Hungary’s online gambling market set for rapid growth, state of transition?
Hungary’s online gambling market is on track for remarkable expansion, with projected revenue expected to reach $563.20 million in 2024. According to recent forecasts, this market is anticipated to experience a compound annual growth rate (CAGR) of 5.55 percent from 2024 to 2029, leading to a projected market volume of $737.70 million by the end of this period.
According to Statista data, the online lottery segment alone will contribute a substantial $333.20 million in 2024. In addition to these financial projections, the number of users in Hungary‘s online gambling market is expected to grow significantly, reaching approximately 549,000 by 2029. ??
With user penetration predicted to be at 4.6 percent in 2024, these figures highlight a promising future for online gambling in Hungary, driven by technological advancements, regulatory reforms, and shifting customer preferences.
Technological advancements and changing preferences??
The rise in Hungary’s online gambling market can be largely attributed to rapid technological advancements and evolving consumer habits. Speaking with SiGMA News, Mariusz Gasiewski, Central and Eastern Europe (CEE) Mobile Gaming and Apps Lead at Google, emphasised the critical role of technology in this growth trajectory. ??
“The continuous evolution of technology plays a pivotal role,” Gasiewski noted. “Better and better technological solutions allow for easier creation of high-quality assets and content for users, such as building better apps and websites.”
As more Hungarians access smartphones and high-speed internet, online gambling is becoming increasingly accessible and convenient. This shift is particularly evident among younger, tech-savvy users who are attracted to the flexibility and anonymity that online platforms offer, enabling them to participate in gambling activities from the comfort of their homes.
Sports betting popularity and market trends??
Sports betting, especially football betting, continues to dominate Hungary’s online gambling market. The country’s deep-rooted passion for sports has fuelled a surge in demand for online sports betting options, prompting operators to provide a diverse array of betting markets and competitive odds.
“The gamification of the gambling experience is another trend we’re seeing,” Gasiewski said. “Building better content that engages users more deeply is essential for sustained growth.”
The introduction of live betting options, which allow users to place bets during ongoing sports events, has further enhanced the appeal of online sports betting. This real-time betting experience not only adds excitement but also offers players a more interactive way to engage with their favourite sports.
The popularity of sports betting has attracted the attention of international online gambling operators, many of whom have entered the Hungarian market. These operators have localised their offerings, providing websites in Hungarian and accepting popular local payment methods to build trust and attract more customers.
The market’s potential has not gone unnoticed, as global players recognise Hungary’s growing appetite for online gambling. This influx of international operators has been facilitated by Hungary’s regulatory framework, which, while maintaining stringent standards, provides a stable and secure environment for online gambling activities.
Regulatory landscape: Ensuring a secure market??
Hungary’s online gambling market is underpinned by a robust regulatory framework designed to ensure market integrity and consumer protection. The government has implemented strict licencing requirements, which help maintain a secure online gambling environment. ??
Gasiewski highlighted the importance of data security and regulatory compliance, noting, “Ensuring that personal data is protected and that operators comply with national and international regulations is crucial for maintaining player trust.” The regulations have been periodically updated to align with European Union (EU) directives, enabling private operators from the European Economic Area (EEA) to enter the market, provided they meet specific criteria.
Despite the liberalisation of sports betting, online casino gaming remains under stricter control, with licences granted only to those with a physical casino presence, reflecting Hungary’s cautious approach to regulating the gambling sector.??
Macroeconomic factors driving growth
Hungary’s stable economy has also played a significant role in the expansion of its online gambling market. With steady economic growth, rising employment rates, and increased disposable income, more individuals have the financial means to engage in online gambling activities.
Gasiewski pointed out the importance of economic stability in driving market growth: “People are more likely to engage in leisure activities like online gambling when they have disposable income and economic confidence.” As economic conditions continue to improve, the online gambling market is likely to benefit from an expanding user base willing to spend on recreational activities.
The future of Hungary’s online gambling market??
The outlook for Hungary’s online gambling market remains highly favourable, driven by technological advancements, favourable regulatory changes, and ongoing economic stability. However, challenges such as meeting stringent regulatory requirements and maintaining consumer trust will be crucial for sustained growth.
Gasiewski believes that personalisation will play a significant role in the future of online gambling. “The use of artificial intelligence (AI) and machine learning to offer personalised gaming experiences and targeted promotions is expected to grow,” he said. These technologies will allow operators to tailor their offerings to individual preferences, enhancing user engagement and retention, which is key to long-term market expansion.
As Hungary continues to align its gambling regulations with EU standards, opportunities for international operators are expected to increase. Nonetheless, potential entrants must navigate Hungary’s rigorous licencing process, which requires proof of a minimum of five years of operational experience in the EEA and adherence to stringent financial thresholds. These measures ensure that only reliable and experienced operators can enter the Hungarian market, preserving the integrity and stability of the online gambling industry.
Compliance with Hungary’s strict anti-money laundering (AML) policies and data protection regulations is also mandatory. Gasiewski emphasised the importance of these safeguards: “Operators must ensure that their platforms meet the highest standards of security and compliance to gain and retain consumer trust.”
A market with high potential??
Despite regulatory challenges, Hungary’s online gambling market presents substantial opportunities for growth. With a projected revenue of $563.20 million in 2024 and a CAGR of 5.55 percent over the next five years, Hungary is emerging as a key market for online gambling operators.
“The gambling market in Hungary is in a state of transition. The recent liberalisation of online sports betting signals a move towards a more open market, but some challenges remain for operators seeking to enter. With the recent changes, Hungary’s online gambling market is considered an emerging one. While challenging, it offers opportunities for operators willing to navigate the complex regulatory landscape,” Gasiewski said.
“The future of online gambling in Hungary will be shaped by technological advancements, economic stability, and the ability to navigate and comply with a complex regulatory environment,” he concluded.?
