Hungary’s iGaming market is undergoing a controlled but meaningful transformation—one being closely watched by European and international operators seeking new opportunities in Central Europe.
👑 Once dominated by the state‐owned operator Szerencsejáték Zrt., the state has ceded to the demands of the EU. New legislation commenced in 2023 to liberalise sectors such as sports betting and open them up to private operators for the purpose of introducing greater clarity and competition.
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A brief history of regulation in Hungary
For decades, the Hungarian government controlled the betting industry, holding 100% ownership and denying outsiders any slice.
Complaints to the European Commission slowly opened the door to legislative change.
From monopoly to regulated market
Act XXXIV of 1991, or the Hungarian Gambling Act, outlined the guidelines for the iGaming sector. During its initial passage, it gave extensive powers to state-owned Szerencsejáték Zrt., which was given powers over all the betting shops, lotteries and casinos in the country.
By 2014, the industry was dominated by Szerencsejáték Zrt. to the tune of 100% market share.
This monopoly was viewed by the EU as unduly restrictive and incompatible with the principle of free trade for the nation.
Large European gaming companies Sportingbet.com and Unibet went to the European Commission to liberalise the market.
Eu pressure and market liberalisation
Hungary began to implement legislative amendments around the gambling industry. Reforms commenced in the mid-2010s but did not meet any of the concerns until early 2023.
At this point a new law came into play that deregulated the sports betting market for licensed private operators.
The current legal framework & licensing
The 2023 amendments to the Act established a new regulatory body. But the licences are cumbersome, and the access is constrained mainly because of the cost of the application and maintenance.
Regulatory authority and oversight
- The Supervisory Authority for Regulated Activities (SZTFH) is the current top-level regulator for:
- Issuing licenses
- Supervision of adherence to the regulations
- Suspension of unlicensed activities.
🏛️ It has implemented clearer, computerised license workflows in its oversight role. It has also increased technical requirements in concert with the expectations from the EU.
Entry barriers and compliance costs
Despite reforms, licensing remains highly demanding. Operators face stringent capital requirements, technical auditing requirements, and mandates for local presence. All applicants must remember to have:
- Have at least 5 years of experience in the interactive gaming industry under active license.
- Have no violations of the law in any gambling market in the 10 years before filing.
- Have a locally-registered office in Hungary, at least HUF 1 billion in share capital, and the company’s server in the country.
Market performance & trends
Hungary is an appealing gambling market with record revenues on the cards in the years ahead and a firm grasp of what its players want.
Market size, growth & channelisation
Hungary’s GGR (gross gaming revenue) reached €450 million in 2024 and is expected to hit €600 million by the end of 2025.
The challenge the government faces is that around 30–40 % of total online activity is thought to take place on unlicensed or offshore platforms. The SZTFH is actively blocking many of these sites, and as a result, the legal portion of the market is showing upward momentum.
Player behaviour & technology adoption
Mobile‐first gaming is the dominant consumer behaviour in Hungary.
Younger players gravitate toward hybrid betting formats and real-time wagering features, suggesting that online casinos should be the focus of new operators, provided they can meet the land-based casino criteria.
The best online casinos in Hungary will then dominate the industry.
There is also growing interest in cryptocurrency or wallet payment options to facilitate faster deposits and withdrawals; however, there’s no regulatory acceptance currently in place.
Challenges facing the Hungarian iGaming market
High barriers to entry
The strict regulations around the physical presence in Hungary, the minimum requirement of HUF 1 billion in share capital and the high application and licensing fees already reduce the pool of potential applicants.
👉🏻 Additional requirement? An online casino has to be backed by a land-based casino in Hungary.
Compliance risk & enforcement
Illegal gambling sites are a concern for Hungarian authorities, and since the beginning of 2024, the SZTFH has actively blocked more than 2,000 unlicensed sites.
Any potential operators that have even been remotely connected to any of these sites won’t have their applications considered.
Operators must also respect rigorous standards for responsible gaming, AML and data protection, further adding to the challenges to be overcome before applying for a license.
Opportunities & market outlook
Central Europe is a growing hub of gambling, and Hungary is being viewed as a gateway. If the barriers to entry were lowered, the country could become a major player on the continent.
Sports betting as growth engine
Sports betting is now open to other domestic and international operators. The estimated revenue from sports betting in Hungary for 2025 is approximately €180 million.
Hungary’s entire gambling industry is expected to reach a projected market volume of $737.70 million and approximately 549,000 users by the end of 2029. These impressive figures are likely to attract other operators.
B2B technology & compliance solutions demand
The Hungarian government has a strict view on illegal gaming. Its regulatory complexity has driven a growing demand for KYC/AML solutions and heavy platform monitoring and compliance across all tech providers.
👉🏻 For online gaming sites to succeed in Hungary, they’ll need to be localised, available in Hungarian, and support local payment methods.
The primary betting demographic in Hungary is the 35–54 age group (67% of the population), who are heavy users of social media—particularly Facebook—so a level of integration is necessary.
Risks & strategic considerations
Legal and tax uncertainty
Significant changes were made to the legislation in 2023, but they’re ongoing. Operators applying for licenses need to keep abreast of all the changes, and new requirements may come into play during their application process.
Compliance and licensing costs are a consideration before applying. Hungary imposes a 15% gross gaming revenue (GGR) tax on online sports betting and related activities.
State influence and market concentration
Despite reforms, Szerencsejáték Zrt. retains control over lotteries and draw-based games. This monopoly means that licenses are only being made available for the sports betting and online casino verticals.
With all the regulations to meet, despite the many containers, proper competitive balance may take years to materialise.
Hungary at the cusp of change
The 2023 reform is a positive development that brings Hungary closer to EU standards, but it continues to maintain strict controls. Projected 2025 legislative developments include:
- Centralised licensure across all gambling forms
- Stricter advertising regulation with mandatory requirements for problem gambling disclosures
- Stronger player protection with responsible gaming limits and awareness measures against addiction
- Active tracking and blocking of blacklisted sites
🎯 With potential growth in the sportsbook sector and increased demand for compliance infrastructure, Hungary is at the centre of attention for Central European expansion in gambling.
