Unibet wins European Court judgement against Hungary’s licensing laws

The Court of Justice of the European Union (CJEU) has ruled that Hungary’s gambling legislation restricts the EU’s principle of freedom to provide services, in a judgment that could force other European countries to relax their regulatory frameworks.

In the longstanding case between the Hungarian state and Unibet, the Court determined that certain licensing requirements put foreign operators at an unfair disadvantage, specifically a clause that requires operators to prove they had held a presence in Hungary for ten years.

The European Gambling and Betting Association (EGBA) said the ruling came at a crucial time for other jurisdictions where remote gambling legislation does not comply with EU law.

“[This] is a clear message to other gaming authorities, including Holland and Poland.

“Their actions do not serve the interest of consumers, they fail to channel the consumers to reliable providers, instead they merely prop up failed regulation,” secretary general of trade body, Marteen Haijer commented.

However, Kindred Group lawyer Ewout Keuleers said this was not the end of the road for the operator.

“It’s an ongoing process as it now goes back to the national judge, this is not the final chapter,” he added.

EGBA’s Haijer also said it was now up to the Hungarian court to rule on the case, and offer up any possible sanctions.

In 2014 Hungarian authorities blocked access to a number of major operators’ sites, claiming all games of chance required a licence from the Tax and Customs Administration.

Amongst those blacklisted was Betsson, whose CEO Ulrik Bengtsson hailed the judgement as positive news for the industry.

“It is a strong signal from the CJEU that countries, such as the Netherlands, Poland and Hungary, that are attempting to enforce illegal local laws cannot do so,” he added.

The firm is in the process of opening a new development centre in Hungarian capital Budapest.