Hungary reviews SZTFH as gambling concessions face major regulatory reform

Hungary is moving ahead with a significant restructuring of its gambling oversight framework after Parliament approved legislation removing concession-related responsibilities from the Supervisory Authority for Regulated Activities (SZTFH). The measure also provides for the dissolution of the authority's Concessions Council, marking an important change in how gambling concessions will be administered.

The reform has wider implications because the SZTFH has played a central role in licensing, supervising and regulating gambling activity in Hungary since its establishment in 2021. Although the new law does not itself immediately abolish the regulator, the TISZA government is examining whether the authority should ultimately be dissolved and its responsibilities transferred to other state bodies.

Parliament approves concession changes

The National Assembly approved Bill T/639 on 22 September 2026 following an accelerated legislative process. The final vote was passed with 135 votes in favour, 46 against and six abstentions.

The legislation concerns a number of concession-related laws and specifically removes the SZTFH's responsibilities connected with concession procedures. Once the relevant provisions take effect, the authority will no longer retain the concession-related functions covered by the amendment.

The reform also provides for the dissolution of the Concessions Council. The council formed part of the existing institutional framework surrounding concession matters and its removal represents a further step in the government's planned restructuring.

The parliamentary decision therefore represents more than a technical adjustment. It changes the division of responsibilities between the gambling regulator and the government at a time when Hungary is reassessing the wider institutional structure governing regulated activities.

SZTFH disputes its role in awarding concessions

The SZTFH has publicly challenged what it considers to be an inaccurate description of its previous role in the concession system. The authority has stressed that it did not possess the legal power to award gambling concessions directly.

Under the previous framework, the right to conclude concession agreements rested with the designated member of the government. The SZTFH's role included prior consent and related supervisory responsibilities rather than the formal decision to grant a concession.

That distinction is significant from a legal and institutional perspective. The current reform removes powers that the authority itself characterises as supervisory or consent-based while leaving the ultimate concession-awarding function with the government.

In its September statement, the SZTFH also defended its statutory position as an independent regulatory authority established by Parliament. It said that its activities are subject to legislation and that its reporting obligation is to Parliament.

Government review broadens the debate

The concession reform follows a wider government review launched in August. Government Resolution 1277/2026, published on 31 August, instructed the Justice Minister to examine the operation of the SZTFH and the legislation governing its activities.

Justice Minister Márta Görög was given responsibility for assessing the legal and institutional options surrounding the authority, including the possibility of abolishing it and transferring its functions to bodies operating under direct government control.

The review is therefore broader than gambling alone. The SZTFH also has responsibilities in areas including tobacco supervision, mining and other regulated activities. Any full abolition would consequently require a broader redistribution of regulatory duties across the Hungarian state.

From a governance perspective, the central question is not simply whether the SZTFH should continue to exist. It is also how its regulatory functions would be divided, which authorities would receive them and how legal continuity would be maintained during any institutional transition.

Casino concessions attract particular attention

Gambling concessions have become one of the most visible aspects of the review. Current reporting has identified casino arrangements connected with Szeged, Győr, Miskolc, Pécs, Debrecen and Sopron as areas receiving scrutiny.

Some of the relevant arrangements extend for decades. Public regulatory records show casino authorisations in several locations continuing into 2061, underlining the long-term commercial and legal consequences of decisions concerning the concession structure.

The Sopron market is one of the clearest examples. The Casino Sopron operating entity is CAI Hungary Kft and the relevant public record lists the casino's authorisation through January 2061. Reporting has described the related concession as a long-duration agreement.

The government review should not be interpreted as an automatic cancellation of those existing arrangements. The parliamentary reform changes institutional powers and responsibilities. Any decision affecting an existing concession would still need to be considered under the applicable legal framework.

That distinction is particularly important for operators, investors and other parties with an interest in the Hungarian gambling market. A restructuring of regulatory authority does not by itself establish that a particular contract is unlawful or that an existing authorisation has been cancelled.

The future of gambling oversight remains open

The possible abolition of the SZTFH would represent a major institutional change. The regulator was created in 2021 as an independent authority with responsibilities extending well beyond gambling.

Its gambling mandate includes licensing, official supervision, market monitoring and action against unauthorised gambling. The authority has also developed measures addressing player protection and illegal online gambling, including cooperation with financial institutions to restrict transactions connected with unauthorised sites.

Those functions would have to continue under any replacement model. The principal legal challenge would be ensuring that licensing decisions, compliance procedures, enforcement actions and player-protection obligations remain operational during the transition.

For the gambling sector, regulatory predictability is especially important because licence conditions, concession arrangements and compliance requirements influence long-term investment decisions. A change in institutional structure could therefore affect market expectations even before any substantive change to gambling legislation takes place.

Hungary's online gambling framework adds another layer

The institutional debate is unfolding against the background of earlier disputes over Hungary's online gambling regime.

Hungary opened remote gambling to a wider group of eligible operators from 1 January 2023. The SZTFH states that companies established in Hungary or in another European Economic Area state can organise remote gambling in Hungary if they meet the statutory conditions.

The European Court of Justice has previously examined several aspects of Hungary's gambling rules. In the 2017 Unibet International case, the Court found that aspects of the Hungarian authorisation system for online games of chance were incompatible with the freedom to provide services because the applicable arrangements could operate in a discriminatory and insufficiently transparent manner.

A separate 2018 Sporting Odds ruling also addressed the interaction between Hungary's state gambling system and the concession and licensing framework under EU law.

These decisions form part of a longer regulatory history rather than a single order requiring Hungary to abolish its gambling system. The legal background is therefore better understood as a series of challenges concerning market access, concessions, transparency and the application of EU law.

Hungary subsequently amended its framework and broadened access to remote gambling. Nevertheless, questions concerning market structure, state participation and access conditions have continued to attract attention within the European gambling sector.

Szerencsejáték Zrt remains central to the market

Szerencsejáték Zrt continues to occupy an important position within Hungary's gambling landscape. The company is wholly owned by the Hungarian state and operates a range of gambling products under the national framework.

Its position is relevant to the broader regulatory debate because Hungary uses a mixed market model. Some activities are available to private operators subject to licensing while other gambling activities remain subject to state involvement or concession arrangements.

Any future restructuring of the SZTFH would therefore need to account for the relationship between state-owned gambling operations, private licensees and concession holders.

For operators considering Hungary as a market, the key issue will be whether the institutional changes lead to clearer procedures and greater legal certainty. The government's stated direction suggests that further legislative and administrative decisions are likely to follow.

Legal certainty will be closely watched

The immediate effect of the September legislation is focused on concession-related powers rather than the wholesale cancellation of gambling licences. That distinction should remain central to any assessment of the reform.

The wider question is whether Hungary will proceed from a targeted redistribution of responsibilities to a complete reorganisation of gambling supervision. The government's review creates that possibility but does not, on its own, resolve how a replacement structure would operate.

For businesses active in Hungary, continued monitoring of legislation, official decisions and implementing measures will therefore be essential. Existing contractual rights may remain in force unless changed through the appropriate legal process while future concessions may be administered under a revised institutional model.

Conclusion

Hungary's latest gambling reform signals a clear shift in the country's approach to regulatory governance. Parliament has removed concession-related responsibilities from the SZTFH and approved the dissolution of its Concessions Council, while the TISZA government continues to consider whether the authority itself should eventually be dismantled.

The development is significant because the SZTFH has been responsible for gambling supervision within a much broader regulatory mandate. Any replacement structure will have to preserve licensing, compliance and player-protection functions while establishing a legally robust framework for the administration of concessions.

The long duration of several casino arrangements means that institutional changes may have consequences extending far beyond the immediate parliamentary vote. At the same time, the government's review should not be treated as proof that individual concession agreements or operators have acted unlawfully.

For the Hungarian gambling market, the most consequential issue now is the shape of the regulatory system that follows. Greater clarity, transparent procedures and predictable legal processes will be important for operators, investors and public authorities alike. Until the government completes the institutional review and any further legislation takes effect, the final architecture of Hungarian gambling oversight remains unsettled.

FAQs

What is SZTFH?
SZTFH is the Supervisory Authority for Regulated Activities, Hungary's statutory regulator responsible for gambling supervision as well as several other regulated sectors.

What has Parliament changed regarding SZTFH?
Parliament approved legislation removing the SZTFH's concession-related responsibilities and providing for the dissolution of its Concessions Council.

When did Parliament approve the changes?
The final parliamentary vote on Bill T/639 took place on 22 September 2026.

Does the new law immediately abolish SZTFH?
No. The approved concession reform removes specific responsibilities from the authority. A wider government review is separately examining whether the SZTFH itself could ultimately be abolished.

Who is reviewing the future of SZTFH?
Justice Minister Márta Görög was tasked with examining the authority's operation and the legal and institutional options for its possible restructuring or abolition.

Did SZTFH award gambling concessions directly?
The authority has stated that it did not have the legal power to award concessions directly. It described its previous role as involving prior consent and associated oversight.

Which casino locations are under scrutiny?
Current reporting identifies concession arrangements associated with Szeged, Győr, Miskolc, Pécs, Debrecen and Sopron as part of the wider review.

Does the reform cancel existing casino concessions?
Not automatically. Removing concession-related responsibilities from SZTFH does not by itself cancel existing contracts or licences.

What happened to Hungary's online gambling rules in 2023?
From 1 January 2023, Hungary opened remote gambling to eligible operators established in Hungary or another EEA state subject to statutory requirements.

Why is the European Court of Justice relevant to Hungary's gambling market?
The Court has examined Hungary's gambling framework in cases concerning market access, concessions, transparency and the freedom to provide services under EU law.