Hungarian legislation could face European challenge, says EGBA
Industry body highlights requirement that online operators must first have local land-based presence
Hungary’s online gambling framework is open to a possible European Commission infringement procedure, according to a senior legal advisor at the European Gaming & Betting Association (EGBA).
Last week Hungary notified the Commission of an amendment which maintains the state-owned sports betting monopoly and requires those offering online casino to also have a land-based presence.
And this morning Ekaterina Alexandrova from EGBA said that the Commission would be “consistent in its approach” if it opened an infringement procedure against Hungary over the requirements.
“The Hungarian draft law de facto impedes companies established in other member states of the EU from entering the Hungarian online gambling market, is discriminatory and has an adverse effect on the Single Market,” Alexandrova said.
“The EC takes a very serious view on establishment requirements, which have been the basis for the opening of several infringement cases against member states in 2013. EGBA thus believes, that the EC would be consistent in its approach⦠by starting a possible infringement procedure against Hungary,” she added.
Gábor Helembai, a gaming lawyer and partner at law firm Forgó, Damjanovic & Partners, this morning told eGaming Review that as long as the amendment remains in law, foreign operators wanting to enter the Hungarian market are left with very few options.
“You have to have a land-based concession if you want to apply for an online concession, and currently there are only two companies who have a land-based concession in Hungary,” Helembai said.
“The only choice for the foreign only operators is to enter an agreement with the land-based casinos and open an online casino through the land-based concession,” he added.
Hungary’s regulator was dealt another blow by Europe yesterday, when the European Court of Justice ruled against it on legislation banning the operation of slot machines outside of casinos.
Although the case referred to land-based operators, it could have broader implications for the country’s online regulation, with Alexandrova warning that it “highlights that Hungary should carefully take into consideration the detailed requirements of EU law”.
With the Hungarian government showing little sign of shifting its position, the outlook for operators does not look good, she added.
Last year the Hungarian Gaming Supervision Department blocked the websites of several major operators, stating that operators including bet365 and Ladbrokes were in violation of national law.