The Hungarian Parliament has approved a bill stripping the Supervisory Authority for Regulatory Affairs (SZTFH) of its powers to manage gambling concession agreements. This marks the first legislative step towards the new government’s plans to fully abolish the regulator.
Following the decision, SZTFH will no longer be responsible for concession agreements, while the Concession Council, a central part of the authority’s gambling regulatory structure, will begin the process of being dissolved. According to Global Gaming Insider, the government intends to completely abolish SZTFH and distribute its functions among other state institutions. However, it has not yet been announced which bodies will assume responsibility for managing concession agreements.
SZTFH Was Established in 2021
The Supervisory Authority for Regulatory Affairs (SZTFH) was established in October 2021 under the government of Viktor Orbán. The authority was responsible for gambling regulation and also oversaw a range of other sectors, including tobacco, mining and cybersecurity. The regulator has more than 400 employees. Critics argued that such a broad range of responsibilities was driven more by political connections than by the need to bring these areas under the supervision of a single authority.
In 2024, László Nagy became head of SZTFH on a nine-year mandate. The regulator itself repeatedly emphasised its independence, stating that it “is subject exclusively to legislation and is accountable only to Parliament.”
Following the TISZA party’s victory in the April 2026 parliamentary elections, a government led by Prime Minister Péter Magyar was formed in May. On 31 August, the authorities launched an official assessment of the possibility of abolishing SZTFH. The Justice Minister was instructed to prepare a report on the feasibility and rationale for dissolving the authority by 30 September. However, Parliament considered the transfer of concession-related powers before the assessment was completed.
Changes in the Gambling Sector
Gambling was among the first sectors to receive attention from Péter Magyar’s government after it took office. Representatives of the new administration criticised the previous government for insufficient oversight and a lack of transparency, and subsequently began reforms across several areas.
Tighter AML Requirements
One of the first measures was to tighten anti-money laundering (AML) requirements. In particular, operators were required to carry out more thorough risk assessments.
Szerencsejáték Leadership Changes
The government also reshuffled the management of state-owned betting company Szerencsejáték Zrt. The move followed reports that individuals with political connections had been appointed to the company’s board of directors.
Review of Casino Concessions
By the summer, the government had announced plans to review existing casino concession agreements. According to media reports, the previous authorities concluded long-term agreements in several cities in the final weeks before the April elections, including Szeged, Győr, Miskolc, Pécs, Debrecen and Sopron.
Some of the agreements have terms of up to 35 years. For example, the casino concession in Sopron was awarded to CAI Hungary Kft, a company linked to businessman István Garancsi, without a public tender. The agreement runs until 2061. The long duration of the contracts and the way they were awarded have prompted criticism and concerns over the continued influence of certain individuals and possible favouritism.
Transport and Investment Minister Dávid Vitézy said he intends to examine how the concessions were awarded and review the existing system governing casino operating rights. Following the transfer of concession-related powers from SZTFH, any changes to the terms of existing agreements or attempts to challenge them will take place outside the authority that previously administered them.
A Restrictive Market Model
The reform comes amid a low share of gambling activity remaining with licensed operators in Hungary. A significant proportion of players continue to use unlicensed platforms. Industry representatives link this situation to the country’s existing regulatory model, under which most gambling operating rights are held by a limited number of concession holders, particularly state-owned Szerencsejáték.
The limited range of legal offerings may encourage players to turn to offshore sites that fall outside Hungary’s requirements for regulatory oversight, taxation and player protection.
The authorities have not yet said whether the restructuring will include opening the market to more licensed operators. So far, the changes have focused primarily on governance and transparency, as well as the review of concession agreements awarded before the elections.
What Comes Next
By 30 September, the Justice Minister is expected to submit a report on the feasibility of abolishing SZTFH. It should set out which state institutions will assume the authority’s responsibilities for gambling, tobacco, mining and cybersecurity, as well as the timetable for transferring those functions.
For operators, the key questions are who will oversee concession agreements after the Concession Council is dissolved and whether the casino agreements concluded before the elections will remain in place following Vitézy’s review. Agreements running into the 2060s will affect several future governments, while attempts to revise or terminate them could lead to legal disputes with concession holders.
Operators and investors in Hungary’s gambling market are likely to face a prolonged period of uncertainty until the new regulatory structure is established.
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