Hungarian Parliament Approves Curbs on SZTFH Gambling Powers Under TISZA Reforms

Hungary’s Parliament voted on 2 October to reduce the powers of the Supervisory Authority for Regulated Activities (SZTFH) and dismantle its Concessions Council. The legislation targets the agency’s role in gambling licences and concessions as the TISZA government pursues a review of institutions linked to the prior administration.

The measure passed with 135 votes in favour, 46 against and six abstentions, carried by TISZA’s two-thirds supermajority in the National Assembly. It flows from Bill T/639, submitted 8 September, which removes the requirement for SZTFH prior consent on concession tenders, offers, contract conclusions, amendments or terminations. Ministers will now examine past awards, giving relevant parties a 30-day window to disclose ownership and management structures.

Prime Minister Péter Magyar and Finance Minister András Kármán back the changes as part of a campaign to address cronyism and rebuild economic trust. SZTFH, created in 2021, oversaw gambling alongside tobacco, mining and cybersecurity; its handling of concessions under the Fidesz government of Viktor Orbán drew particular criticism.

Casino Concessions Under Examination

A government resolution published 31 August in the Hungarian Gazette ordered an operational review of SZTFH, with Justice Minister Márta Görög tasked to report by 30 September on abolishing the authority and transferring functions to direct government bodies. Casino contracts in Szeged, Győr, Miskolc, Pécs, Debrecen and Sopron face focused scrutiny. Some run for up to 35 years, the Sopron concession linked to CAI Hungary Kft reportedly until 2061.

SZTFH has stated it never awarded concessions directly, a power held by government, and instead provided prior consent and oversight. It pointed to enforcement against illegal online gambling and minor protections in tobacco as part of its defence.

Persistent Centrality of Szerencsejáték Zrt

The authority’s oversight of 2022–2023 online gambling and sports betting reforms also faces re-examination. Those changes followed a European Court of Justice (ECEJ) ruling that Hungary’s monopoly for state-owned Szerencsejáték Zrt violated EU law. The reforms aimed at greater competition but drew few international operators amid terms that continued to favour the incumbent.

TISZA has replaced the board at Szerencsejáték Zrt to cut political influence, yet the operator stays a major state revenue source supporting cultural projects. According to SBC News, no firm commitment has emerged on further liberalising online gambling; tighter governance remains the stated priority. The open issue is which institutions will assume SZTFH’s supervisory duties if the agency is dismantled.

Reporting: SBC News

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