Hungary to Debate Scrapping Gambling Regulator Following Licensing Scandal

Hungary’s government has opened a review into whether the Supervisory Authority for Regulated Activities (SZTFH) should be dissolved, with its responsibilities shifted to ministries under direct state control.

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A resolution published in the Hungarian Gazette on August 31 instructed the justice minister to examine the feasibility of shutting down the regulator and to deliver a report by September 30.

The move comes after controversy over a long‑term casino licence granted by the SZTFH. Investigators revealed that CAI Hungary Kft, a company tied to businessman István Garancsi, received a 35‑year concession to operate the Sopron casino until 2061. The licence was awarded without a public tender.

The timing of the concession added to the backlash. Just weeks earlier, the government had promised to review all casino agreements in Hungary, many of which were issued in the final months of the previous Viktor Orbán administration.

SZTFH defends record and claims there is no political interference

Responding to the government’s review, the Supervisory Authority for Regulated Activities (SZTFH) stood by its record and rejected suggestions of political influence according to a NEXT.io report.

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In its statement, the regulator stressed that it was created by Parliament under Act XXXII of 2021 and is accountable only to lawmakers. “The SZTFH is an independent regulatory body established by the Parliament… subject only to legislation in terms of its activities and is solely accountable to the parliament for its operations,” the authority said. 

The regulator pointed to its enforcement record as proof of independence. It highlighted its work in shutting down illegal online gambling operators and said it had strengthened protections for minors in the tobacco market. 

According to the statement, these efforts included tens of thousands of traffic inspections, consistent regulatory action, and blocking illegal webshops. 

Although it pushed back against criticism, the SZTFH confirmed it would cooperate fully with the government’s review. “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 due diligence, taking full account of the applicable legal environment,” it added. 

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