Hungary Online Casino Laws Compared to Other EU Countries
March 12, 2025 Tony ChristopherOver the last few years, Hungary has made significant changes in an attempt to soften its online gambling regulations. Still, the country maintains some of the most restrictive laws compared to many of its European counterparts. Stay tuned as we discuss the Hungarian online casino laws and how they stand out from other, more liberal EU countries.
Key Aspects of Hungary’s Online Casino Regulations
There are several key aspects of Hungary’s online casino regulations, including licensing requirements, market access, taxation, and regulatory challenges. In the following paragraphs, we’ll review each of them in more detail. This will give you a general idea of the latest online gambling laws in Hungary before we proceed with a comparison to other EU countries.
Licensing Requirements in Hungary
Laws for online casinos in Hungary require operators to have a physical presence in the country before they can apply for an internet gambling license. This physical presence entails a concession for land-based casinos, which is a rather significant limitation, especially for foreign operators. It’s even been ruled as discriminatory by the European Union Court of Justice.
Despite that, the requirement remains in place, making it almost impossible for foreign brands to set up their operations in Hungary. That said, eligible operators must obtain a license from the Supervisory Authority for Regulatory Affairs (SZTFH), pay a one-time licensing fee of HUF 600 million, and prove they have at least HUF 1 billion in share capital.
Market Access
As already mentioned, only companies holding a concession to operate a land-based casino in Hungary can apply for an online gambling license. When it comes to sports betting, however, things are different. In January 2023, the government ended its state monopoly, allowing private operators from the European Economic Area (EEA) to enter the market.
Online Gambling Taxation
According to Hungary’s online gambling rules and regulations, online sports betting and horse racing operators are taxed at a flat rate of 15% on their monthly net gaming revenue. For online casinos, this rate is set at 20%. In addition to that, there’s a 9% corporate income tax on gambling companies’ profits.
Regulatory Challenges
Despite the recent changes to the online casino regulations in Hungary, foreign operators still face major, arguably impossible, requirements and bureaucratic hurdles to set up their operations in the country. Since 2015, multinational gambling groups have initiated a great number of cases against the Hungarian state, claiming there are terms clearly favouring state monopolies.
Despite the positive changes in the online sports betting sector, the situation with the online casino market remains still very much shifted in favour of Hungarian operators. There are instances where international brands may challenge the regulatory environment and choose to operate without a local license, despite the legal risks.
Online Casino Laws: Hungary vs. other European Countries
When placed alongside other European countries, Hungary’s approach to online gambling appears relatively strict, especially regarding online casinos. The country has a long way to go if it wants to align with its more liberal counterparts. To paint a clearer picture, we’ve included more specific details in the table below:
| Country | Licensing Requirements | Taxation Rates | Market Structure | Key Features |
|---|---|---|---|---|
| Hungary | Operators have a land-based casino concession; HUF 600 million license fee; 5 years EEA experience required | 15% for online sports betting and horse racing; 20% for online casinos; 9% corporate income tax on profits | State monopoly on online casinos; competitive licensing for sports betting | High barriers to entry; no licenses for foreign operators yet |
| Belgium | Online casinos must obtain a license from Belgium Gaming Commission (Kansspelcommissie) | 11% on gross gaming revenue for online casinos; 21% on gross revenue for online sports betting | Highly regulated market with limited licenses available; players protection is a priority | Similarly to Hungary, operators must have a physical establishment in Belgium |
| Czech Republic | Requires a national license from the Ministry of Finance; local presence not required | 23% tax rate on online casinos and online sports betting | Competitive market with several operators | High compliance and reporting requirements; strict player protections policies in place |
| Denmark | Requires a national license from the Spillemyndigheden; no physical presence needed | Flat tax rate of 28% tax on gross gaming revenue | Competitive market with many operators | Focus on responsible gambling practices and player protection |
| Estonia | Requires a national license by the Estonian Tax and Customs Board (ETCB); local presence not required | 5% tax rate on gross gaming revenue | Open market with numerous licensed operators | Simplified licensing process for EEA entities |
| Germany | Requires a federal or state license; varies by state | Around 20-30% depending on the state | Recently reformed to allow more competition, but still restrictive | Complex regulatory landscape varies by region |
| Greece | Requires a national license from the Hellenic Gaming Commission; local presence not required | 35% on online gambling revenue; significant portion goes towards social programs and charitable causes | Competitive market with multiple licensed operators | High tax rates and strict licensing conditions; heavy focus on responsible gambling and player protection |
Conclusion
The European gambling market is largely regulated, with most countries enforcing strict licensing procedures and regulatory requirements for online gambling operators. They focus heavily on responsible gambling practices and player protection. KYC (Know Your Customer) checks and AML (anti-money laundering) compliance are mandatory.
The online casino laws in Hungary also heavily focus on player protection. The market remains one of the most restrictive in Europe when it comes to licensing new online casinos. There are significant entry barriers, especially for foreign brands. The 2023 changes in the online sports betting sector give us grounds to believe that online casino regulations may also change in the future.
FAQ
Can you gamble online in Hungary?
Yes, online gambling was legalized in Hungary in 2013. Since then, several amendments have been made to the country's online casino regulations, but they remain rather restrictive, especially when it comes to foreign operators. Still, Hungarian players have quality options for casino games and sports betting.
Which European country has the best gambling laws?
Most countries in Europe have their own gambling laws and official industry regulators. They require a license to allow national and international brands to operate on the market. Countries like Denmark, Germany, and Belgium stood out during our comparison with fairly liberal and strictly regulated gambling sectors.
Does Hungary have casinos?
Yes, there are several brick-and-mortar casinos in Hungary, including Las Vegas Casino and Tropicana Casino in Budapest, Grand Casino in Debrecen, and more. All of them are licensed by the Supervisory Authority for Regulatory Affairs (SZTFH) and operate within the country's latest legal and safety requirements.
