Hungarian Gambling Industry Updates in 2023

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Last year, Hungary put an end to its monopolization of the gambling industry. The European Commission played an important role in lobbying Hungary to open up its market to EU-based gambling businesses.

Starting this year, gambling investors based in Europe have had the right to apply for licensing in Hungary. Below is an overview of the new iGaming landscape in the country.

What’s the Relevant Authority in Charge of Gambling Regulation?

The Supervisory Authority of Regulatory Affairs (SARA) will be in charge of regulating casino games and sports betting. This means it will license any website that aims to provide slots, bingo, poker, slots roulette, or blackjack.

It will also regular sports betting, fantasy betting, and lotteries. The only type of gaming SARA won’t oversee is social games. If you launch a free-to-play blackjack app, you don’t need to acquire a license from SARA.

Although Hungarian gambling laws have improved, they’re not very progressive. The country plans to license a maximum of 12 land-based casinos. And only these casinos will hold the rights to operate gambling websites. This will limit the number of betting companies licensed to operate in Hungary.

That being said, Hungary no longer prohibits foreign gambling sites from providing their games to Hungarians. In a way, Hungary can be compared to US states like Texas, New York, and Florida.

Online gambling in Texas, New York, and Florida is allowed if you use safe offshore casinos. Likewise, you can bet on sports or play slots online in Hungary if you use a reliable operator based outside the country.

Who Can Apply for Gambling Licenses in Hungary?

Under its new gambling laws, Hungary insists that only transparent businesses will be licensed in the country. The country describes transparent operators as those based in Hungary. They also need to have a clean bill of health.

Secondly, Hungary is willing to license betting companies based in the European Economic Area (EEA) if they’re publicly traded companies. Casinos operated by governments in the EU can also apply for licenses. Additionally, operators based in countries with bilateral economic agreements with Hungary are welcome.

As already mentioned, SARA began licensing gambling companies on 1^st January this year. Gambling licenses issued by SARA will have different expiry dates. However, the regulator will hold the sole power for suspending companies that violate its policies.

What are the Advertisement Rules for Gambling Companies?

Like many countries, Hungary is taking a proactive role in regulating how to betting companies advertise their brands. It requires that all casinos and sportsbooks seek authorization from SARA before publishing any adverts on local media networks.

Crucially, betting firms can’t target minors and young adults in their adverts. That means they can’t run ads on websites or print newspapers that target kids. They also can’t help unlicensed casinos push their brands in Hungary.

To be fair, Hungary’s advertisement rules are in line with those of other EU nations. Almost all countries prohibit iGaming businesses from targeting underage players in their ads.

In some countries, sportsbooks and casinos can’t run TV and radio adverts during the day. They have to wait until late at night. Also, they may be prohibited from using paid ads on social media and Google.

How Much Tax Will Gambling Companies Pay in Hungary?

One of the reasons Hungary ended its gambling monopoly is to increase its tax income. The country plans to tax betting products differently. Take a look:

• Casino games: 30%
• Online sports betting: 15%
• Horse race betting: tax-free
• Keno games: 24%
• Bingo: 7%
• Lotteries: 24%

For clarity, Hungary’s tax may increase depending on a company’s gross income. For example, casinos that make over 10 billion HUF per year will pay a flat tax of 3b HUF. On top of that, they will part with 10% of revenue above 10 billion.

What are SARA’s AML Requirements?

Hungary has a list of Anti-Money Laundering requirements need to follow if they want to keep their licenses. There’s the usual stuff—a website needs to ask for identification from every customer.

Most casinos and sportsbooks wait until you win money before they can ask for your identification. It’s usually a minor process completed by uploading your ID or passport. Some of them may also ask for a personal photo to help identify you.

For persons planning to spend over €1,500, you should expect more verification requirements. Operators may ask questions about your source of income, they may ask for proof of residence or even ask for your bank statements.

If you’re Hungarian and planning to bet online for the first time, don’t worry about the aforementioned rules. They’re standard measures enforced by almost every government with legal gambling rules.

What are Hungary’s Accepted Payment Methods?

Like many EU countries, Hungary is prioritizing banking providers based in Europe. However, it will also permit certain safe and reliable international payment companies like PayPal, Visa, MasterCard, and Google Pay.

Keep in mind each payment method has its strengths and weaknesses. Banks are safe and reliable. But they process transactions slowly. Also, their charges might be high when depositing small amounts of money.

Visa and MasterCard are ubiquitous in the iGaming world. Nearly every gambling site accepts both cards. They provide fast, safe deposits. On the downside, they take up to three days to process withdrawals.

Many gamblers like E-wallets because they offer a blend of everything you would want. They’re fast, safe, cheap, and reliable. The only time you may want to avoid e-wallets is after you win huge jackpots. In that case, select Bitcoin or bank payments.

Will Hungarian Gambling Sites Give Out Bonuses?

Yes, Hungary is allowing betting sites and casinos to promote their services using bonuses. The country does not prohibit any promotions. But casinos must be responsible with their promotions.

To expound more, gambling sites must reveal bonus terms. Also, they need to market bonuses to adult players and not children. When it comes to specific promotions, you can expect both welcome and loyalty bonuses from casinos. However, only claim promotions with fair bonus terms.