Gambling Laws in Hungary

The landlocked European country of Hungary nowadays has a relatively open gambling market, but that certainly hasn't always been the case.

Hungary: Which Gambling Activities Are Legal?

Most types of gambling were made legal with the introduction of the Law on Organising Gambling Activities in 1991. Online gambling took longer to become available. The law permitting the activity came about in 2013 and the first online casino opened in 2017.

Wagering on Offline and Online Casino Games

Land-based casinos are legal and have been since 1991. There are currently 11 across the country (the maximum number permitted), with five located in Budapest. Venues host standard games such as blackjack, roulette, poker and slot machines.

Slot halls were also present at one point but were later banned in 2012.

Online casinos were made legal in 2013 and only those who already run a land-based venue in the country can apply for licensing though. However, partnerships between existing operators and foreign sites are possible. 

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

In-Person and Online Poker Gambling

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

Online poker is also legal in Hungary, with operators required to hold a licence. Again, due to the limited number of casinos in the country, sites are very rare.

Playing Bingo With Real Money

Bingo is legal according to the gambling laws, but only one company can offer it: Szerencsejáték Zrt. While a hall called Bingó Sugár opened in 2009, it subsequently closed its doors due to a lack of interest. Games are also run in local hotels or nursing homes and 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.

Lottery Tickets, Keno and Scratchcards

Both offline and online lottery gaming are legal but Szerencsejáték Zrt. has a monopoly, with no other companies permitted to offer such games. Residents can buy tickets and scratchcards as well as access keno games at local retailers. Residents can also play online lottery games for real money via the Szerencsejáték Zrt site or mobile app.

Social Gambling and Online Crypto Casinos

Loot boxes and skins gambling aren't mentioned in current legislation, leaving them unregulated. It's legal for at-home games of poker and bingo though, as long as no commercial profits are being made. In terms of social casinos which allow players access to free slots and win credits- these also aren't covered in existing laws.

Hungarian law leaves cryptocurrencies in limbo as they are not deemed as legal tender. That means land-based casinos cannot accept them as a form of payment. However, offshore online crypto casinos can resolve this issue through third-party payment processors enabling transactions. Playing at one of these would be deemed illegal though under current laws.

Is It Legal To Sports Bet in Hungary?

Yes, but only via Tippmix which is a brand run by Szerencsejáték Zrt. There are many bookmaker shops throughout the country where punters mostly place football bets. There is also betting on horse racing, but this is to a much lesser extent. The markets are 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. Foreign online sportsbooks are blocked by the country's ISPs.

Hungary's gambling laws don't specifically mention e-Sports and fantasy sports betting.

Hungarian Minimum Gambling Age

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

Hungary Gambling Tax Regulations: Do Players Pay?

Regulations stipulate that land-based and online casinos pay an amount based on annual turnover. 30% for 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 rate ranging from 17% to 24%. Sports betting tax is paid at 20% of net winnings, online sports betting is 15%, and a 7% tax applies to 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, the Nemzeti, opened in 1827 - almost 200 years after opening the world's first casino in Italy. The venue operated for many years before closing in 1944.

In 1949 Hungary was taken over by the then-Soviet Union, which resulted in 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 activites legal.

In 2012 smaller venues were banned from hosting slot machines, with only licensed casinos permitted to offer them.

Online casinos and sports betting were made legal in 2013. However, it wasn't until 2017 that the first licensed online gambling site was created in the country, 'Vegas'. 

Key Facts

• Casino gaming is legal and operators must hold a licence. Online casinos are required to be owned by or in partnership with existing land-based venues.

• Poker gaming is legal under licence and casinos can offer banked games, whilst halls offer player-player games.

• Bingo and lottery games are legal and come under the monopoly control of Szerencsejáték Zrt.

• Both offline and online sports betting are monopolies controlled by Szerencsejáték Zrt. under the Tippmix brand. While horse racing betting is the monopoly of Kincsem by Magyar Lóversenyfogadást-szervező Kft.