Gambling is regulated under the Gambling Act; online and land-based gambling require licensing, with strict controls and a monopoly on online casino games.
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Regulatory AuthoritySupervisory Authority of Regulatory Affairs (SZTFH)
License CostVaries
Regulation by Activity Type
Casinos
Regulated
Online Casinos
Regulated
Betting
Regulated
Online Betting
Regulated
Lotteries
Regulated
Poker
Regulated
Highlights
Hungary’s gambling sector is regulated by the Gambling Act, overseen by the Supervisory Authority of Regulated Activities (SZTFH).
Online sports betting is open to both domestic and foreign operators, but strict licensing requirements have deterred foreign applicants.
Online casino operations remain a state monopoly, with private operators currently excluded from this segment.
Licences require operators to have a presence in Hungary, local servers, and robust player protection measures.
A unified licensing system allowing multiple gambling services under one license is expected to be introduced in 2025.
Operators who have provided illegal gambling services in the EEA in the past decade are ineligible for a Hungarian license.
Hungarian authorities actively block unauthorized offshore gambling sites and prioritize enhanced player protection and responsible gambling.
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Legislation
Primary Legislation
Hungary’s gambling sector is governed by a comprehensive legal framework that regulates all forms of gambling activities, including land-based casinos, betting, lotteries, and online gambling. The core structure of gambling legislation consists of the following key laws and regulations:
Act XXXIV of 1991 on Gambling Operations (the Gambling Act): This is the principal piece of legislation that establishes the legal basis for organizing and operating all gambling activities in Hungary. It sets out definitions, permitted forms of gambling, and the general regulatory framework for both land-based and online gambling.
Government Decrees and Ministerial Decrees: Several government and ministerial decrees complement the Gambling Act, providing detailed rules for the operation, technical requirements, and supervision of specific gambling activities, including casinos, betting shops, and online gambling platforms.
Recent Amendments: In late 2023 and into 2025, amendments have been introduced to modernize the regulatory framework, particularly for online gambling. These changes aim to streamline the licensing process, enhance player protection, and address technological advancements such as AI and blockchain integration. The amendments also introduce provisions for a unified licensing system and stricter consumer protection measures.
Regulatory Authority
Oversight and enforcement of gambling laws in Hungary are centralized under a dedicated regulatory authority, which is responsible for supervising all gambling activities and ensuring compliance with the legal framework.
Supervisory Authority of Regulated Activities (SZTFH): This is the main regulatory body tasked with the supervision, control, and enforcement of gambling operations in Hungary. The SZTFH is responsible for issuing regulations, monitoring compliance, and implementing player protection measures.
Key responsibilities include overseeing the legal operation of gambling services, blocking unauthorized operators, and ensuring that technological and consumer protection standards are met across all gambling platforms.
License Types
Types of Gambling Licenses in Hungary
Land-Based Casino License: Issued for physical casino operations. The number of licenses is limited and typically granted through a concession system.
Land-Based Betting License: Covers retail sports betting shops, also subject to a concession-based system.
Online Sports Betting License: Available to both domestic and, since recent legislative changes, foreign operators. This license allows for the operation of online sports betting platforms.
Online Casino License: Currently, online casino operations are under a state monopoly, and private operators are not eligible for this license. However, regulatory amendments are expected in 2025 that may introduce a unified license for multiple gambling services, potentially including online casinos.
Lottery and Other Games of Chance Licenses: These cover lotteries, bingo, and similar games, typically operated by the state or through specific concessions.
Application Process and Eligibility
Regulatory Authority: The Supervisory Authority of Regulatory Affairs (SZTFH) is responsible for issuing and overseeing gambling licenses.
Application Submission: Applications must be submitted to SZTFH, including comprehensive documentation on the applicant’s legal, financial, and technical background.
Local Presence: Applicants must establish a presence in Hungary and operate servers within the country.
Eligibility Restrictions: Companies that have offered unlicensed gambling services in the European Economic Area within the past ten years are ineligible for a license.
Player Protection: Operators must implement robust player protection measures, including responsible gambling tools and secure data management.
Technical Requirements: Applicants must demonstrate compliance with technical standards for fairness, security, and anti-fraud measures.
Duration and Renewal Conditions
License Duration: Licenses are typically granted for a fixed term, often five years, though the exact duration may vary by license type and concession agreement.
Renewal: Renewal is possible upon application, subject to continued compliance with regulatory requirements and payment of renewal fees.
Ongoing Compliance: Licensees must maintain all operational, technical, and player protection standards throughout the license period.
Licensing Costs and Financial Requirements
Application Fees: Applicants must pay non-refundable administrative fees when submitting their application. The fee amount depends on the license type.
License Fees: Successful applicants are required to pay an annual license fee, which varies based on the scope and scale of operations.
Financial Guarantees: Operators may be required to provide financial guarantees or deposits to ensure compliance and cover potential liabilities.
Operational Capital: Applicants must demonstrate sufficient financial resources to support ongoing operations and meet regulatory obligations.
Key Requirements for Obtaining and Maintaining Licenses
Corporate Structure: Only legal entities may apply; proof of incorporation and beneficial ownership is required.
Fit and Proper Test: Key personnel and owners must pass background checks for integrity and financial soundness.
Technical Certification: All gaming systems and software must be certified by approved testing laboratories.
Reporting Obligations: Licensees must submit regular reports on financial performance, player activity, and compliance with responsible gambling measures.
Anti-Money Laundering: Strict AML and KYC procedures must be implemented and regularly audited.
Advertising Compliance: All marketing must comply with Hungarian advertising standards for gambling services.
Expected Changes in 2025
Hungary is considering amendments to modernize the licensing system, including the potential introduction of a unified license covering multiple gambling verticals under a single application.
Proposed changes aim to simplify the licensing process, reduce administrative burdens, and enhance player protection requirements.
Operators may soon be able to apply for a single license to offer both online sports betting and casino games, pending legislative updates.
Gambling Tax
Tax Rates for Gambling Operators in Hungary
Type of Gambling
Tax Base
Tax Rate
Land-based Casinos
Gross Gaming Revenue (GGR)
30%
Online Sports Betting
Gross Gaming Revenue (GGR)
15%
Online Casino (State Monopoly)
Gross Gaming Revenue (GGR)
15%
Lottery
Turnover
Various fixed rates depending on game type
Slot Machines (outside casinos)
Monthly fixed fee per machine
HUF 500,000 per machine
Basis for Taxation
Most gambling activities, including online sports betting and casinos, are taxed on Gross Gaming Revenue (GGR), which is the difference between the amount wagered and the winnings paid out to players.
Lotteries are taxed on turnover, with rates varying by the type of lottery product.
Slot machines operated outside casinos are subject to a fixed monthly fee per machine.
Tax Reporting and Payment Requirements
Operators must register with the Hungarian tax authority and submit regular tax returns, typically on a monthly basis.
Tax payments are due monthly, and operators must file detailed reports on gaming activities, GGR, and other relevant financial data.
All tax filings must be made electronically through the official tax portal.
Failure to comply with reporting or payment deadlines can result in penalties, interest, and potential suspension of the operator’s license.
Tax Incentives, Exemptions, and Special Provisions
No general tax incentives or exemptions are available for gambling operators in Hungary.
Special provisions may apply to state-owned or monopoly operators, particularly in the lottery and online casino sectors, but these do not generally extend to private or foreign operators.
Any changes to tax rates or bases are typically published by the Supervisory Authority of Regulatory Affairs and the Hungarian tax authority in advance of their implementation.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participation in any form of gambling in Hungary is 18 years.
Operators are required to implement strict age verification procedures to ensure that no minors can access gambling services. This includes verifying the identity and age of all players before allowing participation, both online and in land-based venues.
Enhanced identification checks are mandatory, especially for online gambling, to prevent underage gambling and ensure compliance with responsible gambling policies.
Prohibited Activities and Game Restrictions
Online casino services are subject to a state monopoly; private operators are not permitted to offer online casino games.
Any company that has provided gambling services illegally in the European Economic Area within the past ten years is prohibited from operating in Hungary.
Unlicensed gambling activities, including unregulated online gambling, are strictly forbidden. The authorities actively monitor and block access to unauthorized gambling websites.
Certain types of games or betting activities may be restricted or only allowed under specific conditions as determined by the regulatory authority.
Advertising and Marketing Limitations
All gambling advertising must comply with strict regulations to prevent targeting minors or vulnerable individuals.
Advertising cannot depict gambling as a means to solve financial problems, guarantee success, or promote excessive play.
Marketing materials must include clear information about the risks of gambling and responsible gambling resources.
Operators are required to ensure that all promotional activities are socially responsible and do not mislead consumers about the nature or chances of winning.
Responsible Gambling Requirements and Player Protection Measures
Operators must provide robust self-exclusion options, allowing players to voluntarily block themselves from gambling activities for defined periods.
Information about responsible gambling and support services for problem gamblers must be easily accessible on all gambling platforms and venues.
Operators are required to implement effective measures to detect and prevent problem gambling, including monitoring player behavior and intervening when necessary.
There are obligations to protect player data and ensure the security of personal and financial information.
Enhanced player protection policies are expected to be further strengthened, with ongoing improvements in age verification, fraud prevention, and support for those at risk of gambling-related harm.
Geographic and Location Restrictions
Land-based gambling venues are subject to location restrictions and must not be situated near schools or other areas primarily frequented by minors.
Online gambling operators must have their servers located within Hungary and maintain a physical presence in the country to ensure regulatory oversight and compliance.
The authorities actively block access to offshore and unauthorized gambling websites to protect Hungarian consumers and uphold local regulations.
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Timeline
Year/Date
Event
1991
Hungary adopts its first Gambling Act (Act XXXIV of 1991), establishing the legal framework for land-based gambling and creating the foundation for regulatory oversight.
2013
Major amendments to the Gambling Act introduce regulation of online gambling, legalizing online sports betting and online casino operations under a state monopoly.
2014
Hungary implements a licensing regime for online sports betting, but online casino and poker remain under state monopoly, and foreign operators are effectively excluded.
2015
The government begins actively blocking unlicensed gambling websites, increasing enforcement against offshore operators targeting Hungarian players.
2022
Hungary announces plans to liberalize the online sports betting market, paving the way for foreign operators to apply for licenses and ending the state monopoly on online sports betting.
2023
New legislation comes into effect allowing foreign companies to apply for online sports betting licenses, provided they meet strict requirements, including a local presence and compliance with player protection measures.
2025 (expected)
Significant amendments to online casino regulations are anticipated, including the introduction of a unified licensing system, modernization of regulatory controls, and enhanced player protection measures.
Requirements
Software Certification and Technical Standards
All gambling software and platforms must undergo certification by independent, accredited testing laboratories to ensure compliance with Hungarian technical standards and fair gaming requirements.
Random Number Generators (RNGs) used in games must be certified for fairness and unpredictability.
Operators are required to implement robust technical controls to prevent unauthorized access, manipulation, or tampering with gaming systems.
Gaming systems must support detailed logging and audit trails for all transactions and player activities.
Integration of new technologies, such as artificial intelligence or blockchain, must adhere to additional security and transparency requirements as set by the regulator.
Data Protection, Privacy Measures, and Server Location
Operators must comply with national and EU data protection regulations, including GDPR, ensuring the confidentiality and security of all player data.
Personal and financial data must be encrypted both in transit and at rest using industry-standard cryptographic protocols.
Servers hosting gambling operations and player data must be physically located within Hungary, as mandated by law.
Operators are required to implement strict access controls and regular security audits to safeguard sensitive information.
Data retention and deletion policies must be clearly defined and regularly reviewed for compliance with privacy laws.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must establish comprehensive AML programs, including automated transaction monitoring systems to detect suspicious activities.
Mandatory KYC procedures require verification of player identity, age, and source of funds before allowing participation in gambling activities.
Enhanced due diligence is required for high-risk players and transactions, with ongoing monitoring for unusual patterns.
Operators must report suspicious transactions and activities to the relevant Hungarian authorities without delay.
All AML and KYC procedures must be documented and subject to regular internal and external audits.
Financial Reporting, Auditing Standards, and Record-Keeping
Operators are required to maintain accurate and comprehensive records of all gaming transactions, player accounts, and financial flows.
Financial records must be retained for a minimum period as specified by Hungarian regulations and be readily accessible for inspection by authorities.
Regular submission of detailed financial and operational reports to the Supervisory Authority of Regulated Activities is mandatory.
Operators must undergo independent external audits of their financial statements and gaming systems at intervals set by the regulator.
Systems must be capable of generating real-time reports and supporting forensic investigations if required.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate responsible gambling tools directly into their platforms, including self-exclusion options, deposit and loss limits, and reality checks.
Automated systems must be in place to enforce player-imposed limits and self-exclusion requests without delay.
Age verification technology is required to prevent underage gambling, with stricter procedures and enhanced checks being introduced.
Operators must provide clear access to problem gambling support resources and implement proactive monitoring to identify signs of problematic behavior.
All responsible gambling features must be auditable, with logs maintained to demonstrate compliance to regulators.
Sources
Primary Regulatory Authorities
Supervisory Authority for Regulated Activities (SZTFH) - Official regulatory body for gambling and other regulated sectors in Hungary.
Address: Alkotás utca 50, Budapest 1123, Hungary
Phone: +36 1 550 1850
Email: info@sztfh.hu
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
