Hungary Considers Closing Its Gambling Regulator, SZTFH
Hungary Considers Closing Its Gambling Regulator, SZTFH
According to a recent article in the Hungarian Gazette, the Hungarian government is exploring the possibility of dismantling the Supervisory Authority for Regulated Activities (SZTFH). This body currently oversees the country’s gambling, tobacco, and mining sectors. The move comes after controversy erupted over a casino concession awarded without a public tender.
Government Proposes Abolition of SZTFH
The government’s scrutiny of the SZTFH follows revelations that the authority granted CAI Hungary Kft., a company linked to businessman István Garancsi, a 35-year casino concession for the Sopron casino—valid until 2061. The concession was awarded without a public tender, just weeks after the government pledged to review all casino concessions in Hungary. Several of these concessions had been handed out shortly before elections by the previous administration under former President Viktor Orbán.
The SZTFH was established in October 2021 and currently employs more than 400 people. Its president, László Nagy, was appointed in 2024 by then-President Tamás Sulyok for a nine-year term. The government has now tasked Justice Minister Márta Görög with preparing a report on the feasibility of abolishing the SZTFH and transferring its responsibilities to other government bodies. She must submit the report by September 30.
SZTFH Responds to Abolition Plans
The SZTFH has officially responded to the government’s proposals, stating that it is an independent regulatory body established by the Hungarian Parliament under Act XXXII of 2021. The authority emphasized that it is subject only to legislation in carrying out its activities and is accountable solely to Parliament for its operations.
Regulator’s Independence and Achievements
Regarding enforcement, the SZTFH highlighted significant results in tackling illegal online gambling operators. In the tobacco market, it claimed to have contributed to protecting young people by strengthening measures and regulatory mechanisms aimed at minors. These efforts included tens of thousands of inspections of tobacco retailers, regulatory actions stemming from those inspections, and the blocking of illegal online tobacco shops.
Despite rejecting the criticism, the regulator said it would cooperate fully with the review. The SZTFH stated it would work with the minister designated in the government resolution to support the completion of legal due diligence, while fully respecting the applicable legal framework.
Other European Gambling News
In related developments from Europe, the United Kingdom’s Gambling Commission recently suspended the operating licenses of BresBet and Bet St George, which are believed to have violated its rules.
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