The current state of the sports betting market in Hungary is difficult to understand. Sports betting fans may have numerous questions, as the Hungarian sports betting market has undergone significant changes over the years. The opacity of the current situation can be attributed to several factors, such as the very limited information available that would provide a transparent overview of the changes in the Hungarian sports betting market and answer the questions that everyone is interested in.
Is sports betting legal in Hungary?
In order to understand the Hungarian sports betting market, it is important to know that it has moved from a state monopoly to a more liberalised environment and back to a state-dominated system. This change was mainly due to compliance with EU directives.
The change was brought about by a case initiated by Unibet, a well-known online sports betting agency. Unibet argued that Hungary’s licensing system illegally excluded EU licensed operators from the market. In a landmark case, the Court of Justice of the European Union (CJEU) ruled on 23 June 2017 that Hungary’s online gambling laws were incompatible with EU law and that Hungarian rules favoured domestic operators, which foreign companies found difficult to comply with.
The court pointed out that national regulations on online gambling must be transparent for all participants and therefore non-discriminatory. The court ruled that Hungary should reform its gambling laws to bring them into line with EU standards.
Although some legislative adjustments have been made since this case, critics say the market remains relatively closed to international competition. Ongoing legal and regulatory uncertainties and blockages continue to affect market dynamics. Furthermore, it is not easy for international companies to obtain the licenses that would make their activities legal. Thus, the market continues to operate under a near-monopolistic structure dominated by the state-owned company.
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