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Gambling regulation in Hungary is set for a dramatic transformation following the opposition’s landslide election victory in April 2026, with the new government expected to dismantle the restrictive monopoly system and introduce a competitive, EU-compliant licensing framework that could reshape both land-based and online gaming sectors.
This article drafted on the basis of the article from my DLA Piper Hungarian colleague Viktor Radics available here examines the political context, the legacy of Hungary’s gambling monopoly, recent EU litigation, and the potential directions for reform.
The Political Earthquake of April 2026
With the opposition Tisza party securing a resounding victory in the general elections on 12 April 2026, Hungary is poised for the most significant political shift since Viktor Orbán’s Fidesz party returned to power in 2010. Tisza, led by Péter Magyar, secured 53.1 percent of the vote and won a constitutional supermajority of 141 seats in the 199-seat National Assembly, while Fidesz was reduced to just 52 seats. Magyar’s candidates won 96 of the 106 individual constituencies, reflecting the extraordinary breadth of anti-government sentiment. Voter turnout approached 79 percent — one of the highest participation rates in modern Hungarian history — underscoring the public’s demand for change.
Framing the result as a “change of regime,” Magyar and his supporters view the election as a decisive rejection of the political system built by Orbán and Fidesz over the past sixteen years. The new parliament convened on 9 May, with Magyar formally sworn in as Prime Minister. This supermajority places the incoming government well above the two-thirds threshold required to pass constitutional reforms, granting it sweeping legislative power to dismantle and rebuild the institutional structures of the Orbán era.
Gambling regulation in Hungary was a prominent topic during the early weeks of the campaign by the opposition, particularly since land-based casino concessions and online gaming — including sports betting — have historically been controlled by the state and, more notably, by individuals close to government forces. Given this background, it is highly likely that the new government will prioritize reforming Hungary’s gambling regulations. We can expect a comprehensive overhaul affecting both land-based and online sectors. That said, the big questions remain: What form will these changes take, and how will the government implement them effectively while respecting the principles of legality and the rule of law?
The Legacy of Hungary’s Gambling Monopoly
To appreciate the significance of potential reforms, one must understand the restrictive system that has governed Hungarian gambling for decades. Hungary’s relationship with gambling traces back to 1777, when the first state-run lottery was introduced by Empress Maria Theresa. After the nationalisation of the industry under communist rule in 1949, gambling was reintroduced through the first Gambling Act in 1991, which regulated state-controlled activities including lotteries and sports betting. In 1992, the state-owned Szerencsejáték Zrt. was established, consolidating lotteries and sports betting under government control.
Online gambling was legalised in 2013, but the framework was designed to shut out most foreign operators through heavy regulations. Under Hungary’s Gambling Act (Act XXXIV of 1991), online casino licences historically required companies to operate a land-based casino inside Hungary — a requirement that effectively excluded most international online-only operators. The result was a narrow market where consumer choice remained limited and competition subdued. For decades, Hungarian authorities restricted online casinos to operators with land-based concessions, meaning only a few venues — often linked to state interests — had the right to launch digital platforms.
In the field of land-based casino games, a concession system limits the number of land-based casinos to 12, and online casino games can only be provided by the concession holders of these land-based casinos. As of late 2025, 11 of the 12 available land-based casino licences had been granted, leaving virtually no room for new online casino operators to enter the market through the required concession model. Authorities also used strict enforcement tools such as blocking access to unlicensed gambling websites, restricting advertising for offshore operators, and ordering internet service providers to prevent access to unlicensed platforms.
The 2023 Sports Betting Liberalisation — An Incomplete Reform
A partial reform took effect on 1 January 2023, when amendments to the Gambling Act ended the state monopoly on online sports betting, opening it to private operators from the European Economic Area (EEA). This step was taken after the CJEU concluded in its landmark 2018 Sporting Odds ruling (C-3/17) that key elements of the Hungarian system were contrary to EU law.
However, the reform was widely regarded as incomplete. Despite the theoretical opening, no foreign operator had obtained a licence since the re-regulation, and only one Hungarian company had been granted a licence. The licensing conditions remained extremely onerous: applicants must demonstrate at least five years of licensed online gaming experience within the EEA, maintain share capital of at least HUF 1 billion (approximately EUR 2.5 million), and pay a licensing fee of HUF 600 million (approximately EUR 1.5 million). A “bad actor” clause further excluded companies that had previously provided unlicensed gambling services in any EEA state within the preceding five years.
Crucially, the online casino games regime — the EU law non-compliance of which was clearly established by the Sporting Odds judgment — was not subject to any substantial change. Market players and professionals have long expressed serious concerns about the compliance of even the new online sports betting regime with EU and national laws, since a number of fundamental provisions (particularly licensing requirements discriminating against international operators) may infringe EU fundamental freedoms.
The EU Law Backdrop: A Decade of Litigation
A useful lever for reform could be the outcomes of successful litigations brought by international operators over the past thirteen years, challenging the current system’s compliance with EU law. Hungary has been at the forefront of gambling regulation in Hungary-related disputes in the EU over this period.
The key CJEU jurisprudence includes:
- The Unibet case (C-49/16, 2017): The CJEU ruled that Hungary violated the fundamental freedom to provide services guaranteed under Article 56 TFEU by failing to organise a licensing tender published according to objective, transparent, non-discriminatory, and proportionate criteria. The Court stressed that enforcement actions against EU-licensed operators unlawfully excluded from national licensing processes are prohibited and not in compliance with EU law.
- The Sporting Odds case (C-3/17, 2018): The CJEU found that the requirement for online operators to also hold land-based casino concessions amounted to a disproportionate barrier to the free movement of services. The ruling also prohibited enforcement by Hungarian authorities against operators that had been excluded from the licensing process.
- The Berlington Hungary case (C-98/14, 2015): The Court held that while Member States retain discretion to regulate gambling, a policy of controlled expansion can only be justified if criminal and fraudulent activities linked to gambling, as well as addiction, could have been problems that the expansion of authorised activities could have solved.
As recently as 2026, Hungarian courts have found the casino concession system — including provisions for online gaming — in breach of multiple fundamental EU laws and principles. There are also allegations of illegal state aid within the sector, which could pose risks for current operators as the new government reviews existing practices.
Early Actions: Audit of Szerencsejáték Zrt.
The new government has already begun taking concrete steps. In May 2026, the incoming administration ordered a comprehensive audit of Szerencsejáték Zrt., citing concerns about governance and representing the first serious scrutiny of Hungary’s state gambling empire in more than a decade. This development signals that one of the country’s most politically connected enterprises is now subject to genuine oversight. Following the major government transition led by Péter Magyar, the state-owned operator faces its first serious accountability review, which could reveal financial irregularities, mismanagement, or potential state aid concerns that would further justify regulatory overhaul.
What Could the New Regulatory Framework Look Like?
At this stage, information about the potential new regulatory framework is not yet publicly available and probably the legislation is not even completed. However, based on the incoming government’s stated commitment to aligning with European standards, it is likely that future policies will reflect broader European trends. Several directions appear probable:
- A fully competitive licensing system. A new government might move toward a multi-licence model similar to those used in Sweden, Denmark, or the Netherlands, where multiple domestic and international operators can enter the market provided they meet regulatory standards for consumer protection and responsible gambling. Such systems typically separate online casino licensing from land-based concessions, eliminating the requirement that has been the most significant barrier to foreign entry.
- Removal of discriminatory barriers. The strict licensing conditions and ties to land-based casinos that have limited competition would likely be reformed or abolished. This would bring more casino platforms and betting options, increased competition, and larger marketing and sponsorship investments in Hungarian sports.
- Alignment with EU single-market principles. Hungary has already faced sustained legal pressure from EU institutions over its restrictive gambling policies. Closer alignment would reduce regulatory conflicts, encourage international operators to enter the Hungarian market, and remove the risk of further infringement proceedings or financial penalties from the European Commission.
- Tax reform. Governments that open gambling markets often adjust tax rates to attract operators while still generating public revenue. Analysts predict that opening the market to more licensed operators could actually increase long-term revenue through a rise in corporate tax contributions and licensing fees, while redirecting players from offshore platforms back into a regulated, taxable environment.
- Enhanced responsible gambling standards. International operators increasingly provide deposit limits, time reminders, and self-exclusion systems. Any new framework would likely require stronger responsible gambling features as a condition of licensing.
The Broader Political Context: EU Funds and Democratic Reforms
The gambling reform agenda is intertwined with Hungary’s broader democratic transition. Magyar’s supermajority facilitates the swift approval of democratic reforms necessary to unlock approximately €17 billion of EU funds that were frozen over rule-of-law shortcomings under Orbán’s tenure. Under the current rules, Hungary must fulfil 27 EU-mandated conditions — officially known as “super milestones” — reforming procurement rules, increasing judicial independence, and enhancing academic freedom as preconditions to claiming funding.
Shortly after the election, Magyar and his future ministers held talks in Budapest with European Commission President Ursula von der Leyen’s chief of staff, outlining a roadmap to release the frozen money. This diplomatic momentum and commitment to EU alignment suggests that all regulatory sectors — including gambling — will undergo scrutiny to ensure conformity with EU standards.
The experience of Poland following its 2023 parliamentary election offers a relevant comparison: even with less extensive state capture, the new Polish government encountered significant obstacles in reversing illiberal measures. Hungary’s deeper level of institutional capture suggests that challenges would be more pronounced, but the constitutional supermajority provides Tisza with tools that the Polish government lacked.
Challenges and Uncertainties
Despite the strong political mandate, several factors could slow or limit liberalisation. Institutional inertia means gambling regulation in Hungary tends to evolve slowly regardless of political leadership. Public policy concerns about addiction, fraud, and social harm remain legitimate considerations. Companies currently benefiting from the existing system may resist reforms that increase competition, and any changes would likely occur gradually rather than immediately.
The question of how to treat existing concession holders — particularly regarding state aid concerns and potential clawback of benefits — raises complex legal issues. Due process and rule-of-law principles will need to be carefully observed, even as the government seeks to correct what it views as the regulatory failures of the past sixteen years.
If the incoming government’s vision materializes, the Hungarian gambling market could become open not only for new domestic but also for international operators — some of whom have been fighting for that right before national and EU courts for a decade. A strictly regulated but open and competitive market can benefit the state through increased tax revenues, competitive operators through fair market access, and most importantly Hungarian players through better services, broader choice, and enhanced consumer protection.
2026 will be remembered as a defining moment in Hungary’s gambling history — one that sets the tone for the country’s role in the European digital gaming sector for years to come.
You can read about the different gambling regimes in almost 50 jurisdictions in the Gambling Laws of the World Guide. Also, you may find the following article interesting “Australia Gambling Advertising Reforms: What Is Changing for Operators?“.