Hungary: Regulator to Start Blocking Illegal Gambling Payments

Hungary’s Supervisory Authority for Regulated Activities (SZTFH) announced today that the blocking of bank accounts linked to illegal gambling operators would begin from July 1.

Payments to Illegal Gambling Websites Will Be Refused

The SZTFH notified all interested parties that it would work in close cooperation with the banks to implement restrictions on deposits to and withdrawals from bank accounts held by unlicensed gambling websites, and effective tomorrow, the banks will refuse bank card payments to such businesses.

The Authority used the occasion to remind the public of the dangers of gambling with unlicensed websites as the operators utilizing these intellectual properties (IPs) have no obligation to comply with the strict regulation of Hungarian law covering the protection of minors and other vulnerable groups, as well as player personal and banking data.

The SZTFH also noted that once payment service providers implement the restrictions on payments to and from illegal operators, players gambling with unlicensed websites risk not getting their winnings.

To avoid having their funds in limbo, the regulator recommended to players to check on the SZTFH website whether a firm is authorized to offer gambling products and services, highlighting that cross-checking with the official operator register there is the only way they can guarantee the safety of their funds and personal data.

Surveillance and Enforcement Powers

The “Act of the Reorganization of Gambling” Hungary passed in 2022 not only dismantled the state monopoly but also gave the state regulator powers to continuously monitor the gambling space, as well as a set of enforcement measures.

The SZTFH can issue orders to internet service providers (ISPs) to block access to illegal gambling websites, order payment providers to refuse transactions linked to such IPs, and fine payment providers which do not comply.

Seeking to deliver on its primary goal of ensuring consumer safety and protection, the SZTFH recently imposed a fine of HUF30 million ($87,000) on an unnamed resident for running an illegal lottery operation.

The Authority also reminded the public that running illegal gambling operations in Hungary is subject to criminal prosecution bearing a penalty of up to three years of jail time, besides financial sanctions of up to HUF100 million ($290,000).

Under the gambling reform, operators seeking to obtain a license should have at least five years of operation in a licensed gambling jurisdiction within the European Economic Area (EEA) and have discontinued their illegal offering to Hungarian customers within five years of the application date.

Candidates should also maintain capital reserves of no less than HUF1 billion ($2.9 million), pay a 15% tax on gross gambling revenue (GGR), as well as a supervision fee of 2.5% of GGR capped at HUF10 million ($29,000).