Opening of the online market from 2023 - Hungary

In 2023, Hungary switched from the actual monopoly of the state-owned company Szerencsejáték Zrt to online betting to a multi-license model: private companies from the EEA countries were able to operate in the market subject to new requirements. This marked the biggest shift in Hungarian gambling regulation in years.

What exactly has changed

The monopoly on online betting has been canceled, an open licensing regime has been introduced for operators from the EEA when obtaining a local license. Supervision is carried out by the Supervisory Authority for Regulatory Affairs (SZTFH/SARA). Most of the amendments entered into force on January 1, 2023.

In parallel, the regulator issued technical decrees to the amendments to the Law on Gambling, setting requirements for IT security and integration.

Entry conditions: why the "threshold" is high

Experience and capital. The applicant is required to have at least 5 years of experience in online betting/online games and an authorized capital of at least 1 billion HUF (about €2.8 million).

Reputational filter. SZTFH has the right to reject a company that has conducted unlicensed activities in Hungary for 5 years prior to filing.

License term. Basic - up to 7 years, a specific period is determined by the regulator in the case.

Enforcement and payments. Since the summer of 2023, measures have been activated against unlicensed sites, including blocking payments.

Why in practice the market opened slowly

Despite the legal "openness," in 2023 low activity of foreign applicants was recorded - industry sources noted the absence of submitted applications at an early stage. The reasons are tough filters (5 years of experience, capital, "cleanliness" for illegal work), requirements for local presence and IT integrations.

What about online casinos

Online casinos are still reserved for land-based casino concession holders: they have a separate admission and control logic. The 2023 opening concerns primarily online sports betting; online casino mode is noticeably more closed.

The role of the state operator and competition

The state-owned company Szerencsejáték Zrt (TippmixPro brand) has retained a strong position as a legal operator with deep localization and infrastructure. The new model allows competition: private EEA operators can enter when fulfilling the requirements and approval of SZTFH. In practice, this leads to a gradual, rather than instant, expansion of the market.

What it means to the player

Check your license. A legal site will indicate the permit number, legal entity and contacts in Hungary.

KYC/AML is normal. Verification of identity and payment sources is required.

Safety and controversy. Licensed operators provide data protection, responsible play limits and clear settlement channels.

Caution with "gray" access. Blocking and limiting payments against unlicensed sites - reality 2023 +.

What it means to the operator

Prepare the package for compliance: experience, capital, IT contours, RG policies, local processes.

Assess the risks of rejection due to past illegal work on the Hungarian audience.

Plan the term and budget: the license is issued for a limited period (up to 7 years), compliance is a constant expense item.

Bottom line: Legally, Hungary opened an online betting market from 2023, replacing the monopoly with a competitive model under the control of SZTFH. In fact, the entrance remains strict: a high barrier in experience/capital, "reputational" filters and active enforcement. For players, these are more legal options and higher standards of protection; for operators - a market with potential, but with a serious bar of quality and compliance.