Gambling Industry Report Slovenia And Hungary In Focus
According to the world’s news about the gambling industry and the speakers who have participated in the European Gaming Congress, Hungary and Slovenia have several pressing issues connected with this business sector.
Operators from European countries where gambling is legalized face many obstacles related to both regulations and the COVID-19 pandemic effects. Online gambling is the most problematic vertical as the governments of some states aren’t ready to make it open for independent operators.
Demonopolization could be the solution for the Slovenian gambling market
Jaka Repansek, Media and Gaming Expert, has provided expert insights into the gambling industry in Slovenia, highlighting its main problems. He has said that the lottery and betting sectors are still monopolized in the country, and nothing has changed on the regulatory side. Privately-owned companies can’t get licenses, and only state operators are allowed to provide their services.
According to the speaker, the government of Slovenia explains such an approach by the statement that the state monopoly helps to prevent unlawful gambling and brings more revenue to the public coffers. However, actually, it doesn’t solve the problem of illegal gambling because the majority of players migrate to the grey market where they have a wider choice of products. Jaka Repansek concluded that demonopolization could make operators comply with the law, pay fees, which would mean more money staying within the national jurisdiction.
Another problem is that Slovenia is still closed for remote gambling. Moreover, the regulator controls the law compliance thoroughly. Inspectors visit gambling websites and check whether it is possible to place bets. If they detect the law violation cases, the regulator punishes an operator. Some Slovenian iGaming companies tried to apply for the liberalization of online gambling, but they didn’t succeed.
Hungary has a considerable grey market
According to Helembai Gabor, Attorney-at-Law at Bird & Bird Hungary, the country has much in common with Slovenia. Starting from 2014, nothing has been changed in its regulations, which means that the remote gambling vertical remains unreachable for operators. It has led to the establishment of the grey market that constitutes quite a big part of the industry. Gambling companies from other states provide their services in the territory of Hungary but don’t pay taxes to its coffers.
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