Hungarian regulator issues fine for “disguised games of chance”
The regulator has fined the organiser of a lottery to win property.
Hungary.- The Supervisory Authority for Regulated Affairs (SZTFH) has fined the organiser of a lottery that offered chances to win property. It’s fined an unnamed private individual HUF 30m (around €79,000).
The regulator said that it considered lotteries that offer prizes such as property or cars to be illegal “disguised games of chance”. It noted that Hungarian law defines gambling as any game in which players can win a prize, that requires payment for entry and in which winning depends entirely or mainly on chance.
It warned that attempting to claim that tickets were given away with purchases of a physical item such as a book or T-shirt could not be defended as a loophole as it was clear that the main purchase was the lottery ticket.
It noted signs of this could be found in conditions such as if players receive their money back in the event of the draw not happening, the draw being cancelled unless a certain number of products are sold, or if the price of the product being sold is more expensive than usual. It said the use of a notary did not make the arrangement any more legal.
It warned: “The SZTFH strictly sanctions the organisation of such lotteries and may impose administrative fines ranging from HUF 500,000 to HUF 100m against the organiser. Such activity can also serve as the basis for criminal prosecution because anyone who regularly organises illegal gambling is punishable with up to three years in prison.
“In the case of an advertisement promoting unlicensed gambling, the advertiser, the advertising service provider, the publisher of the advertisement and the person featured in the advertisement may be jointly fined at least HUF 10m.”
It also reminded players that they participate in unlicensed gambling at their own risk since the regulator has no power to force operators to deliver prizes.
Hungarian gambling regulator implements technical rules for market opening
In March, the SZTFH issued a decree to implement technical requirements for the country’s newly liberalised gambling market. The decree brings in new legislation at the agency level and sets out requirements for operators that want to enter the market.
Operators seeking to gain authorisation from the SZTFH to run online gambling in Hungary must be able to demonstrate at least five years of experience in licensed online gaming in a European Economic Area state. The decree forbids the licensing of any operator that has offered unlicensed gaming in the five years prior to application.
Hungary’s state monopoly on gambling came to an end on January 1 under an amendment to the country’s Gambling Act passed in February 2022. The amendment introduces a competitive licence process, with the European Union Court of Justice having ruled that the monopoly system was incompatible with EU law back in 2017. Players are now permitted to have balances with multiple operators.
