EU court spanks Hungary’s online gambling laws … again

Hungary’s restrictive online gambling laws have once again been taken to the woodshed by the European Union’s top court.

On Wednesday, the Court of Justice for the European Union (CJEU) issued a preliminary ruling in the case of UK operator Sporting Odds Ltd, a subsidiary of Sportingbet, which was fined HUF3.5m (US$13,600) for offering services to Hungarian punters without a local license.

EU law allows member states to restrict access by gambling operators licensed in other member states, provided these protectionist impulses maintain a reasonable façade of emphasizing consumer protection – by limiting citizens’ capacity to gamble excessively online – over the state’s desire to fill its coffers with gambling revenue.

The CJEU ruled that Hungary’s refusal to grant online gambling licenses to any company that didn’t run a local land-based casino was at odds with the country’s argument that its gambling rules were primarily intended to minimize the potential harms of offering its citizens too many gambling options.