Notification Detail

SZTFH (Supervisory Authority of Regulatory Affairs) Decree .../... (...) amending SZTFH Decree No 20/2021 of 29 October 2021 on the implementation of tasks relating to the authorisation, management and monitoring of certain types of gambling .

Notification Number: 2022/67/HU (Hungary )
Date received: 03/02/2022
End of Standstill: 04/05/2022 ( 04/06/2022)

Issue of detailed opinion by: Malta
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Message 002

Communication from the Commission - TRIS/(2022) 00341
Directive (EU) 2015/1535
Translation of the message 001
Notification: 2022/0067/HU

No abre el plazo - Nezahajuje odklady - Fristerne indledes ikke - Kein Fristbeginn - Viivituste perioodi ei avata - Καμμία έναρξη προθεσμίας - Does not open the delays - N'ouvre pas de délais - Non fa decorrere la mora - Neietekmē atlikšanu - Atidėjimai nepradedami - Nem nyitja meg a késéseket - Ma’ jiftaħx il-perijodi ta’ dawmien - Geen termijnbegin - Nie otwiera opóźnień - Não inicia o prazo - Neotvorí oneskorenia - Ne uvaja zamud - Määräaika ei ala tästä - Inleder ingen frist - Не се предвижда период на прекъсване - Nu deschide perioadele de stagnare - Nu deschide perioadele de stagnare.

(MSG: 202200341.EN)

1. Structured Information Line
MSG 002 IND 2022 0067 HU EN 03-02-2022 HU NOTIF


2. Member State
HU


3. Department Responsible
Igazságügyi Minisztérium
EU Jogi Megfelelésvizsgálati Főosztály - Műszaki Notifikációs Központ
H-1055 Budapest, Nádor u. 22.
E-mail: technicalnotification@im.gov.hu


3. Originating Department
Szabályozott Tevékenységek Felügyeleti Hatósága
Jogi, Ellenőrzési és Szerencsejátékügyi Igazgatóság
H-1051 Budapest, Sas u. 20-22.
E-mail: jeszi@sztfh.hu


4. Notification Number
2022/0067/HU - H10


5. Title
SZTFH (Supervisory Authority of Regulatory Affairs) Decree .../... (...) amending SZTFH Decree No 20/2021 of 29 October 2021 on the implementation of tasks relating to the authorisation, management and monitoring of certain types of gambling .


6. Products Concerned
Remote gambling as betting organised exclusively by means of communications devices and systems


7. Notification Under Another Act
-


8. Main Content
In conjunction with the Draft Act on the amendment of certain acts concerning the organisation of remote gambling, the draft contains the implementing rules for the legislative provisions intended to be introduced for the organisation of remote gambling, in the areas of the minimum amount of the initial (share) capital required for the licensing of remote gambling, the minimum experience required from the gambling operator for organising remote gambling, the maximum duration of the licence and the minimum amount of security to be provided by the remote gambling operator.

The draft allows companies registered in an EEA state other than Hungary to apply for a licence in their own name and to carry on the gambling operator activity through a branch in Hungary, as well as to establish a Hungary-registered company for the organisation of remote gambling, in which case the Hungarian company will be the licensee. The draft provides for mandatory representation in the licensing procedure if the applicant is a company incorporated in an EEA state other than Hungary.

Concerning the organisation of remote gambling, the draft introduces the institution of a player protection action plan and lays down detailed rules on the mandatory elements of its content, the frequency of its preparation, its submission to the Gambling Supervisory Authority and the reporting by the organiser of remote gambling on the implementation of the action plan.
With regard to the technical and information technology requirements for the organisation of remote gambling, the draft does not lead to any change in the current requirements.


9. Brief Statement of Grounds
Pursuant to the existing provisions of Act XXXIV of 1991 on gambling operations, the President of the Supervisory Authority of Regulatory Affairs, acting in its supervisory capacity, has the regulatory power to establish detailed rules on the licensing and monitoring of the organisation of remote gambling, the personnel, technical and economic prerequisites and conduct of the organisation of remote gambling, and the conditions of participation in remote gambling, which are laid down in SZTFH Decree No. 20/2021 of 29 October 2021 on the implementation of tasks related to the authorisation, management and monitoring of certain types of gambling.

Taking into account that the new legislation does not exclude the organisation of remote gambling by companies incorporated in EEA countries other than Hungary, the draft provides for mandatory representation of such applicants in the licensing procedure in order to facilitate the market entry of foreign operators. Aiming to ensure the success of the licensing procedure, the draft also lays down detailed rules on the registration of the representative and the conditions for registration.

The draft also intends to facilitate the organisation of remote gambling by companies incorporated in EEA countries other than Hungary by providing that such operators may also organise remote gambling through a branch in Hungary.
The introduction of a player protection action plan for the organisation of remote gambling serves the increased enforcement of player protection aspects and the principle of responsible game organisation.

Gambling carries the risk of addiction, which can be damaging to mental health, and can also cause harm in psychological, financial, social, professional and family terms. For the majority of gamblers, gambling remains an occasional or recreational activity, but the size and ratio of the online sports betting market within the gambling market have grown steadily in recent years.

According to recent research (Borbála Paksi — Anna Magi — Zsolt Demetrovics: The risks of the development of pathological gambling addiction in the Hungarian population in relation to online sports betting, Viselkedéskutató Társadalomtudományi és Szolgáltató Kft., 2020) the differing trend of those who tried online sports betting and those who have played recently or in the past month suggests that, while in the first half of the 2010s, online sports bettors in Hungary tended to be trial players and not regular users, today only few of them stop participating in online sports betting after the trial period.

Among active players who have gambled recently or in the past month, the role of online sports betting is growing in Hungary compared to other gambling activities. The abolition of the state monopoly on remote gambling will reinforce this trend as new players enter the market.

The problematic online sports bettors are younger compared to the non-problematic group. Data from Hungary before 2015 show that people who start gambling at a younger age are more likely to develop gambling-related problems. These findings were confirmed by the 2020 research.

All possible interventions addressing gambling-related problems that were examined in the study were considered useful by the players who took part in the research. The intervention considered most useful was the prevention of gambling by young people under the age of 18, but the possibility of self-regulation of gambling use, the regulation of gambling advertising by gambling operators and raising awareness of the dangers of excessive gambling were also rated highly.

The high level of protection of players justifies the prevention and reduction of gambling practices that are dangerous or harmful to the players or to their environment. The new obligations under the draft will require operators to submit an annual player protection action plan to the Gambling Supervisory Authority, and to report annually on the implementation of its measures.


10. Reference Documents - Basic Texts
Reference(s) to basic text(s): - SZTFH Decree No 20/2021 of 29 October 2021 on the implementation of tasks related to the authorisation, management and monitoring of certain types of gambling , the content of which is affected by the following notifications: 2014/353/HU, 2013/121/HU, 2012/151/HU


11. Invocation of the Emergency Procedure
No


12. Grounds for the Emergency
-


13. Confidentiality
No


14. Fiscal measures
No


15. Impact assessment
-


16. TBT and SPS aspects
TBT aspect

No – the draft is neither a technical regulation nor a conformity assessment procedure.

SPS aspect

No – the draft is neither a sanitary nor a phytosanitary measure.

**********
European Commission

Contact point Directive (EU) 2015/1535
Fax: +32 229 98043
email: grow-dir2015-1535-central@ec.europa.eu

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