Online Gambling Laws in Hungary

The land-locked European country of Hungary now has a relatively open gambling market, but that certainly hasn't always been the case. Learn all about Hungary's gambling laws in our article below.

Gambling Regulation by Casino Type

Most forms of gambling were made legal in Hungary with the introduction of the Law on Organising Gambling Activities in 1991. Online gambling took longer to become available in the country, with the law permitting the activity in 2013 and the first online casino opening in 2017. Let's look at the gambling legalities in Hungary by each type of activity.

Casino Games

Land-based casino gaming is legal in Hungary and has been since 1991. There are currently 11 casinos across the country (the maximum number permitted), with five located in Budapest's capital. Casino venues in Hungary host standard games such as Blackjack, Roulette, Poker and slot machines, though importantly not sports betting or lottery games. Slots halls were also present in the country, but these were banned in 2012.

Online casino gambling is also legal in Hungary and has been since 2013, with operators required to hold a licence. Only those who already run a licensed land-based casino in the country can apply for a licence for an online casino in Hungary. However, partnerships between venue operators and foreign sites are possible. 

As a result of the limited number of land-based casinos and existing licensing rules, there are very few online casinos in Hungary. Those residing in the country prefer to play a wider range of online casino slots and table games at foreign online casinos. Still, Hungary's internet service providers block many of these sites.

Poker

Land-based poker is legal in Hungary, with the game found in 2 forms. At casinos, the banked version of the game (e.g. casino poker) is typically the only form found, but these venues may also include video poker machines. There are also four poker clubs within the country, which host the player v player games that the casinos do not. In both cases, establishments are required to hold an operating licence.

Online poker gaming is also legal in Hungary, with operators required to hold a casino licence. Again, due to the limited number of casinos in the country, online poker sites are very rare. Residents can play online poker via foreign sites if the country's ISPs haven't blocked them.

Bingo

Bingo is a bit of a lost game in Hungary, as there isn't much activity there. Bingo is legal according to gambling laws in Hungary, but only one company can offer it: Szerencsejáték Zrt. While a bingo hall called Bingó Sugár opened in 2009, it eventually closed its doors, leaving no bingo venues. The only offline games are those run in local hotels or nursing homes, which tend to be overlooked by the law.

Szerencsejáték Zrt. doesn't offer any online bingo gambling facilities, and due to the monopoly, no other operator is permitted to either. Those keen on playing bingo games online can do so only at foreign bingo sites that haven't already been blocked.

Lotteries

Both offline and online lottery gaming are legal in Hungary, but Szerencsejáték Zrt. Holds a monopoly on the activities, with no other companies permitted to offer such games. Residents of Hungary can buy lottery tickets and play scratchcards and keno games at their local retailer. Online lottery games can also be played, and tickets can be bought via the company's website. Hungarians can access online lottery games for real money via foreign lottery sites, with EU fair competition laws making it difficult for the country to prosecute such players.

Social Casinos and Crypto Casinos

Free online casinos, also known as social casinos, are not specifically mentioned in Hungary's gambling laws, which means these activities are currently unregulated. The situation is the same for lootboxes and the increasing trend of skins gambling.

Regarding crypto casinos, the law leaves cryptocurrencies in limbo as they are not illegal but not deemed legal tender either. That means land-based casinos cannot accept cryptocurrencies. However, online casinos can resolve this issue through third-party payment processors enabling crypto transactions.

Hungary Sports Betting Laws

Sports betting is legal in Hungary, but only via Tippmix, a brand run by Szerencsejáték Zrt. There are many sports betting shops throughout the country where people place football bets. There is also betting on horse racing, but this is to a much lesser extent and is offered separately by Kincsem, a brand run by Magyar Lóversenyfogadást-szervező Kft.

Online sports betting is also legal, but again, it's exclusively the domain of Szerencsejáték Zrt. Via Tippmix, with foreign online sportsbooks blocked by the country's ISPs. Punters can still access online sports betting sites outside of Hungary and are not prosecuted for betting at such sites. Hungary's gambling laws don't specifically mention Esports and fantasy sports betting betting. Still, they are generally classed as coming under the monopoly control of Szerencsejáték Zrt., just like other forms of sports betting.

Gambling Age Restriction

Only those aged 18 or over can enter and play at a casino or poker hall in Hungary or online gambling sites.

Tax Regulation

Hungary gambling tax regulation stipulates that land-based and online casinos pay an amount based on their annual turnover: 30% for turnover less than 10 billion HUF (about €27 million) and an extra 10% for anything exceeding 10 billion HUF. Companies are permitted to deduct the cost of the licence fee, which is 116 million HUF (around €300,000).

The country's lottery operator is taxed based on each game's monthly prize pool, with the tax rate ranging from 17% to 24%. Sports betting tax is paid at 20% of net winnings, online sports betting tax is 15%, and a 7% tax on bingo monthly prize pools. For players, winnings from licensed casinos are tax-free, but those derived from unlicensed sites are taxable.

History of Gambling Laws in Hungary

The first land-based casino in Hungary, the Nemzeti Casino, opened in 1827, almost 200 years after opening the world's first casino in Italy. The casino operated for many years before closing in 1944.

Shortly after that, in 1949, Hungary was taken over by the then-Soviet Union, which resulted in just about all forms of gambling being made illegal. The country regained its independence in 1989, and by 1991, the Law on Organising Gambling Activities made most forms of gambling legal. In 2012, smaller venues were banned from hosting slot machines, with only licensed casinos permitted to offer such gaming by law.

Online gambling was made legal in Hungary in 2013. Still, it wasn't until 2017 that the first licensed online casino in the country, Vegas. 

Key Facts

Here are the basic facts about Hungary's gambling laws:

• Casino gaming is legal: Operators must hold a licence, with online casinos (including live casino sites) required to be owned by or in partnership with existing land-based casinos.
• Poker gaming is legal: Under licence, casinos offer banked games, and poker halls offer player v player games.
• Bingo and lottery games are legal: These come under the monopoly control of Szerencsejáték Zrt.
• Sports betting is legal: Both offline and online sports betting is monopoly controlled by Szerencsejáték Zrt. under the Tippmix brand, while horse racing betting is the monopoly of Kincsem by Magyar Lóversenyfogadást-szervező Kft.