Future of Hungarian gambling regulator in doubt
The government has ordered a review of Hungary’s Supervisory Authority for Regulated Activities (SZTFH).
Hungary.- The new government of Péter Magyar and the TISZA Party is weighing the possibility of disbanding the Hungarian gambling regulator. A resolution published in the state gazette, Magyar Közlöny, places the Supervisory Authority for Regulated Activities (SZTFH) under review, with the government seeking an evaluation of both its operations and the legal framework governing it.
The aim, according to the resolution, is to assess whether the regulator could be abolished and its responsibilities reassigned to bodies operating under direct government control. Hungary’s Justice Minister Márta Görög has been instructed to present findings to the government by the end of the month.
The SZTFH was only established five years ago under Act XXXII of 2021 on the Supervisory Authority for Regulated Activities. As well as gambling, it regulates sectors as diverse as mining and geology, legal professions and tobacco sales. It’s faced several controversies, including over the decision to award a 35-year casino licence to CAI Hungary Kft without conducting a public tender process.
The regulator has issued a statement defending its record, highlighting what it described as major successes, particularly in tackling illegal gambling activity. It claims to have “achieved significant results in eliminating illegal online gaming organisers” in the gambling sector. It also highlighted its work to tackle underage tobacco sales, including “tens of thousands” of inspections of retailers and the blocking of illegal online retailers.
“The Regulated Activities Supervisory Authority will, of course, cooperate in every way with the minister designated in the Government Resolution in order to effectively complete the legal due diligence, taking full account of the applicable legal environment,” the regulator said.
Magyar took office on May 9, ending the 16-year reign of Viktor Orbán’s Fidesz government. His administration is carrying out reviews of various state-operated institutions, including the lottery and sports betting operator Szerencsejáték Zrt, which has already undergone leadership changes amid the ongoing review..
Hungary’s new finance and economy minister András Kármán appointed Marcell Olajos as the operator’s chairman after the dismissal of Zoltán Guller in June.
Szerencsejáték Zrt holds exclusive rights to the Hungarian national lottery and also continues to dominate in sports betting in Hungary despite the country opening its online sports betting market to European Economic Area operators in 2023.
Kármán said the changes were intended to deliver on TISZA’s pledge to eliminate “political influence and unauthorised advantage” and to introduce “corruption-free and transparent management” in state enterprises. The government is also reviewing the allocation of gambling revenues with a focus on sponsorships and public funding distributed during the Fidesz era.
