Hungary’s gambling industry is a rich combination of historical precedents and contemporary legislation. When you start exploring the online casinos in this Central European country, you will find out that there are certain unique laws regulating the business. From state controlled lotteries to strictly regulated internet sites, Hungary’s attitude to gambling is a reflection of its traditions and economic development. Now let us see how these unique laws affect both operators and players in the Hungarian market.
Historical Context of Gambling in Hungary
The history of gambling in Hungary goes back many centuries. The first legalized gambling was the state lottery which was started in 1777 by Empress Maria Theresa. The first land based casino was established in Pest in Hungary in the year 1827 and it was known as National Casino.
As experienced gambler and iGaming writer Dávid Fenyves from CasinoRIX notes, “A magyar szerencsejáték-piac az elmúlt évtizedekben jelentős változásokon ment keresztül. A https://casinorix.com/hu/ oldalon minden fontos információt megtalálhatsz, így könnyebben eligazodhatsz a jelenlegi szabályozások labirintusában.”
The gambling industry was not immune to the changes that occurred during communism, most of the activities were nationalized in 1949. But the fall of communism in 1991 brought a new era of gambling in Hungary. The first Gambling Act was passed to try and control the newly opened up market.
One of the significant events occurred in 2011 with the adoption of the new gambling law. This legislation paved the way for online gambling which was later introduced officially in the year 2013. The law also increased the rules and requirements for operators to a higher level.
Current Legal Framework
Currently, Hungary has one of the toughest gambling policies in Europe. The current laws governing the sector are anchored on the Gambling Act of 2013, which has been revised several times to meet the EU standards.
For online casino operators, it is difficult to get a license in Hungary. The industry is highly regulated by the government; it has high financial thresholds and operational standards. Since 2023, online sports betting has been allowed for private operators in the EEA, whereas online casinos are still highly regulated.
The license requirements for online casino platforms are quite strict. Operators are required to show that they have at least five years of experience in offering licensed online gaming services in the EEA. They also have to keep a minimum registered capital of HUF 1 billion (about €2.5 million) and pay a significant licensing amount.
In Hungarian law, the difference between domestic and foreign operators is well defined. Although there is a liberalization of the market, there are many barriers to entry for foreign operators. Domestic operators have an added advantage especially those with land based operations already in place.
Online Gambling Regulations
There are certain regulations that apply to online casinos in Hungary to make sure that every player is treated fairly and that the consumer is safeguarded. Operators need to ensure that they have proper age verification mechanisms in place and should provide the players with an option to self-exclude themselves. They are also obliged to provide the information about the risks of gambling addiction.
The legislation of gambling in Hungary pays much attention to the protection of players. Licensed operators are required to provide the measures of responsible gambling such as deposit limits, reality checks, and links to the support services for gambling problems. Such measures are intended to reduce risks associated with online gambling and promote a safer form of gambling.
Another important factor of Hungary’s gambling legislation is the taxation of the operators. The online sports betting and casino operators are required to pay a tax of 15% on their net gambling revenue. This tax structure has consequences for players as it may influence the odds and payouts that the operators offer.
Conclusion
The legislation of gambling in Hungary is quite peculiar, which makes it possible to find both opportunities and challenges in the world of online casinos. With the development of the industry, Hungary’s approach in the regulation of gambling legislation will definitely affect the further development of iGaming in the country and can act as an example for other European countries.