The Hungarian gambling regulator announced that it would block bank accounts related to illegal gambling operators starting July 1. The Supervisory Authority for Regulated Activities notified operators that it would partner with banks to restrict withdrawal and deposit transactions of accounts connected to unlicensed gambling websites.
According to bookie pay per head experts, banks can refuse bank card payments to unlicensed gambling sites. The regulator reminded the public of the dangers of using unlicensed sites in Hungary. Also, the SZTFH said that unlicensed operators do not comply with Hungarian laws that protect vulnerable groups, including minors. In addition, it will safeguard banking and personal data.
The Hungarian regulator also noted that players using unlicensed websites might risk not getting their payouts because of the restrictions on payment service providers.
Hungarian Gambling Regulator Blocking Illegal Payment
According to bookie PPH experts, the Hungarian government abolished its gambling monopoly in 2022. It is in compliance to the “Act of the Reorganization of Gaming. Also, it gave the state regulator the authority to keep a constant eye on the gambling industry. In addition, the regulator can take certain enforcement actions.
The SZTFH has the authority to require ISPs to prevent access to unlawful gambling websites. Also, it can demand that payment processors reject transactions associated with such IP addresses. Lastly, it can levy fines against non-compliant processors. To safeguard consumer safety and protection, the SZTFH recently fined an unidentified local citizen HUF30 million ($87,000) as part of its mission.
According to sportsbook pay per head sources, the Authority warned the general public that anybody caught operating illegal gambling sites in Hungary might face up to three years in prison. Also, they need to pay fines of up to HUF100 million ($290,000).
To qualify for a license following the gambling reform, applicants must demonstrate that they have been in business for at least five years in a licensed gambling jurisdiction within the European Economic Area (EEA). In addition, they must have stopped providing services to customers in Hungary within the last five years.
Candidates are also required to pay a 15 percent tax on gross gambling income (GGR). Also, the regulator charges a 2.5 percent supervisory fee on GGR up to a maximum of HUF10 million ($29,000). Lastly, licensed operators need to have capital reserves of at least HUF1 billion ($2.9 million).
