Hungary has opened the door to a major overhaul of its gambling regulatory system, with the government asking for a review of whether the Supervisory Authority for Regulated Activities (SZTFH) should be dissolved and its responsibilities transferred to government-controlled bodies.
The review was ordered through a government resolution published on 31 August, giving the justice minister until 30 September 2026 to report on how the authority could be wound up and its responsibilities reassigned.
The resolution does not abolish the SZTFH. Instead, it asks the government to examine whether such a move is legally and practically possible.
Gambling regulator’s future under review
The SZTFH has been responsible for regulating and supervising gambling in Hungary since October 2021, including online casino and sports betting.
Its responsibilities also extend well beyond gambling. The authority oversees areas including tobacco retail, mining and geology, insolvency practitioners, court bailiffs, cybersecurity certification and Hungary’s domestic ESG framework.
If the SZTFH were eventually dissolved, those functions would have to be redistributed among other authorities under direct government control.
The government resolution itself does not provide a specific reason for launching the review.
Casino concession puts regulator under scrutiny
The move follows renewed attention around a major casino concession decision.
In July, the SZTFH renewed the licence for the Sopron casino operated by CAI Hungary Kft, a company linked to businessman István Garancsi, for another 35 years, extending it to 2061.
The concession was renewed without a public tender under a legal procedure available to gambling operators that meet the requirements for a “reliable gambling organiser”.
The decision attracted scrutiny after appearing in the SZTFH’s licence register, while the government had already indicated that it intended to examine casino concessions issued during the final months of the previous administration.
SZTFH defends its independence
The regulator has responded by stressing its legal independence.
In a statement published on 1 September, the SZTFH said it was established by Parliament under Hungary’s 2021 legislation and is accountable for its operations to Parliament rather than the government.
The authority also pointed to its record in tackling illegal online gambling, including blocking unlicensed operators and strengthening player protection.
It said more than 400 employees currently work at the regulator and highlighted its participation in international regulatory cooperation.
The SZTFH also raised a potential EU-law issue, arguing that certain state responsibilities may need to be carried out by an administrative body independent of central government.
What happens next?
For now, the SZTFH remains fully operational and continues to oversee Hungary’s regulated gambling market.
The next significant milestone is 30 September, when the justice minister is expected to submit the review to the government.
That report could determine whether Hungary moves towards a fundamental restructuring of its regulatory system or keeps the existing model in place.
For operators, the uncertainty comes at an important time for Hungary’s online gambling market, where the SZTFH plays a central role in licensing, player protection and enforcement against unlicensed websites. Any eventual transfer of those powers could therefore have consequences well beyond the regulator itself.