Hungary removes gambling regulator’s concession powers in major legal change

Hungary has changed the legal framework governing state concessions after parliament approved legislation reducing the concession-related authority of the Supervisory Authority for Regulated Activities, known as SZTFH. The measure was approved on 22 September 2026 and affects the regulator’s role in concession procedures, record-keeping and prior consent. It does not, at this stage, remove SZTFH’s wider responsibility for supervising regulated gambling activity in Hungary.

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The reform comes during a broader government review of the regulator’s structure. In August, the Hungarian government ordered an assessment of SZTFH and raised the possibility of eventually abolishing the authority and reallocating its remaining responsibilities to other state bodies. No final decision on that wider restructuring had been announced when parliament passed the concession amendments.

What Did the Hungarian Parliament Change?

The legislation stems from Bill T/639, submitted to the National Assembly on 8 September 2026. According to reporting on the parliamentary decision, MPs approved the measure by 135 votes in favour, 46 against and six abstentions.

The changes remove SZTFH from several parts of Hungary’s concession system. The authority will no longer provide the prior consent previously required in certain procedures involving concession tenders, agreements, amendments and terminations.

The main changes can be summarised as follows:

• SZTFH loses its prior-consent role in relevant concession procedures.
• The Concession Council within SZTFH is abolished.
• Concession-related record-keeping duties are removed from the authority.
• Relevant documents held by SZTFH must be transferred to the finance minister within 30 days.
• The government may designate a minister or central government body to handle concession procedures.
• The designated state body may conclude, amend or terminate concession contracts on behalf of Hungary.

What Powers Did SZTFH Actually Have?

One important point is that SZTFH did not itself award state concessions. After parliament’s decision, the regulator issued a clarification explaining that its previous role primarily involved prior consent, administration and oversight within concession procedures. The power to enter into concession contracts on behalf of the state belonged to the government member designated for that purpose.

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Before and After the Reform

What Does This Mean for Hungary’s Gambling Sector?

The immediate legal effect is narrower than a full replacement of the gambling regulator. SZTFH remains responsible for regulated gambling supervision while its concession-related functions are being removed.

Hungarian casino rules illustrate why this separation is important. SZTFH states that casino gambling is treated as a state monopoly under Hungarian legislation. Casino activity may be conducted by qualifying state-controlled entities or through rights transferred by the state under a concession agreement. Operating a casino also requires an authorisation process handled under the Gambling Act and related implementing rules.

For businesses active in gambling, the most relevant short-term questions concern administrative responsibility. They include:

1. Which ministry or central body will receive each former concession function?
2. How will existing procedures be handled during the transfer period?
3. Will the government make further changes to gambling licensing rules?
4. What will happen to SZTFH’s remaining supervisory responsibilities?
5. How will Hungary address EU requirements that apply to regulatory independence in certain areas?

The September legislation answers only part of these questions. Further government decisions will be required if the planned structural reform proceeds.

A Wider Review of SZTFH Is Still Under Way

The concession vote follows a government resolution published on 31 August 2026. That resolution ordered a wider examination of SZTFH, including the legal steps that would be needed to abolish the authority and move its functions to government-directed institutions. Justice Minister Márta Görög was given until 30 September 2026 to report on the available options.

SZTFH oversees more than gambling. Its remit also includes regulated sectors such as tobacco, mining and cybersecurity. Any full reorganisation would therefore have consequences outside the betting and casino industry.

The regulator has also pointed to EU legal requirements concerning the independence of some regulatory functions. This means a future redistribution of powers may require different solutions for different areas rather than transferring every responsibility to one ministry.

Timeline of the 2026 Changes

What Comes Next?

The next issue is not the September vote itself but the government’s broader plan for SZTFH. Parliament has already removed specific concession powers, yet gambling licensing, enforcement and public regulatory functions have not automatically disappeared with that change.

Further legislation or government decrees may clarify which bodies will assume concession duties and what happens to the rest of SZTFH’s remit. Until those measures are adopted, the current gambling regulatory framework remains relevant, and the September reform should be viewed as a change to concession administration rather than a complete replacement of Hungary’s gambling supervision system.

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