Hungarian sports betting monopoly under threat
Ruling party submits proposals which would allow casinos to offer remote sports betting services
Politicians in Hungary will this week discuss proposed amendments to its Gambling Act that could spell the end to the country’s sports betting monopoly but limit remote casino licences to just two land-based operators.
Hungary is currently in the process of developing an online licensing system and under the current Act all seven land-based casinos are able to obtain a remote gambling licence should they meet licensing requirements.
But according to a proposed amendment, which is to be discussed in Parliament over the next two days, the market should be restricted to just two licensees which, if adopted would leave five businesses limited to their current retail operations.
And in what is sure to make the battle for the two licences even more competitive, it has also been proposed that casinos would then be entitled to challenge the state-owned sports betting monopoly by offering their own remote sportsbook services.
However, according to DLA Piper gaming lawyer Balint Damosy, the proposal is unlikely to be adopted in its current state.
“The proposal is a very poorly drafted piece of legislation, being unclear and containing several contradictions and incoherencies; therefore it is unlikely that the Parliament will adopt the proposal without amendments,” Damosy said.
Earlier this month the European Gaming & Betting Association (EGBA) said Hungary could face a challenge from the European Commission over current legislation which limits the award of online casino licences to only those holding a land-based presence in the country.
“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,” Ekaterina Alexandrova, senior legal and policy advisor at EGBA, said.