaited amendments to the Act were passed and came into effect January 1 2023. While participation in the online sports betting market was liberalised (on paper at least), online casino game licences remain available only to Hungarian land-based casino concessionaires. It is a situation that will likely be challenged again in EU courts in the future.
Current Regulations
The Act with its amendments to include online gambling provisions is the foundation law. Szerencsejáték Felügyelet or the Supervisory Authority for Regulatory Affairs or (SARA) is the authority responsible for regulation and licensing.
The regulatory system still limits online casino licenses to operators with existing land-based casino operations and maintains a state monopoly on sports betting and lotteries through Szerencsejáték Zrt.
SARA continues to maintain a blacklist of unlicensed gambling websites, which includes many of the best known own brands operating under license in other EU countries.
Major Operators
Due to the restrictive nature of the licensing regime, the number of major online gambling operators in Hungary is limited:
- Szerencsejáték Zrt.: The state-owned company holds a monopoly on sports betting and lotteries. It is the dominant player in the Hungarian gambling market, both online and offline.
- Las Vegas Casino Group: This group operates several land-based casinos in Hungary and holds licenses for online casino games. It is one of the few private entities allowed to offer online gambling services.
- TippmixPro: Operated by Szerencsejáték Zrt., TippmixPro is the primary online sports betting platform in Hungary.
