These days, it is increasingly common for businesses to purchase a domain name and launch a website that contains gambling-related content. Many people are unaware that in Hungary, organising and promoting gambling activities is strictly regulated. For this reason, we have compiled the key legal requirements regarding gambling and gambling advertising, along with what website operators should keep in mind to avoid fines or even having their website taken down.
Important: This blog post does not replace any legal regulations or official legislation — its purpose is purely informative!
What Counts as Gambling?
According to Act XXXIV of 1991 (Szjtv.), a game qualifies as gambling if:
⇒ The player pays money or something of monetary value,
⇒ The prize can be expressed in cash or other monetary value,
⇒ Winning or losing depends largely on chance.
This includes lotteries, scratch cards, sports betting, casino games, online slot machines, poker tournaments, and other similar services.
Licensing Requirements in Hungary
Organising gambling in Hungary requires a license issued by the Supervisory Authority for Regulatory Affairs of Hungary (SARA). This applies to both traditional gambling and online gambling (so-called remote gambling). The licensing process is strict and examines several factors.
For more information, it is worth visiting the official website of the SARA : https://sztfh.hu/
Operating gambling activities without a license is illegal, and the authority may order the website to be blocked.
Advertising Regulations Related to Gambling
According to Section 2 (7a) of the Szjtv., advertisements promoting gambling may only be published in accordance with Sections 5 (1) and 21 of Act XLVIII of 2008 (Grtv.). Among other things:
- It is prohibited to place gambling advertisements in media targeting children or minors.
- It is restricted to displaying ads promoting unlicensed gambling services.
The Hungarian Advertising Code of Ethics also stipulates that gambling advertisements must not be misleading and must include player protection warnings (e.g., “No play under 18!”).
Rules and Measures
On June 29, 2023, the SARA published its announcement titled “Stricter Action Against Illegal Online Gambling” which introduced new obligations and measures against unlicensed gambling operations. Some key points include:
- From July 1, 2023, Hungarian payment service providers are obliged to prevent financial transactions going to or coming from unlicensed foreign online gambling sites. This means that if a website advertises or links to a foreign gambling service that is not listed as licensed by the SZTFH, the financial flows between them can be stopped.
- Contracts between payment service providers and gambling operators may only remain in effect if the operator has a license and is listed in the SZTFH register. This means that a payment service provider may terminate contracts with partners whose activity (e.g., domain name, website content) suggests a gambling organisation or support.
- Website blocking has already been used by the SZTFH in cases of unlicensed gambling, and now the authority can also order the blocking of specific financial transactions by decision.
What Are the Consequences of Violations?
If you promote unlicensed gambling or publish illegal advertising, you may face severe sanctions:
⇒Administrative fines
⇒Website blocking: the authority can order the site to be made inaccessible, especially if it is linked to gambling content and advertising.
⇒Financial transaction blocking
Authorities have the right to suspend unlicensed websites in the following cases:
• if the domain name was registered with a Hungarian service provider (regardless of the domain extension),
• if the content is hosted on a server located in Hungary or physically located within the territory of Hungary,
• if the data transmission passes through a Hungarian service provider’s network or through the territory of Hungary.
In the case of .hu domain names, the authorities have the right to suspend the domain name even if it was not registered with a Hungarian service provider.
What can a website owner do?
If you want to publish gambling-related content on your website, you should consider the following:
- Does the advertised or linked service have a valid license recognised in Hungary?
- Is the “18+ only” warning clearly displayed on every page?
- Does the content avoid implying guaranteed winnings or quick riches?
- Consider informing your payment service provider in writing that your activities do not fall under a gambling organisation.
- Consulting a legal expert before publishing gambling-related content may be advisable.
Summary
The organisation and promotion of gambling in Hungary require a license and are subject to strict regulations. Domain and website owners should be aware of these rules, as non-compliant content may result in significant fines, blocked transactions, or even full website blocking.