Hungary Considers Abolishing Gambling Regulator SZTFH
Jacob Mitchell 
Key Takeaways:
- Hungary is evaluating the termination of its gambling regulator, SZTFH.
- A government resolution initiated a review of SZTFH's operations.
- A 35-year casino licence was granted without a public tender.
- SZTFH cited achievements in eliminating illegal online game organisers.
- The Justice Minister is tasked with reporting on the authority's abolition.
Hungary is currently considering the termination of its gambling regulator, the Supervisory Authority for Regulated Activities (SZTFH), just five years after its establishment. This development follows a resolution published in Magyar Közlöny, the Hungarian Gazette, on August 31, 2026, which initiated a government review of the authority.
Government Resolution and Licence Grant Concerns
The resolution states that the Hungarian government intends to examine the operations of the SZTFH and review existing legislation, a key aspect of gambling regulatory compliance. The objective is to determine how the authority could be abolished and its functions transferred to bodies under direct government control. The Justice Minister has been given a deadline of September 30, 2026, to report back to the government on these findings.
This scrutiny of the SZTFH comes after a 35-year casino licence was granted to CAI Hungary Kft without a public tender. This specific licence issuance appears to be a significant factor contributing to the government's decision to review the regulator's operational framework and future for Hungary gambling regulation.
SZTFH Defends Operations Amidst Review
In response to the government's agreement that a review of its operations is necessary, the SZTFH has issued a defence of its record. The regulator highlighted its "significant" achievements, particularly its efforts in combating the black market, which is crucial for trusted online casino sites. The SZTFH stated that it is an independent regulatory body, established by Act XXXII of 2021, and is subject only to legislation, being solely accountable to the parliament for its activities.
Within the gambling sector, the SZTFH claims to have achieved substantial results in eliminating illegal online game organisers. Furthermore, in the tobacco market, it has contributed to the protection of young people by strengthening measures and regulatory solutions for minors, including through tens of thousands of traffic inspections and consistent regulatory action. The authority affirmed its commitment to cooperate fully with the designated minister to complete the legal due diligence, while taking into account the applicable legal environment.
Broader Government Review and Market Uncertainty
The potential abolition of the SZTFH is part of a wider review initiated by the new TISZA (Freedom and Reform Party) government. This review encompasses all state-run organisations, including the national lottery and sports betting firm Szerencsejáték Zrt. This broader governmental assessment contributes to a climate of uncertainty within Hungary's gambling landscape, which is described as mirroring the prevalence of such uncertainty across Europe.
