The Hungarian government is actively evaluating the complete abolition of the Supervisory Authority for Regulated Activities (SZTFH), the independent state body responsible for overseeing the nation’s gambling, tobacco, and mining industries. According to a decree published in the official Hungarian Gazette, the administration has directed Justice Minister Márta Görög to draft a comprehensive report by September 30 assessing the legal feasibility of dismantling the agency and reassigning its regulatory responsibilities across existing ministry departments. The move signals potential structural upheaval for Central Europe's land-based and online gaming markets.

Controversy Surrounding No-Bid 35-Year Casino Concession

The political push to dismantle the agency stems from the SZTFH’s recent decision to grant a 35-year casino concession extending until 2061 to CAI Hungary Kft. for the operation of its venue in Sopron. Government officials highlighted that the lucrative long-term concession—linked to prominent businessman István Garancsi—was awarded directly without being subjected to a transparent public tender process. Crucially, the extension occurred just weeks after the government pledged to conduct a thorough review of all commercial casino concessions, many of which were granted shortly before national elections.

Institutional Autonomy and Statutory Oversight Record

In response to the government’s decree, the SZTFH issued a formal statement defending its regulatory track record while affirming its constitutional independence. Established in October 2021 under Act XXXII and employing over 400 personnel, the authority noted that its leadership—currently headed by President László Nagy—is accountable exclusively to the Hungarian Parliament. The regulator pointed to its enforcement metrics over recent years, emphasizing its aggressive blocking of unlicensed online gambling domains and extensive compliance sweeps across physical retail markets, while confirming it will fully cooperate with the Justice Ministry's legal review.

Market Impact and the Impending Legal Deadline

If the Justice Ministry's report recommends dissolving the authority, Hungary's gambling regulatory framework will face significant operational restructuring. Reassigning supervisory powers away from an independent body back toward core government ministries could alter how online gambling licenses, land-based casino concessions, and technical compliance standards are administered statewide. Domestic and international operators now await the September 30 legal due diligence deadline to see whether Hungary will execute a total overhaul of its gambling oversight framework.

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