Online casinos in Hungary

The legal regulations of online casinos in Hungary

Legislation and licensing

In 2013–2014 Hungary has adopted a new Law on Gambling (Law). European online providers have become illegal. They initiated proceedings in the national court and the Court of Justice of the European Union (CJEU).

CJEU judges concluded that the new rules are not in line with EU law. Now the law is not applied in practice. Hungary's gambling market is open to cross-licensed virtual casinos.

The activities of online casinos in Hungary are theoretically subject to the Law on Gambling. It contains:

• definition of the concept of rates and machines;
• description of licensing and state control procedures;
• list of games;
• types of permissions for slot machines;
• advertising standards.

Decree No. 32/2005 (X. 21.) issued by the Minister of Finance is considered a technical regulation. The responsibility of operators and players is set out in Government Decision No. 329/2015. (XI.10.).

Holders of land-based casinos registered as legal entities in Hungary (section 3, paragraph 1b). may open sites with national permission.

The state monopoly on casinos is divided between two companies: Szerencsejáték Zrt. and Magyar Lóversenyfogadást-szervező Kft. (section 3, paragraph 1a). They open sites with a .hu domain.

Online sports betting is not regulated separately and is subject to the state monopoly.

The Law «On Investments» for foreign citizens and companies indicates the condition for the creation of the site. An online casino can be opened by a person or company that has a land gambling establishment in Hungary.

According to Government Decision No. 329/2015 (XI.10.), The operators of gambling sites must inform the participants about the risks of the games (Section 1, Clause 1). They are obliged to create a partial funding fund for organizations that provide prevention or treatment of gambling addiction in Hungary (Section 22, paragraph 1).

Hungarian citizens cannot start the game before confirming their identity (regulation of the European Gaming and Betting Association called Consumer Protection in EU online gambling regulation).

National companies are subject to administrative (maximum 100 million forints, confiscation of equipment) and criminal liability for violations of Hungarian law.

Jurisdiction-paradox

In 2013 — 2014 Hungary introduced new gambling licensing standards. International operators did not accept them. Companies have challenged the rules in the national court and the Court of Justice of the European Union (CJEU).

CJEU concluded that most of the articles in the Hungarian system regarding online casinos are contrary to European Union law. Now they are not applied in practice.

The current Hungarian licensing system for online and land-based casinos is the first precedent in world law when legislation is passed but not in force. Most government regulations can be ignored with impunity.

In Hungary, an emergency legal situation has developed, since a new licensing regime does not yet exist. National law prescribes a detailed gambling licensing system. But it practically does not work. By-laws are not applied in practice. Casinos operate on licenses issued in foreign jurisdictions (cross-licenses).

Technical support, contacts for addicted players and their relatives

The Country Drug Report 2019 of the Ministry of Human Rights of Hungary regulates measures to combat drug addiction, alcoholism, and ludomania. A report on the decrease in the level of gambling dependence of the population is presented there and a decrease in the number of state clinics is indicated.

Click here for information for visitors to online casinos in Hungary. There is a register of social protection authorities for dependent players (under the Law on Social Benefits), an application for self-exclusion, and determination of ludomania.