Hungary’s authority over regulated activities, the SZTFH, issued a stern warning today. From July 1 onwards, it will initiate a crackdown on bank accounts associated with unlicensed gambling operators, taking a stringent stand against illegal gambling activities.
The SZTFH has made it clear that it will be joining forces with banking institutions to enact restrictions on financial transactions connected to unlicensed gambling platforms. As a result, any deposits or withdrawals made to these bank accounts will be refused by the banks starting tomorrow.
Protecting Players and Ensuring Compliance
Amidst the clampdown, the SZTFH underscored the potential risks tied to gambling on unregulated websites. These platforms lack an obligation to adhere to Hungary’s stringent regulations designed to protect minors, vulnerable groups, and individual’s personal and banking information.
The authority cautioned that after the ban on payments to illicit operators comes into effect, gamblers involved with these platforms may fail to receive their winnings. To prevent players’ funds from being in jeopardy, the regulator advised them to verify the legitimacy of a gambling firm on the SZTFH website.
The “Act of the Reorganization of Gambling”, a law passed in Hungary in 2022, served to dismantle the state monopoly and furnished the state regulator with powers to regularly scrutinize the gambling sector and apply enforcement measures.
The SZTFH can instruct internet service providers to block access to illegal gambling sites and command payment providers to reject transactions connected to such platforms. Payment providers that fail to comply may face fines.
Emphasizing its commitment to safeguard consumers, the SZTFH recently imposed a hefty fine of HUF30 million ($87,000) on an individual for conducting an unauthorized lottery operation. It also pointed out that running illegal gambling operations in Hungary could result in criminal charges, potentially leading to up to three years in prison, and financial penalties reaching HUF100 million ($290,000).
The gambling reform stipulates that to acquire a license, operators must have a minimum of five years of experience operating in a licensed gambling jurisdiction within the European Economic Area (EEA). They must also cease their unlawful offerings to Hungarian clients within five years from the application date. Moreover, operators are required to maintain capital reserves of at least HUF1 billion ($2.9 million), pay a 15% tax on gross gambling revenue, and a supervisory fee of 2.5% of the gross gambling revenue capped at HUF10 million ($29,000).
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