The Technology and Challenges of Betting in Hungary | Jimmy Daytona Overview
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Hungary is a central European country that relates more to Eastern Europe due to its heritage as part of the USSR. Our focus of this article is the online sports betting scene in the country, which Szerencsejatek, a state-owned company, primarily controls.
Today, we have a gambling expert to explain how technology has changed how Hungarian bettors interact with the industry. It’s Jimmy Daytona from BetZillion. He also brings a list of Hungarian betting apps for our readers.
Technological Advancements in the Online Sports Betting Markets in Hungary | Jimmy Daytona Expert View
Did you know that science and technology is one of the most evolved industries in Hungary? Everything in the internet and other sectors usually reaches the country pretty quickly.
On top of that, according to the Digital Economy and Society Index (DESI), Hungary ranks in the 12th position in terms of broadband connectivity in all of Europe. So, it’s safe to assume that technology has never been an issue for Hungarians as a barrier to participating in online betting.
Rather, it’s the lack of private companies offering the services. Both land-based and online sports betting have long been a monopoly by Szerencsejatek. The only sector where private companies could get a slice is online and offline casinos.
Thankfully, it’s all about to change, hopefully very soon. According to recent TRIS notifications addressed to the European Commission, the online sports betting market may soon be open to private investors.
Mobile Betting in Hungary
At the time of writing, Hungary has about a 10 million population. Interestingly, the country’s population is less than the number of tourists that visit it annually. But that’s beside the point. According to Statista, there were 7.17 million smartphone users in Hungary. The number is projected to increase to 7.59 by 2025.
It’s safe to assume that the majority of adults own a smartphone. Android remains the market leader, with over 82% of users preferring this open-source OS by Google. The rest use iOS.
It makes mobile betting in Hungary more accessible for users. Not every bookmaker may offer iOS apps, but they offer Android apps. It’s simply because it’s possible to download APK files from outside Google Play Store. You should be able to download the app directly from the sportsbook website.
On the other hand, if Apple doesn’t allow the app to be listed in the Apple Store, you have no other way but to use the mobile website to gamble.
Then again, it doesn’t matter because modern online gambling feels the same across all devices. Sure, the graphical elements’ layout and placement might differ from device to device, but they perform the same function.
Online Payment Methods Available in Hungary
We’ve already established the fact that Hungary doesn’t have any handicaps in terms of technological advancement. Data suggests that Mastercard is the market leader when it comes to credit and debit cards, closely followed by Visa. So, all international payment providers are available in the country.
As online sports betting is legal and currently offered by a government-approved company, you can use credit cards for gambling directly.
Then other reputable methods like PayPal, Skrill, Neteller, etc., are also available for you to use. But Jimmy was not done with blowing your minds.
You can use cryptocurrencies to gamble in the country! In case you’re unaware, MiCA stands for Markets in Crypto Assets Bill. It shares clear guidelines for cryptocurrencies in EU countries, including Hungary. It should become even more common since MiCA is passed.
Data Analytics and the Rise of Sports Betting
Data analytics may not cross your mind very often, but it’s the foundation of sports betting. How, you ask?
You must be familiar with betting odds. The magical number shows you the likelihood of the event and how much you can win in case of success. How do you think providers like Szerencsejatek come up with the odds?
Yes, the answer is data analytics. Hungary has some of the best universities in the world that offer Data Science as a line of education. We won’t be surprised if it turns out that the analysts are from these universities.
In the future, when private companies start operating in Hungary, we can expect another boom in data analytics due to the increased demand. After all, all bookmakers want to project the most accurate odds.
Challenges of Online Gambling in the Country
The primary challenge of online gambling in the country is the regulatory environment. Currently, only casinos and online casinos are allowed to be run by private companies.
Then again, Hungary has one of the highest licensing fees. To be precise, it’s 116 million Hungarian Forints every year. It makes it very hard for operators to renew their licenses every year. Thankfully, they can do it from tax deductions.
Another major challenge is the number of casinos that are allowed to operate. The number of online and offline casinos is capped at 11.
So, when online sports betting becomes more accessible to private companies, there is a high chance that the number of operators will be limited. It will bottleneck the bettor’s experience severely.
Then there is taxing. It’s pretty high. As long as the operator brings in revenue under 10 billion Hungarian Forints, the tax is set at 30% for the operators. Whatever they bring in over 10 billion, there is an additional 10% tax.
The improvement in technology and the higher penetration of the internet should help alleviate some of these challenges.
Wrapping Up
If you’ve read through this Daily Hungary News piece aided by Jimmy Daytona, you should have a clear idea of the overall landscape. We can’t say it’s very punter-friendly right now. But as technology evolves and the existing laws become more neutral, we can hope for a raging future for online sports betting in the country.