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Hungarian Law Strips SZTFH of Concession Powers: A Comprehensive Guide

By jili tutorial · October 7, 2026

Hungarian Law Strips SZTFH of Concession Powers: A Comprehensive Guide

Overview: A Major Shift in Hungary’s Regulatory Landscape

On 1 October 2026, a significant legal change took effect in Hungary: the Supervisory Authority for Regulated Activities (SZTFH) lost its powers related to concessions. This move, part of a broader government effort to restructure regulatory oversight, has immediate implications for gambling, tobacco, mining, and other concession-based industries. Below, we break down the law, its context, the reactions it has sparked, and what comes next.

Background: The SZTFH and Its Role

What Is the SZTFH?

The Supervisory Authority for Regulated Activities (Szabályozott Tevékenységek Felügyeleti Hatósága, or SZTFH) was established in 2021 under Hungary’s previous government. It is an autonomous regulatory body reporting directly to Parliament, with over 400 staff. Its remit covers:

The Concession Controversy

The government’s decision to strip the SZTFH of its concession powers stems from longstanding criticism. According to a government statement, the SZTFH’s independence was questioned because a former administrative state secretary of the Prime Minister’s Cabinet Office was appointed as its head for a nine-year term. The government also noted that no open call for applications was required for leadership posts within the authority.

In a government resolution published on 31 August 2026, the justice minister was asked to report by 30 September on how the SZTFH could be wound up and its tasks transferred to bodies under direct government control.

The Law: Act LIX of 2026

Legislative Process

Key Provisions

  1. End of SZTFH Concession Powers: The law terminates all tasks and powers of the SZTFH relating to concessions.
  2. Abolition of the Concession Council: The authority’s Concession Council is dissolved.
  3. Transfer of Documents: The SZTFH’s president must hand over all concession-related files to the minister responsible for state assets within 30 days. These include:
    • Tender documents
    • Concession contracts
    • Inspection records
  4. Future Role of Government: The government may decide, by decree, which minister or central government body will:
    • Run concession tenders
    • Conclude, amend, or terminate concession contracts on the state’s behalf
  5. Pending Abolition: The government has announced plans to abolish the SZTFH entirely, with its remaining tasks distributed among other state bodies. However, no specific timetable has been set.

SZTFH’s Rebuttal: “We Never Had Concession Powers”

On the day of the parliamentary vote (22 September 2026), the SZTFH published a corrective notice disputing what it called “serious inaccuracies” in the bill’s justification and during the parliamentary debate.

Key Points from the SZTFH’s Statement

The SZTFH also rejected what it described as “unfounded generalisations” made about its employees during the parliamentary debate.

Practical Implications: What Changes Immediately

For Ongoing Concession Procedures

The SZTFH’s prior consent is no longer required for any concession procedures, including:

For Past Decisions

Concession contracts and prior consents granted before 1 October 2026 remain valid unless challenged separately. However, future oversight of these contracts will now fall to the minister responsible for state assets or other bodies designated by government decree.

For Regulated Industries

IndustryPrevious Role of SZTFHNew Situation
Gambling (casinos, online casinos)Prior consent for concessionsMinister or government body decides
National tobacco shopsInspection and prior consentMinister or government body takes over
MiningConcession-related checksTasks transferred to sectoral minister
Other concession activitiesDocument review and inspectionGovernment decree will assign responsibilities

Future Outlook: Abolition of the SZTFH

The government has stated it intends to abolish the SZTFH entirely, distributing its remaining tasks among other state bodies. However:

Potential Challenges

Comparison: Hungary’s Approach vs. International Norms

AspectHungary (Post-2026)Typical EU Practice
Regulatory independenceReduced; functions moving to government-controlled bodiesIndependent regulators common (e.g., UK Gambling Commission, Malta Gaming Authority)
Concession awardingMinisterial or government decreeOften done by independent regulator or dedicated concession office
Oversight of concession contractsSectoral ministerTypically independent regulator or ministry with checks and balances

Conclusion: A Shift Toward Centralized Control

The stripping of the SZTFH’s concession powers marks a decisive move by Hungary’s government to bring regulatory oversight under direct political control. While the government cites concerns over the authority’s independence and past political ties, the SZTFH counters that its role was always limited and that the changes may create more uncertainty than improvement. For businesses operating in gambling, tobacco, or mining sectors, immediate attention to the new decision-making bodies is essential. The long-term fate of the SZTFH itself remains unclear, but its influence over concessions has definitively ended.