Unlicensed Lottery Run by Hungarian Resident Results in $87K Fine

The penalty is imposed at a time when lotteries involving valuable items like cars or real estate are gaining popularity.

The Hungarian Supervisory Authority for Regulated Activities (SZTFH), responsible for overseeing gambling operations, has announced the imposition of a substantial fine against an undisclosed individual for organizing an illegal real estate lottery. The individual, whose name was not disclosed, has been fined HUF 30 million ($87,000). The SZTFH reaffirmed its dedication to investigating and penalizing any instances of illegal or unlicensed gambling, with fines for organizers ranging from HUF 500,000 to HUF 100 million.

“The Supervisory Authority for Regulated Activities has recently issued a statement confirming the imposition of a HUF 30 million fine on a private individual for organizing an unlicensed real estate lottery,” stated the SZTFH.

Furthermore, the SZTFH highlighted that unlicensed gambling is a criminal offense that can result in up to three years of imprisonment for organizers, in addition to fines. The Authority also takes measures to protect consumers from illegal gambling advertisements, and individuals involved in the ads, publishers, and advertising service providers may face fines if found in violation.

The Authority emphasized that in unlicensed gambling, players participate at their own risk, as the Authority lacks the power to enforce prize payouts, and the legal enforceability of claims in court may be uncertain.”

A Surge in Popularity for Lotteries Is Evident

The Supervisory Authority has recently noted a notable uptick in interest in real estate and high-value item lotteries, some of which may involve notaries. However, the Authority has emphasized that the involvement of a notary does not automatically make such raffles or lotteries legal.

Referring to existing regulations, the Authority clarified that raffles or lotteries are considered games of chance where participants have the opportunity to win cash or other prizes with monetary value in exchange for money. As such, they are classified as regulated activities. Accordingly, businesses, organizations, or associations are prohibited from offering legal games of chance without proper licensing and authorization, as reiterated by the SZTFH.