The Hungarian Government is considering abolishing the Supervisory Authority for Regulated Activities (SZTFH) and transferring its responsibilities to Government-controlled bodies.
The SZTFH currently regulates and supervises Hungary’s gambling market, including online casinos and takes action against illegal gambling. The regulator also covers other industries such as the tobacco trade, mining, petroleum, natural gas and geothermal energy extraction activities.
A Government resolution published in the Official Gazette states that both an operational review of the regulator and an assessment of the relevant legal environment are required before any changes can be made.
The Government has instructed the Minister of Justice to assess whether the proposed changes are feasible and to present a report to the cabinet by September 30.
The SZTFH officially responded to the Government's plans, emphasising independence and recent achievements, while indicating that it would cooperate with the appointed minister.
The regulator further noted that EU regulations require regulatory authorities to function independently of the Government in several areas.
In May, Hungary’s new Government signalled changes to the country’s gambling sector, criticising the former Orban administration over various issues in regulation and transparency.
Among significant changes already introduced are stricter anti-money laundering regulations for gambling operators, mandating more extensive risk assessments.
Furthermore, leadership at the state-owned operator Szerencsejáték Zrt has been reshuffled. Local media previously reported allegations that the operator’s board included members appointed due to their political connections under the former Government.
Earlier, Szerencsejáték Zrt was also criticised during parliamentary hearings for allegedly using revenues for “propaganda purposes.”
Hungary also tightened restrictions on prediction market platform Polymarket earlier this year, citing concerns related to unlicensed gambling operations
