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Online Gambling Runs Foul of Local Laws

5 Jul 2004

HUNGARY -- As reported by the Business Journal: "Locals using the services of foreign-headquartered online gambling operations may find themselves in trouble when it comes to claiming their prizes, because such services are considered to be illegal under Hungary's Gambling Act, an official at the Gambling Supervision (SzT) warned last week.

"The supervision is currently investigating the activity of online betting sites, especially that of the world's largest online betting group, Sportingbet Plc, which launched its Hungarian language gambling service at www.sportingbet.com in mid-May.

"'We believe the internet-based service [of Sportingbet] violates the Hungarian Gambling Act in several ways,' said László Oravecz, department head at the Gambling Supervision.

"According to Oravecz, the act says publishing offerings for gambling services via telecommunication devices and networks – including the internet – requires the approval of the Gambling Supervision. He said the licensing obligation also applies to the local organizing, sale, marketing and advertising activities of foreign gambling services.

"...Oravecz said people who decide to avail themselves of such gambling services run the risk that their prizes cannot be legally claimed within the territory of Hungary. Participation – in certain cases – may also qualify as a breach of law and may lead to legal proceedings, he said..."

 
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