In Hungary, Parliament is moving towards the reorganisation of the governance of gambling licences, privileges and concessions led by the TISZA government.
On Friday, 2 October, Parliament approved to reduce or limit the powers of the Supervisory Authority for Regulated Activities (SZTFH) and to dismantle its Concessions Council.
The move points towards a review of the under-scrutiny agency, and a possible termination of its authoritative powers on gaming licences, a measure sought by PM Péter Magyar and Finance Minister András Kármán.
The measure passed with 135 votes in favour, 46 against and six abstentions, primarily passed by TISZA members and its commanding two-thirds supermajority in Hungary’s National Assembly.
Established in 2021, SZTFH oversees gambling alongside tobacco, mining, cybersecurity and other regulated activities. Its wide remit has placed it within the TISZA government’s broader examination of state institutions.
The decision brings forward growing speculation of a broader institutional overhaul of gambling licences. The review of the duties of the SZTFH, an agency that faces backlash of cronyism over its handling of gaming concessions under the Fidesz government of Viktor Orban.
The changes stem from Bill T/639, submitted by the government on 8 September, which sought to remove SZTFH’s functions relating to concession agreements and dissolve the Concession Council whose advisors were sanctioned by Fidesz.
Under the proposed arrangements, SZTFH’s prior consent would no longer be required for concession tenders, invitations to submit offers, or the conclusion, amendment and termination of concession contracts.
TISZA will appoint ministers to review how SZTFH granted concessions for key gaming contracts, in which relevant parties have been given 30-day window to present terms of ownerships and management structures.
The review is a key element of the ‘breaking corruption’ campaign led by FM András Kármán, taken as a pledge by TISZA to re-install trust in Hungary’s economy, which has lagged behind all EU member states since 2023.
SZTFH has challenged how its role has been characterised during the reform process, stressing that it never possessed the authority to award concessions directly, which belongs to the designated government.
The regulator’s involvement instead covered prior consent and associated oversight, a distinction it reiterated in a corrective statement published on the day of the parliamentary vote. Former officials have complained to the media that TISZA is making it a scapegoat for Hungary’s economic woes.
Spotlight on casino contracts
The parliamentary changes follow a government resolution published in the Hungarian Gazette on 31 August, ordering an examination of SZTFH’s operations and the legislation underpinning its responsibilities.
Justice Minister Márta Görög was tasked with assessing how the authority could be abolished and its functions transferred to bodies under direct government control, with a reporting deadline of 30 September.
Casino concessions have become a particular focus of scrutiny, including agreements covering Szeged, Győr, Miskolc, Pécs, Debrecen and Sopron. Some contracts extend for up to 35 years, with the Sopron concession linked to CAI Hungary Kft reportedly running until 2061.
In its earlier response to the institutional review, SZTFH defended its status as an independent regulatory body accountable to Parliament. It highlighted enforcement against illegal online gambling and measures protecting minors in the tobacco market, while pledging to cooperate with the government’s legal assessment.
Szerencsejáték Zrt remains the Big Fish
SZTFH is one of many agencies that has come under the direct scrutiny of TISZA as the new sheriff in town. Other agencies under scrutiny include State Media (national news), Defence Department, the Chief Prosecutor’s Office and Hungarian Energy. Furthermore, even Councils and advisories reporting to the Finance Ministry of Karman are due for inspection.
The regulator now faces scrutiny over its botched handling of Hungary’s online gambling and sports betting reforms of 2022–2023.
A review of Hungary’s Gambling Act was mandated by the European Court of Justice (ECEJ) which deemed that Hungary held an online monopoly granted to Szerencsejáték Zrt. The changes promised greater competition but failed to attract international firms amid concerns that the terms still favoured Szerencsejáték Zrt.
TISZA has already moved against the state-owned lottery and betting firm’s leadership. This summer, Kármán ordered a sweeping board overhaul, pledging to strip political influence and cronyism from its management.
Yet changing the board is easier than changing the business. Szerencsejáték Zrt remains a major source of state income, while lottery revenues support cultural, arts and heritage projects across Hungary. Any overhaul therefore carries political consequences well beyond the betting market.
For now, TISZA, Prime Minister Péter Magyar and Kármán have made no clear commitment to further liberalising online gambling. The government wants tighter governance and greater accountability. Whether it also wants more competition remains an open question.
The wider question remains how Hungary will allocate regulatory responsibilities if the authority is dismantled, and what institutional arrangements will replace its current supervisory structure.
