REGULATORY REFORM
sustained economic growth and a steady influx of European Union funds meant that the financial impact of lost tax revenue from illegal gambling was largely unfelt. The last time the Hungarian government showed any inclination to open the gambling market to foreign operators was in the late 2000s, during a starkly different and much less favorable economic climate. Admittedly, the focus then was not on liberalizing online gambling, but rather on major foreign investors developing large, Las Vegas-style casino resorts in Western Hungary 6 . These projects would have brought substantial direct capital investment and significant tax revenue. None of these projects ultimately came to fruition, for reasons including financing constraints and political controversy, and they have not been revisited since. Today, however, with the national budget once again showing signs of strain, the argument that gambling is not merely a necessary evil, but a highly lucrative source of state revenue, may finally return to the forefront. Over the last 20 years, there was no strong public demand for comprehensive reform that could have forced a political response. Hungary inherited a gambling market from the socialist era where gambling was not about 'going to the casino', which was long considered a bourgeois pastime. Instead, it was about mass-market games played for small stakes. The proceeds from these games were frequently channeled into state projects, such as sports or housing development funds. With this legacy, and without a broad social base that challenges the traditional 'tolerated but not prohibited' mindset, the push for sensible regulation was supported by only a narrow demographic group. The best example of this was in 2012, when the government banned the operation of slot machines almost overnight. By restricting them to a few casinos, they dismantled an entire industry 7 . Citing national security and player protection
concerns, the Christian-conservative government pushed this program through with almost no public opposition. Later, two unstated arguments helped counter any potential social demand for change. While never officially articulated by the government, they fit perfectly into its broader political narrative. First, there was the idea that Brussels (the EU) should not dictate how Hungary regulates its markets. Second, domestic Hungarian businesses should be favored over large foreign corporations whenever possible. Aided by the public's general indifference, the majority of people quietly accepted that gambling rights were granted exclusively to Hungarian and politically well-connected entrepreneurs. Consequently, this situation was not used as a basis of political attack for many years. The topic only gained real traction in the run-up to the 2026 elections. Even then, it did not emerge as a standalone issue, but rather as part of a broader review of various state concessions, such as motorways and tobacco. Last but not least, a major source of resistance to market reform came from efforts to protect the state-run gambling operator and its associated business circles. Beyond generating profits and tax revenue, the state monopoly has historically played a structural role in the broader ecosystem of the government of the day. The company’s corporate sponsorship subsidiary has drawn intense scrutiny from investigative journalists and transparency advocates 8 . Critics argue that successive administrations have used the state-controlled operator as an off-budget financial reserve, essentially a parallel funding mechanism for political priorities. From this perspective, state dividends are legally rerouted through 'corporate sponsorships' to support entrepreneurs, influencers, and cultural figures aligned with whichever party is in power. Conversely, the official corporate stance highlights the operator as a vital benefactor of Hungarian civil society, sports, and culture. The company maintains
6 https://bbj.hu/business/industry/deals/packer-deals-himself-in-at-hungary-s-eurovegas40544/ 7 https://2010-2014.kormany.hu/en/prime-minister-s-office/news/plans-to-ban-slot-machines-in-hungary 8 A comprehensive article on the subject in Hungarian: https://444.hu/2026/07/20/felbehagyott-puskas-sorozatot-utolag-lepapirozott-tamogata- sokat-es-egy-nap-alatt-kiszort-62-milliardot-talaltunk-a-szerencsejatektol-kikert-dokumentumok-kozott
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IMGL MAGAZINE | SEPTEMBER 2026
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