New Gambling Regulation in Hungary: Hungarian Gambling Scene Overview
April 10, 2023 Stephen CharlesworthThe gambling state monopoly in Hungary is about to end thanks to the significant amendment to the country’s Act XXXIV of 1991. As of January 2023, with the new rules coming into effect, local and EEA private casinos and sportsbooks will be allowed to apply for licences from the SZTFH. Let’s learn more about the new gambling regulation in Hungary.
Several technical changes have been introduced to facilitate the amendments to the Hungary gambling law. The biggest priority for the Hungarian authorities remains the safety and protection of players from the country. Therefore, there are substantial requirements for local and EEA operators. We’ll discuss those in more detail in the following parts of this article.
Online Gaming Legislation: Before and Now
The Hungarian gambling operators are regulated by Act XXXIV of 1991. Before the new gambling regulation, the country’s sole legal sports betting services provider was the state-owned Szerencsejáték Zrt. Only local operators were able to apply for an SZTFH licence to offer online casino games. Offshore sites, including some of the best online casinos in Hungary had to have a valid gambling licence from an international authority like the UKGC and the MGA.
A shift started in 2017 when the Court of Justice for the European Union (CJEU) declared it unlawful for Hungary to exclude European operators from the licensing process. This resulted from a case brought to the court by the popular Unibet casino brand, claiming that it is impossible for offshore operators to obtain a licence. The latest Hungary online gaming legislation will have many advantages, including:
- More variety of legal online casinos and sportsbooks
- Better regulated gambling market with fair competition
- Overall safer and more secure gambling experience
Requirements for Gambling Operators in Hungary
Hungary is rather strict regarding offshore operators trying to obtain a licence from the SZTFH. They should have at least five years of experience in offering legitimate and safe online casino gaming to players from one or several countries part of the European Economic Area (EEA). Similarly, the Hungarian authority will not consider companies that have been involved in unlicensed gaming within five years of the application date.
Another condition an operator must meet is share capital of at least HUF1bn (£2.4m/€2.8m). Additionally, the operators should pay an application fee and a licence fee to the Hungarian State Treasury. A supervision fee of 2.50% and a gaming tax of 15% of the gross gambling revenue are also applicable.
What Will Change for Hungarian Online Casino Players
It’s already clear that the new gambling regulation in Hungary will have a positive effect on players from the country. The sector will, undoubtedly, become safer. Online casinos and sportsbooks must uphold the highest industry standards to operate for Hungarians. Expectedly, in the future, players will have more variety in terms of legal gambling sites to choose from.
As per the new changes with the Hungary online gambling laws amendment, you can use credit cards issued by a secure payment provider like, for example, Mastercard. In addition, you can now have multiple balances linked to each game and the option to cash out early if the game’s design allows it.
New Gambling Regulation in Hungary: Conclusion
Let’s do a brief recap of the new gambling regulation in Hungary. The online casino and sports betting sectors will become way more accessible for offshore operators. They will be able to apply for licences from the Hungarian Supervisory Authority of Regulatory Affairs (SZTFH). This will positively affect players’ gambling experience with more variety in terms of gambling sites and safer conditions.
FAQ
Next, we will answer the most common questions by Hungarian players online. This will help shed more light on the topic of the new Hungary online gambling laws and give you further details about its reflection on the gambling sector in the country. Without further ado, here’s our short FAQ section:
1️⃣ Is gambling regulated in Hungary?
Yes, the gambling sector is regulated by Hungary's Act XXXIV of 1991. The Supervisory Authority of Regulatory Affairs (SZTFH) is the official authority in charge. Under the new gambling regulation in the country, local and offshore online casino and sportsbooks operators can apply for and obtain a licence to legally set up their services for Hungarian players.
2️⃣ Are there any offshore online casinos in Hungary?
Some of the best online casinos in Hungary are offshore-based. Prior to the latest changes to the gambling regulations in the country, these operators had to have a valid gambling licence from international regulators like the UKGC and the MGA. As per our conclusion, now they must obtain a licence from the local Supervisory Authority of Regulatory Affairs (SZTFH).
3️⃣ How is sports betting affected by the Hungarian gambling law amendment?
Prior to the changes of the Hungary online gaming legislation, the sports betting sector was entirely state owned with the only such provider being Szerencsejáték Zrt. Following the latest amendments in the country, private local and offshore operators will be able to apply for obtaining an SZTFH licence to legally establish their services for Hungarian players.
4️⃣ What are the requirements for gambling sites in Hungary?
There are many requirements for online gambling sites in Hungary. An operator must have at least five years of experience in offering legal online casino gaming in country/ies part of the European Economic Area (EEA). Among other things, the operator should also have share capital of at least HUF1bn (£2.4m/€2.8m). Licence fee must be paid to the Hungarian State Treasury.
5️⃣ How are players affected by the new gambling regulation in Hungary?
In one word – positively. The new gambling regulation in Hungary will lead to an overall safer gambling experience for players from the country. Other changes for gamblers under the latest rules include the ability to use credit cards, have multiple balances linked to each game, and cash out early if the game is designed in such a way.
