Hungary May Dissolve Independent Gambling Regulator

^{Hungarian Parliament Building in Budapest / © Shutterstock}

The Hungarian government is considering abolishing the Supervisory Authority for Regulatory Affairs (SZTFH), an independent regulator whose responsibilities include oversight of the gambling market. The plan is outlined in a government decree published on Aug. 31 in the official gazette Magyar Közlöny.

The government said it was necessary to review SZTFH’s operations and reassess the legislation governing the authority.

The justice minister has been tasked with preparing a report on the possibility of abolishing the regulator and transferring its powers to government-controlled bodies. The report is due by Sept. 30.

SZTFH has been operating since October 2021 as an autonomous regulatory authority established by parliament. In addition to gambling, it oversees the tobacco sector, mining and several other regulated areas.

The decree itself does not explain the reasons behind the potential reorganization. However, the move comes amid controversy over long-term casino operating rights in Hungary.

In July, Hungarian media reported that CAI Hungary, a company linked to businessman István Garancsi, had been granted the right to operate the casino in Sopron until 2061.

No open tender was held. Hungarian law, however, allows such agreements to be awarded without a public tender to operators that hold the status of a reliable gambling operator. According to Hungarian media reports, the National Concession Office handled the concession agreement, while SZTFH issued the permit required to operate the casino.