The stagnant iGaming market of Hungary

In an effort to modernize its gambling laws and comply with European Union principles, Hungary introduced legislative changes that technically ended the state monopoly on online sports betting and allowed foreign companies to apply for licences. Under the reforms, operators from within the European Economic Area (EEA) can seek permits from the Hungarian supervisory authority (SZTFH) to offer online sports betting and other gambling services in Hungary if they meet regulatory requirements.

The changes were meant to make the market more competitive and reduce dominance of the state-linked operator, Szerencsejáték Zrt, especially after past rulings by the Court of Justice of the European Union (CJEU) which found aspects of Hungary’s previous online gambling laws incompatible with EU free-movement rules.

Despite the apparent opening, no foreign operator has actually applied for a Hungarian licence since the regime changed and analysts say there are good reasons why.

Extremely strict licensing requirements

Hungary’s licensing conditions include several demanding criteria that most international operators find hard to satisfy, such as:

• Operating servers within Hungary and maintaining a physical presence in the country.
• High share capital requirements (e.g., at least HUF 1 billion, roughly €2.5 million) before even applying.
• Companies must have significant licensing history in the EEA, free of any illegal operations over the past 10 years — a condition that could technically rule out many established global brands.

Casino licensing still tied to land-based concessions

Although sports betting was liberalized, online casino games remain tightly linked to Hungary’s former state monopoly, meaning only a limited number of land-based operators can legally offer casino content online. Foreign operators that wish to expand beyond sports betting face a regulatory barrier: they must partner with or establish a licenced land-based entity in Hungary, an expensive and complex process for companies primarily focused on digital offerings.

High costs and compliance burdens

Even operators that could meet the conditions face significant upfront costs — from licensing fees to capital requirements and localized operational expenses. These cost barriers reduce the financial appeal of entering the market and make other EU jurisdictions with more accessible regimes (e.g., Sweden or Malta) comparatively more attractive.

As a result of these constraints, Hungary’s legal iGaming market remains limited in diversity and competitive pressure. Despite the formal opening in 2023, the regulator has not issued any new online sportsbook licences to foreign operators, and domestic operators still dominate the market.

Industry observers have noted that “the situation is the same as before,” with the practical result being that many international companies have simply not bothered to apply due to the high regulatory hurdles.

Meanwhile, enforcement efforts continue to target unlicenced offshore sites — the country has blocked hundreds of such domains — but this doesn’t necessarily make the legal market more attractive if entry conditions remain prohibitive.

Hungary has clearly opened the door on paper to international iGaming, but in practice, that door remains very narrow. Many experts believe that for the legal market to truly become competitive and vibrant, Hungary will need to simplify licensing, adjust capital requirements, and reduce operational barriers, making it more appealing for global operators to enter legitimately rather than prompting local players to seek offshore alternatives.

Until then, Hungary’s iGaming sector may continue to grow slowly, but it will remain less dynamic and competitive compared with other European markets that have adopted more accessible and flexible regulatory frameworks.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.rgf.org.mt/