The Hungarian government has ordered a review into whether to dismantle the Authority for Regulated Activities (SZTFH), which oversees gambling, tobacco and mining. The regulator's powers may be transferred to bodies under direct cabinet control.
A resolution published in the Hungarian Gazette on 31 August instructs the justice minister to prepare a report on closing SZTFH and redistributing its functions by 30 September.
The move follows a licensing scandal in Sopron, where SZTFH granted CAI Hungary Kft — a company linked to businessman István Garancsi — a 35-year casino concession running until 2061 without a public tender. The licence was issued weeks after the government pledged to review all gambling concessions in the country, some of which had been awarded by Viktor Orbán's administration shortly before elections.
SZTFH issued a statement defending its independence. The regulator said it was established by parliament under Act XXXII of 2021, accountable only to legislation and parliament rather than political bodies. It listed enforcement actions including the removal of unlicensed online operators, tens of thousands of tobacco market inspections, blocking illegal online shops and protecting minors.
Despite objections, SZTFH pledged full cooperation with the review. The regulator was created in October 2021 and employs over 400 staff. Its current president, László Nagy, was appointed in 2024 by former president Tamás Sulyok to a nine-year term.
