Hungary Weighs Abolishing Independent Gambling Regulator SZTFH
TL;DR — Hungary is reviewing the future of the SZTFH, opening the possibility that the autonomous body responsible for gambling oversight could be abolished and its functions transferred to government-controlled institutions. A government resolution published on August 31 instructed Justice Minister Márta Görög to report by September 30. No foreign gambling companies had applied for a licence per SZTFH President László Nagy in a March 2025 interview.
SCCG Take — Increased government control could further dampen international operator interest in an already static market, underscoring the fragility of recent liberalization steps.
Hungary is reviewing the future of the Supervisory Authority of Regulated Activities (SZTFH), the autonomous body responsible for gambling oversight. A government resolution published on August 31 instructed Justice Minister Márta Görög to examine the authority’s operations, legal framework and options for reallocating its responsibilities. Görög must report by September 30. The resolution does not dissolve the SZTFH, and no successor body has been named.
SZTFH was established by Parliament in 2021 and is not subordinate to the government. In a September 1 statement, the regulator said it is “subject only to legislation” and reports “exclusively to Parliament”. The authority said it would cooperate with the review. It noted that sectors under its supervision, including gambling, generate more than HUF 1 trillion, about $3.16 billion, in annual tax and contribution revenue and directly employ more than 50,000 people.
Limited International Interest After 2023 Liberalization
Hungary ended the state operator’s formal monopoly over remote betting in January 2023. The rules allowed companies established in the European Economic Area to apply for licenses, subject to Hungarian suitability requirements and, for foreign EEA operators, representation through a registered local representative. The reform followed Court of Justice of the European Union rulings. In a 2017 case involving Malta-based Unibet, the court found that requirements including 10 years of gambling experience in Hungary were discriminatory and that the amended licensing process lacked sufficient transparency. It also ruled that penalties could not be imposed under legislation that breached the freedom to provide services.
As reported by Yogonet International, despite the reforms international operators have shown little interest. In a March 2025 interview, SZTFH President László Nagy was asked how many foreign gambling companies had received a licence. “None,” he said. Asked why, he replied: “Because none of them applied for a licence.” The regulator’s register, last updated September 1, lists two authorized online betting sites: tippmixpro.hu, operated by state-owned Szerencsejáték Zrt, and vegas.hu, operated by Budapest-based LVC Diamond. It also lists three licensed online casino sites, all run by LVC Diamond.
The Review’s Stakes for Regulatory Structure
The September 30 deadline will determine whether the independent model established in 2021 continues or whether gambling oversight shifts toward direct government institutions. The outcome will shape the framework that has so far produced only domestic licensees in a formally opened market.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
When liberalization fails to attract operators, governments often double down on control rather than fix the underlying barriers.
We've seen this movie before: a market opens on paper, no one shows up, and the political response is to tighten the reins instead of addressing taxation, compliance cost, or structural friction. Hungary's SZTFH review signals that the 2023 reform hasn't delivered, and the proposed shift toward government-controlled oversight will likely make international market entry even less appealing.
- Justice Minister ordered to report by Sept 30 on reallocating SZTFH functions to government bodies
- No foreign operators applied for licenses after 2023 liberalization ended state monopoly
- SZTFH oversees sectors generating ~$3.16B annual tax revenue, employs 50,000+ people
SCCG angle: SCCG has partnered in every regulated European market and maintains direct relationships with operators who navigated similar post-liberalization environments in Greece, the Netherlands, and Czech Republic. We help clients assess whether emerging markets like Hungary are worth the compliance investment or better left alone until structural economics improve.
Gaming, betting and prediction markets — the desk’s read, every weekday.
Subscribe →