Until 2022, online gambling was actually controlled by the state monopoly, from 2023 the market is open to private operators

Introduction: from monopoly to competition

Until 2022, the online betting market in Hungary was de facto controlled by the state-owned operator Szerencsejáték Zrt.; private companies were denied access to online betting, which has repeatedly become the subject of controversy and decisions at the EU level.

In 2022, amendments to Act XXXIV of 1991 on Gambling Operations were adopted, which from January 1, 2023 opened online sports betting for licensees from the EEA, subject to strict requirements.

What exactly has changed in 2023

End of monopoly in online betting. From now on, operators from the EEA can apply for a Hungarian license for remote sports betting. Local representative/branch is required and compliance with technical and compliance standards.

Online casinos remain limited. Contrary to the liberalization of betting, online casinos are still tied to land concessions (only holders of offline casino concessions in Hungary can operate online casinos).

Entry threshold: key requirements for applicants

Experience in licensed online gambling for at least 5 years (EEA).

A branch in Hungary with an authorized capital of ≥ HUF 1 billion.

HUF ≥ provision 250 million and HUF license fee 600 million (plus admin. collection ~ HUF 10 million and supervisory payments under limits).

Strict compliance: KYC/AML, player protection plan (RG), technical standards SZTFH.

Role of SZTFH regulator

SZTFH (Supervisory Authority for Regulatory Affairs) issues licenses, approves technical requirements and enforces (up to blocking sites and payment channels). Jurisdiction also extends to foreign sites if they are accessible from Hungarian IPs.

Which segment remains "state"

Land sports betting is the prerogative of the state; liberalization affected precisely remote rates.

Online casinos - possible for operators with a ground concession; there is no general market "free" license for purely online casinos.

Market impact: What has changed for players and operators

• The emergence of competition in online betting: more brands, a wider line, improved services (live speed, applications, payments) while maintaining the mandatory Responsible Gaming tools.

• The high entry threshold (capital, fees, experience) restrains "random" applications, but makes the market predictable and secure. Stable SLAs for payments, mature KYC/AML and technical readiness for SZTFH requirements are required.

• Changing the monopoly model to regulated competition in online rates: increased transparency of the tax base (GGR), narrowing the "gray sector" due to licensing and blocking.

Brief chronology

1991: Gambling Act (Act XXXIV of 1991) is adopted - the basic framework for regulating gambling.

2014: tightening rules - online casinos only for land-based casino concessionaires; online rates de facto under the monopoly of the state operator.

2022 → 2023: the amendments open remote sports betting for operators from the EEA from 01. 01. 2023 when meeting high requirements.

What's Next (2025-2030): Moderate growth under strict supervision

The liberalization of online rates has already raised the bar for service and manufacturability. Point expansion of new EEA brands, further strengthening of Responsible Gaming and improvement of payment infrastructure are likely. At the same time, the limited size of the market and the preservation of a "closed" mode for online casinos will keep growth in a stable, controlled trajectory.

Until 2022, online rates in Hungary were actually under the monopoly of the state operator; since 2023, the market for remote rates is open to private companies from the EEA, ready to fulfill strict requirements for capital, experience and compliance. Online casinos remain tied to land concessions. The result is regulated competition instead of a monopoly and a higher standard of player protection and service quality.