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Hungary Could Abolish Gambling Regulator as Casino Licence Faces Scrutiny

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Altay
Altay Celikkaya
Content Manager
Updated:
Reading Time: 3 minutes

Hungary is considering whether to dissolve the Supervisory Authority for Regulated Activities, known as the SZTFH, and transfer its responsibilities to government-controlled bodies. The review places the country’s gambling regulator under scrutiny following controversy over a long-term casino concession awarded without a public tender.

The authority oversees gambling alongside tobacco, mining and other regulated sectors. Restructuring could therefore affect licensing, enforcement and compliance processes across the Hungarian gaming market. The outcome could influence investment.

SZTFH logo beside the Hungarian flag flying on a flagpole against a plain white background

Regulation & Compliance

Key Takeaways From Hungary’s Regulatory Review

  • The justice minister must report on the feasibility of dissolving the SZTFH by 30 September 2026.

  • The review will examine how its responsibilities could be transferred to government-managed bodies.

  • Scrutiny intensified after a 35-year Sopron casino concession was reportedly granted without an open tender.

  • Existing licences and enforcement activity remain in place while the government assesses its options.

Government Orders Review of the SZTFH

The review was initiated through the 1277/2026 Government Resolution, published in the Hungarian Gazette on 31 August. The decision calls for an examination of the SZTFH’s operations and the legislation governing the authority.

The justice minister must assess which legal mechanisms could close the regulator and redistribute its functions among government-directed organisations. A report on the proposal’s viability must reach the cabinet by the end of September.

The decision begins a due-diligence process rather than immediately changing the regulator’s status. Until further legislation is proposed and adopted, the SZTFH retains its responsibilities and operators remain subject to the current framework.

Casino Concession Raises Market Access Questions

The institutional review follows criticism surrounding a concession awarded to CAI Hungary Kft to operate Sopron casino. The agreement reportedly extends the company’s right to run the venue until 2061, although the licence was not offered through a public tender.

The timing is commercially significant because the government had already indicated that Hungary’s casino concessions would be reviewed. For operators, the dispute raises questions about competitive access, licensing transparency and the criteria for awarding long-term gambling rights.

Similar questions are emerging elsewhere in Central Europe. Austria’s proposed gambling overhaul would introduce an open concession procedure for online gaming while retaining 13 land-based casino concessions under revised award rules.

SZTFH Defends Independence and Enforcement

The SZTFH said it was established by parliament under Act XXXII of 2021 as an independent regulatory body. It added that its activities are governed by legislation and that it is accountable to parliament.

The regulator highlighted its action against unlicensed online gambling, including website blocking and consumer-protection enforcement. Comparable pressure is visible in Sweden, where Spelinspektionen expanded enforcement against unlicensed operators and the affiliates and influencers promoting them during the second quarter of 2026.

Despite defending its record, the SZTFH said it would cooperate with the legal review. The authority has more than 400 employees, making the continuity of expertise, data systems and active supervisory cases a practical consideration in any transfer of powers.

Regulatory Structure Becomes a European Issue

Hungary would not be the first European jurisdiction to redesign gambling oversight. Ukraine replaced its former regulator with PlayCity and introduced real-time digital monitoring under the Ministry of Digital Transformation, showing how institutional reform can accompany technology-led supervision.

Hungarian operators must also prepare for European Union developments. AMLA is creating harmonised risk-based supervision standards for gambling and other non-financial sectors, shaping how national authorities assess money-laundering exposure.

The justice minister’s report should provide the first indication of whether Hungary intends to reform the SZTFH, divide its responsibilities or pursue full dissolution. Until then, the review remains a proposal, but its licensing and governance implications are already material for operators and suppliers.