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Online gambling until 2022 is a monopoly
Introduction: The'only window' for online betting
Before the 2022 reform, the Hungarian online sports betting market actually operated according to a monopoly scheme: the state-owned company Szerencsejáték Zrt (brands Tippmix/TippmixPro) was the only legal operator of distance betting. Private companies could operate land-based casinos under concession and offer online casinos only as an extension of such a concession, but online sports betting for private operators was closed. This created an understandable but "narrow" contour: high control, predictable fiscal returns - and limited competition in the product.
Legal Framework and Key Milestones
Act XXXIV of 1991 on Gambling Operations is the basic law that set the architecture of regulation.
The 2014 amendments recorded:- online casinos are available only to land concession holders;
- online rates are de facto at the state operator Szerencsejáték Zrt.
- In the 2010s, the model repeatedly became the subject of criticism and litigation at the EU level, but continued to be applied domestically until 2022, when parliament approved the liberalization of remote rates (entered into force in 2023).
Role of Szerencsejáték Zrt: product, channels, processes
Product line.
Prematch and live betting on football, hockey, handball, basketball, etc.; local focus - Hungarian leagues and national teams.
Statistical markets developed moderately, the priority is "massive" outcomes and neat margins.
TippmixPro acted as a digital showcase: web + mobile version; applications were developed carefully, complying with regulatory requirements.
Finances and payments.
Payments - in strict SLAs, with understandable limits and KYC thresholds.
The bonus policy is restrained, the emphasis is on the stability of the service, and not on the "promo race."
Revenues were directed to the budget and social programs (sports, culture) - an important element of public legitimation.
Responsible play (RG) and compliance.
Hard age barrier 18 +, mandatory identification.
Limit tools, "time out" and self-exclusion; restrained push marketing, especially with signs of risky behavior.
Full integration with AML/KYC procedures and transaction monitoring.
What was allowed - and what was forbidden to private traders
Allowed:- The state operator - a full cycle of online rates (product, payment flows, marketing within the law).
- Land casino concession holders - online casinos as an "extension" of offline (not a free online license).
- Private companies without a Hungarian concession - to offer online bets on the Hungarian market.
- Unlicensed foreign sites - working with the Hungarian audience: access blocks and restriction of payment channels were used.
- Aggressive advertising practices: promises of easy money, "risk-free" offers, targeting of minors.
Marketing and media: the "state tone" of communication
Advertising was based on moderation, RG disclaimers and age tags.
Sports sponsorship - within strict visibility and labeling rules.
Affiliate "gray" marketing was not encouraged, the regulator monitored tones and creatives.
How the control ecosystem worked
Extraterritorial approach: If the site/app was accessible from Hungary, they were subject to local requirements.
Blocking registers and restrictions on payments in favor of unlicensed sites were applied.
The regulator demanded that payment providers comply with the rules, eliminating "workarounds."
Pros and cons of a monopoly online model
Pluses
1. Predictability for the state: tax and social returns, transparent reports.
2. Uniform RG/AML standards, low tolerance for aggressive promo.
3. Focus on local sports and culturally "safe" communication.
Minuses
1. Limited competition → slower speed of product innovation (depth of live, narrow statistical markets, UX experimentation).
2. Restrained bonus economy → lower attractiveness for "promo hunters."
3. Dissatisfaction with a part of players accustomed to the wide lines and functions of international brands.
Why the model had to be changed
European practice pressure and criticism due to limited competition in online betting.
Need for technological updates: faster live coefficients, better mobile UX, more transparency of payments and telemetry of service quality.
The need to narrow the "gray zone": licensing private traders at a high entrance threshold increases transparency instead of "race underground."
What the monopoly "handed" to the liberalized market
By the time of the reform of 2022, discipline was built:- Strict RG/AML circuit as normal;
- SLA for payments and accurate payment infrastructure;
- Discreet marketing and understandable communication rules.
These elements have become a "skeleton," on which private EEA operators in remote rates have begun to "grow" since 2023 - already in a competitive environment, but with the same compliance bar.
Short chronology (before reform)
1991 - Basic Gambling Act adopted.
2014 - the format is fixed: online casinos only for holders of land concessions; online betting de facto by Szerencsejáték Zrt.
2015-2021 - application of locks and payment restrictions to unlicensed sites, disputes at the EU level.
2022 - parliament approves the liberalization of remote rates; from 2023, private EEA operators can obtain a license for online betting (with strict criteria).
Until 2022, online betting in Hungary actually remained a monopoly of Szerencsejáték Zrt - a model with high manageability, transparent fiscal returns and strict RG/AML, but with a restrained pace of product innovation. It was this "tough but mature" infrastructure that made it possible to painlessly switch to regulated competition from 2023: the market opened to private EEA operators, retaining the main values of the monopoly era - player safety, transparent payments and predictable rules of the game.