Hungary May Break Up Gambling Regulator as Casino Scrutiny Grows
The review puts the structure of Hungarian gambling regulation on the table. A government resolution published on August 31 instructs the justice minister to examine the possible closure of the Supervisory Authority for Regulated Activities, or SZTFH. The review must also consider where its existing responsibilities would go.
No decision to abolish the authority has been made. The September report will assess whether the plan is legally workable and what changes would be needed.
Casino Sopron Deal Adds Pressure
The move comes after renewed attention on Hungary’s casino concession system. One case attracting scrutiny is Casino Sopron. CAI Hungary Kft holds permission to operate the property until January 2061. Reports in Hungary said the underlying casino concession was extended for 35 years without an open public tender.
Hungarian law allows certain concession agreements to be concluded without a public tender when the operator qualifies under the relevant rules. Even so, the timing of the Sopron extension drew attention because the government had already announced a review of long-term casino arrangements.
The concession and the casino operating licence are handled separately. SZTFH maintains the gambling licence register and supervises operators, while the concession process involves a different part of the state administration. The government review therefore reaches beyond the Casino Sopron case and into the wider structure of gambling oversight.
Regulator Defends Its Record
SZTFH responded publicly on September 1. It stressed that Parliament established the authority in 2021 as an independent regulatory body. Under its current legal framework, SZTFH says it is accountable to Parliament rather than a government ministry.
The authority also pointed to its enforcement activity against illegal online gambling businesses. It said it would cooperate with the justice minister during the review.
Gambling represents only part of its workload. SZTFH also oversees areas including tobacco retail and mining, alongside several other regulated activities. Closing the body would therefore involve moving multiple regulatory functions to new homes.
September Deadline Sets Up Next Decision
Operators do not face an immediate licensing change because of the August resolution. Existing supervision remains in place while the government considers its options.
The September 30 report should provide the first indication of how far the administration intends to go. It could recommend keeping SZTFH with changes to its remit, restructuring the authority or distributing its powers among government agencies.
For the gambling sector, the last option would be the most consequential. Hungary would be changing who controls licensing and enforcement at the same time that decades-long casino concessions are being reviewed. The key question now is whether the concession review leads to broader changes in how Hungary regulates gambling.