Online Gaming in Hungary

In January 2023, Hungary passed new legislation to liberalize the online gambling market. This move allows private operators to apply for licenses to offer online gambling services, ending the state monopoly. The new regulation outlines a detailed licensing process for private operators, including requirements for financial stability, technical standards, and responsible gambling measures. Szerencsejáték’s monopoly over online sports betting ended, but online casino games remain reserved to operators that already hold a Hungarian land-based casino concession.

Hungary licenses and regulates online poker and online horse betting. The regulated domestic market opened in 2012 after Hungary amended its gambling laws in 2011. While operators may apply for licenses to provide online poker and horse betting, the state-owned lottery organizer, Szercencsejáték, maintains a monopoly on online casino games and sports betting. Under the current rules, only land-based casino concessionaires may offer online casino (including slots and table games), and online poker is treated as a casino game; online sports betting is open to all qualifying EEA operators.

The January 2023 reform opened online sports betting to EEA-based operators, but online casino remains restricted to holders of a Hungarian land-based casino concession — a restriction the EU Court of Justice found contrary to Article 56 TFEU in the Sporting Odds case in 2018. LVC Diamond operates all three licensed online casino sites.

The Hungarian Tax Authority is responsible for approving all online gaming sites and licenses. Licenses are issued for an initial five-year period. After the five-year term, operators may apply for an additional five-year license. Net revenues are taxed at 20% and payable to the Tax Authority. Operators need to meet a minimum registered capital of HUF 200 million (approx EUR 690,000) in a member state of the European Economic Area (EEA) or within Hungary, have relevant experience in the industry, and have a certified gaming and business system. ISPs must block unlicensed sites and banking institutions must freeze the bank accounts of unlicensed operators if required by the Tax Authority. Unlicensed operators are subject to fines up to HUF 100 million (approximately EUR 345,000).

In April 2015, the National Tax and Customs Authority in Hungary ordered the nation's media authority to ISP-block 82 allegedly illegal online gambling operators.

In December 2017, Hungary approved amendments to its gambling legislation that required local financial institutions to block payments to and from unauthorized gambling sites.

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