The long-standing state monopoly on online sports betting in Hungary ended on December 18, 2022, when the final changes to the Implementing Decree of the SZTFH (Supervisory Authority for Regulatory Affairs) were published. Basically, only one element was missing: the forms through which the European Economic Area (EEA) (“EEA Operators”) can submit their applications for online sports betting licenses.
Adopted on 22 July 2022, the new regulation introduced many changes to Act XXXIV of 1991 on gambling operations (the “Gaming Act”) and opens Hungary to a competitive market. However, the operation of online casino games remains the prerogative of holders of national land-based casino concessions.
What applies now (2026)
This article describes the 2022–2023 reform as it was published at the time. The current position, based on information from February 2026 and later market reports, is:
- Regulator: the SZTFH (Supervisory Authority for Regulatory Affairs), which took over gambling supervision on 1 October 2021, applying Act XXXIV of 1991 on gambling operations.
- Remote gambling, including online sports betting, is liberalized for EEA entities, which apply through a registered Hungarian representative. Statutory capital is HUF 1 billion, the license runs for up to seven years and the SZTFH decides within 120 days. The guarantee, license fee and experience conditions described below come from the 2022 implementing rules and law-firm reports and should be confirmed for each application.
- Online casino may still be offered only by a concession company holding a Hungarian land-based casino concession.
- Land-based betting, including sports betting, remains a state monopoly, except horse-race betting.
- Tax: 15% of net gaming revenue on remote gambling, payable monthly, plus 9% corporate income tax.
- Advertising is allowed only for licensed operators; appearing in ads for unlicensed gambling can draw fines of up to ten times the advantage gained, and at least HUF 10 million.
- Market reality: as of October 2026, no foreign operator is reported to hold a Hungarian remote betting license. The government elected in April 2026 curbed the SZTFH’s concession powers from 1 October 2026, but no liberalization bill has been published.
For the company-law side and the full current conditions, see our Hungary company formation guide.
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The end of a monopoly
Until the entry into force of the new legislation, Szerencsejáték Zrt had a de facto 100% betting monopoly and defined the market since 2014 but was subject to legal disputes. Operators licensed in other EU Member States but not in Hungary, notably Unibet International and Sporting Odds, challenged the Hungarian rules, and the Hungarian courts referred the questions to the Court of Justice of the European Union (CJEU) (Unibet International, C-49/16, 22 June 2017; Sporting Odds, C-3/17, 28 February 2018) to decide whether Hungarian law contravened Article 56 of the Treaty on the Functioning of the European Union (TFEU). This article aims to prevent Member States from disrupting the provision of cross-border trade and services.
The CJEU ruled that Hungary’s online gambling licensing regime unlawfully excluded EU/EEA licensed operators from the country’s licensing process and reiterated that Hungary must adopt market regulation that meets criteria for granting objective, transparent, non-discriminatory, and proportionate licenses. The Hungarian government submitted its proposal to the European Commission for new legislation in February 2022, and parliamentarians adopted the approved scheme at the end of the year.
EEA operators should prepare for oversized license applications
The Gambling Act, as amended, introduces a multiple licensing model. EEA operators will be able to offer online sports betting services to players in Hungary by obtaining a license from the SZTFH (Supervisory Authority for Regulatory Affairs).
The legislator did not establish the maximum number of licenses to be issued. The secondary legislation, containing the detailed requirements, was subsequently adopted by the supervisory authority, as described in the text published in the Hungarian Gazette. Thus, EEA operators must meet the following conditions to obtain a License:
- the applicant must have at least five years’ experience as a gaming operator in another EEA country.
- the applicant, another company represented by the general manager of the applicant, or another company owned by the direct or indirect owner of the applicant, could not have been involved in the organization of illegal gambling activities within five years prior to the application.
- the applicant will establish a branch in Hungary and provide it with a capital of at least HUF 1 billion (approximately EUR 2.5 million);
- the applicant must provide guarantees in the amount determined by the SZTFH, but with a minimum of HUF 250 million (approximately EUR 625,000);
- the applicant will pay a license fee of HUF 600 million (approximately EUR 1.5 million) in advance for the entire duration of the license; and
- the applicant will prepare and implement a player protection action plan approved by the SZTFH.
According to the Implementing Decree, the license issued will have a period of validity determined by the SZTFH, but not more than seven years. EEA operators are not allowed to operate more than one website under the same license.
Licensing Procedures
Before starting the procedure for applying for a license, EEA Operators must appoint and register a local representative (“Representative”) with the SZTFH. This representative must be a Hungarian citizen residing in Hungary, must have a master’s degree in law or economics and have no criminal record. The registration is submitted through the representative’s personal “Ügyfélkapu” (the official electronic portal of Hungarian citizens). The SZTFH must decide on the registration within 75 days.
After the representative is registered, applicants use the form called “Remote Gambling License Application”, to which several documents are attached (game plan, conditions of participation, budget, AML related documents, systems audit certificate informatics). Upon submission, applicants pay an administrative service fee of HUF 10 million (~ EUR 25,000). The SZTFH decides on the license application within 120 days.
Compared to the processing of the license, the law establishes an extremely short term of 15 days for the registration of licensed operators with the competent fiscal body. The corporate income tax rate is 9% in Hungary, while the gambling tax rate applicable to online sports betting is 15% (of net monthly gambling income).
Strong market control by payment service providers
The SZTFH, in cooperation with the tax authority and the telecommunications regulatory authority, has been fighting for years to keep the Hungarian market free of unlicensed online sports betting operators. They applied a lot of measures (blocking the website, imposing fines), but with limited success.
The amended Gambling Act, in line with anti-money laundering (AML) regulations, will focus market control on the monitoring of payment accounts and relevant transfers. EEA Operators can make a payment to players only from their payment accounts which must be held with a payment service provider authorized under the Hungarian Acts on payment service providers and financial undertakings (“Authorized Account Provider”) by transfer in the payment account held by the player with an authorized account provider.
How can Szilaghi Consulting help you start your online gambling business?
Choosing a gambling licensing jurisdiction is quite difficult, to begin with. Given the sheer number of factors that need to be considered by gambling operators, the choice can be overwhelming.
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