Hungary set to end state-run online sports betting monopoly

Hungary is set to end its state monopoly on sports betting by opening the door for online operators to offer their services in the country.

Online sports betting is currently restricted to the state-run Szerencsejáték Zrt. betting monopoly, but legislators are set to introduce significant changes to the market.

Under the proposed bill, operators based in the European Economic Area (EEA) will be afforded the opportunity to apply for a Hungarian licence, which will be subject to a range of requirements.

Operators must hold a minimum share capital of €2.8m (£2.4m) and at least five years’ experience in providing online sports betting or online casino operations.

The licence fee is planned to cost €1.7m with each licence planned to last for a maximum of seven years before renewal is required.

Operators must also provide a €700,000 minimum guarantee while the tax rate has not yet been proposed.

The legislation does not include restrictions on the number of licences that could be awarded, although operators who have been found guilty of offering gambling in an EEA state without the correct licence within the last 10 years will be excluded.

The draft also includes the development of a player protection action plan and requires regulation on payment providers.

Additionally, this bill contains no amendments to the 2014 online casino games regulations, under which only land-based casino licence holders were entitled to provide online casino games.

The bill is planned to enter into force on 1 January 2023.