Hungarian government orders review of gambling regulator SZTFH

Government Orders Review of Gambling Regulator SZTFH

The Hungarian government has launched a formal review of the Supervisory Authority for Regulated Activities (SZTFH), the country’s gambling regulator, raising the possibility of its eventual dissolution. A government resolution published on 31 August 2026 instructs the justice minister to assess how the authority’s duties – including gambling, tobacco, and mining oversight – could be transferred to bodies under direct government control.

The resolution does not abolish the SZTFH immediately. Instead, it requires the justice minister to submit a report by 30 September 2026, detailing whether the authority can be wound up and its responsibilities reassigned. Prime Minister Péter Magyar signed the document.

What the Resolution Requires

Government Resolution 1277/2026 (VIII. 31.), published in issue 121 of the Magyar Közlöny, states that a review of the SZTFH’s operations and the relevant statutory framework is necessary. The review must consider regulatory solutions that would allow either the termination of the authority or the transfer of its tasks to government-directed bodies.

The resolution does not close the SZTFH. It commits the government only to examining the option, and the justice minister must report back on whether these aims are achievable.

Background to the Review

The resolution provides no explicit reason for the review, but it follows a controversial casino concession decision in July 2026. The SZTFH renewed the Sopron casino concession held by CAI Hungary Kft, a company linked to businessman István Garancsi, for a further 35 years to 2061. The renewal was granted without a public tender, which is permitted under Hungarian law if the holder qualifies as a reliable gambling organiser and applies through a simple offer procedure.

The renewal appeared in the authority’s licence register around 20 July and was first reported by mfor.hu. It came weeks after the government announced it would review casino concessions issued in the final months of the previous administration.

Scope of the SZTFH’s Responsibilities

The SZTFH licenses and supervises all gambling in Hungary, including online casino and sports betting. It also maintains the player-protection register and operates the blocking regime against unlicensed gambling sites. In July 2025, the authority reported that more than two thousand blocking orders issued in 2024 and 2025 had driven traffic towards licensed operators.

Gambling, however, is only part of the SZTFH’s broader remit. The authority also oversees:

If the SZTFH is dissolved, these functions would be transferred to bodies under direct government control.

The Authority’s Response

The SZTFH issued a statement on 1 September defending its record and legal standing. In its response (translated from Hungarian), the authority said:

“The SZTFH is an independent regulatory body created by parliament under Act XXXII of 2021 on the Supervisory Authority for Regulated Activities, which in respect of its activities is subordinate only to legislation, and which is accountable for its operations to parliament alone.”

Since beginning operations on 1 October 2021, the SZTFH said it has successfully pushed illegal online gambling operators out of the Hungarian market. It also highlighted tens of thousands of retail inspections that strengthened protection for minors in the tobacco market.

The authority argued that European Union law requires certain state tasks to be carried out by an administrative body independent of central government. It noted that its more than 400 staff have made it a recognised participant in international regulatory cooperation.

On the review itself, the SZTFH stated:

“Having set out the above, and with full regard for the applicable legal environment, the Regulated Activities Supervisory Authority will of course cooperate in every way with the minister designated in the government resolution in order to effectively complete the legal review.”