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Hungarian Gambling Industry Updates in 2023
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Last year, Hungary put an end to its monopolization of the gambling industry. The European Commission played an important role in lobbying Hungary to open up its market to EU-based gambling businesses.
Starting this year, gambling investors based in Europe have had the right to apply for licensing in Hungary. Below is an overview of the new iGaming landscape in the country.
What’s the Relevant Authority in Charge of Gambling Regulation?
The Supervisory Authority of Regulatory Affairs (SARA) will be in charge of regulating casino games and sports betting. This means it will license any website that aims to provide slots, bingo, poker, slots roulette, or blackjack.
It will also regular sports betting, fantasy betting, and lotteries. The only type of gaming SARA won’t oversee is social games. If you launch a free-to-play blackjack app, you don’t need to acquire a license from SARA.
Although Hungarian gambling laws have improved, they’re not very progressive. The country plans to license a maximum of 12 land-based casinos. And only these casinos will hold the rights to operate gambling websites. This will limit the number of betting companies licensed to operate in Hungary.
That being said, Hungary no longer prohibits foreign gambling sites from providing their games to Hungarians. In a way, Hungary can be compared to US states like Texas, New York, and Florida.
Online gambling in Texas, New York, and Florida is allowed if you use safe offshore casinos. Likewise, you can bet on sports or play slots online in Hungary if you use a reliable operator based outside the country.
Who Can Apply for Gambling Licenses in Hungary?
Under its new gambling laws, Hungary insists that only transparent businesses will be licensed in the country. The country describes transparent operators as those based in Hungary. They also need to have a clean bill of health.
Secondly, Hungary is willing to license betting companies based in the European Economic Area (EEA) if they’re publicly traded companies. Casinos operated by governments in the EU can also apply for licenses. Additionally, operators based in countries with bilateral economic agreements with Hungary are welcome.
As already mentioned, SARA began licensing gambling companies on 1st January this year. Gambling licenses issued by SARA will have different expiry dates. However, the regulator will hold the sole power for suspending companies that violate its policies.
What are the Advertisement Rules for Gambling Companies?
Like many countries, Hungary is taking a proactive role in regulating how to betting companies advertise their brands. It requires that all casinos and sportsbooks seek authorization from SARA before publishing any adverts on local media networks.
Crucially, betting firms can’t target minors and young adults in their adverts. That means they can’t run ads on websites or print newspapers that target kids. They also can’t help unlicensed casinos push their brands in Hungary.
To be fair, Hungary’s advertisement rules are in line with those of other EU nations. Almost all countries prohibit iGaming businesses from targeting underage players in their ads.