The current situation of the Hungarian online gambling is characterized by strict regulation, state monopolies, and steady liberalization. As you will see when exploring this complex landscape of digital betting and gaming, there is a highly regulated and gradually liberalizing market. Now let’s look at the specifics of the Hungarian online casino regulation and find out what makes this Central European country’s attitude to iGaming so special.
Legal Framework Governing Online Casinos
“A https://casinorix.com/hu/ oldal tapasztalatai szerint a magyar online kaszinók szabályozása egyedülálló kihívásokat és lehetőségeket teremt. Bár a piac szigorú ellenőrzés alatt áll, a fokozatos liberalizáció új távlatokat nyit meg a felelősségteljes játékosok és innovatív operátorok előtt. A jövő izgalmas fejleményeket tartogat a hazai szerencsejáték-szektorban,” states Fenyves Dávid, a CasinoRIX experienced gambler & writer.
The legal framework of Hungary’s online gambling is anchored on the Gambling Act of 1991, which has been reviewed severally to reflect current trends. The most important shifts occurred in 2013 when online gambling was made legal and in 2023 when sports betting was liberalized.
However, the peculiarity of Hungary’s approach is that the state still controls most of the forms of online gambling. The state-owned Szerencsejáték Zrt retains exclusive rights to conduct online lotteries and most of the casino games. This leads to the development of a market structure that is a blend of state control and a small amount of private competition.
It is also important to mention that the National Tax and Customs Administration (NAV) and the SARA (SZTFH) are the main authorities controlling licensing, conformity, and sanctions.
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Licensing Process for Online Casinos
The process of getting a license for the operation of an online casino in Hungary is a very stringent one, which is in tandem with the government’s conservative approach to market liberalization.
For a company to be granted a license, it must show that it has sufficient financial capacity, and the minimum paid up capital is one billion HUF (equivalent to 2.6 million Euros). Furthermore, operators must have at least five years of experience in the provision of licensed online gambling services in the European Economic Area.
One of the peculiarities of Hungary’s licensing is that to obtain an online casino license, the operator must have a land-based casino concession. This rather peculiar condition poses a major threat to purely online operators.
Licenses are usually issued for a term of between 5 and 7 years and can be renewed. The renewal process is also very stringent where the operators are expected to prove that they follow current laws and regulations as well as best practices in responsible gaming.
Consumer Protection Measures
As for the player protection, Hungary uses the necessary measures to prevent the development of gambling addiction. Customers must always have the ability to exclude themselves and also set their own individual betting limits.
The measures against underage gambling are most stringent in Hungary. The age verification measures are strict, and operators are obliged to follow them; the penalties for non-adherence are stiff. This commitment to safeguarding the minors makes Hungary different from some other European jurisdictions where enforcement could be less strict.
Taxation and Economic Impact
The taxation policies on online casinos in Hungary are another factor that defines the market specifics. Operators in the online sports betting sector are subjected to a tax of 15% on their GGR while those in the online casino games are subjected to a higher tax of 20%.
What sets Hungary apart from the other countries is the extra ‘public health product tax’ to be charged on the operators. This tax which depends on the type of game being offered is intended to finance programs on compulsive gambling and other health related causes.
High taxes and strict regulations are the main factors that make the operating conditions unfavorable for the operators. However, it also makes sure that only those who are willing to make good on their commitments and to contribute to the social welfare of the society get into the market.
Conclusion
To conclude, the specifics of the Hungarian legislation regarding online casinos can be characterized as the state’s desire to maintain control over the market while gradually liberalizing it.
When you will start to navigate through online gambling in Hungary you will find yourself in a system that has been created to safeguard players, ensure high standards of operation and work for the benefit of the society. Despite the existing issues, the Hungarian iGaming market has a lot of potential for further growth, which makes it possible to speak about the market’s development in the following years.
