According to an article published in the Hungarian Gazette, the Hungarian Government is considering the abolition of the Supervisory Authority for Regulated Activities (SZTFH), which regulates the country’s gambling, tobacco, and mining sectors.
Hungarian Authorities to Weigh If SZTFH Should Be Closed
News about this comes after revelations that the SZTFH had awarded CAI Hungary Kft., a company linked to businessman István Garancsi, a 35-year casino concession running until 2061 to operate the Sopron casino. The issue, according to the government, is that the concession was given without subjecting it to a public tender.
The extension was granted just weeks after the government pledged to review all casino concessions in Hungary. Several of them had been awarded shortly before elections by the previous administration led by former Hungarian president Viktor Orbán.
Established in October 2021, SZTFH employs more than 400 people. Its current president, László Nagy, was appointed by then-President Tamás Sulyok in 2024 for a nine-year term. The government has called on justice minister Márta Görög to prepare a report assessing the feasibility of abolishing the SZTFH and transferring its responsibilities to other government bodies. She has until September 30 to submit the report.
SZTFH Issues a Response to the Plans
SZTFH officially responded to the government’s plans, stating that it is an independent regulatory body established by the Hungarian Parliament under Act XXXII of 2021 on the Supervisory Authority for Regulated Activities. It said the authority is subject only to legislation in carrying out its activities and is accountable solely to Parliament for its operations.
Regarding enforcement, the SZTFH said it had achieved significant results in tackling illegal online gambling operators. In the tobacco market, it said it had contributed to the protection of young people by strengthening measures and regulatory mechanisms aimed at protecting minors. These efforts included tens of thousands of inspections of tobacco retailers, regulatory action resulting from those inspections, and the blocking of illegal online tobacco shops, SZTFH claimed.
Despite rejecting the criticism, the regulator said it would cooperate fully with the review. The SZTFH said it would work with the minister designated in the government resolution to support the completion of the legal due diligence, while taking full account of the applicable legal framework.
In other recent news from Europe, the United Kingdom’s Gambling Commission suspended the operating licenses of BresBet and Bet St George, which are believed to have violated its rules.