Key Moments:
- Hungary’s government has started a review to assess the possible dissolution of the Supervisory Authority for Regulated Activities (SZTFH)
- A 35-year Sopron casino concession granted to CAI Hungary Kft without public tender has sparked scrutiny
- SZTFH has defended its independence, enforcement record, and pledged full cooperation with the government review
Government Initiates Review of SZTFH
The Hungarian government has launched a formal review to determine whether the Supervisory Authority for Regulated Activities (SZTFH) should be disbanded. Its duties could then move to ministries under direct state control. A resolution published in the Hungarian Gazette on August 31 instructed the justice minister to assess the proposal. The minister must deliver a report by September 30.
Licensing Decision Drives Scrutiny
The review follows controversy over SZTFH’s decision to grant CAI Hungary Kft a 35-year right to operate the Sopron casino until 2061. The company is linked to István Garancsi. Notably, the casino license was awarded without a public tender.
The timing of the concession also fueled criticism. The government had announced plans to reassess all casino contracts in Hungary only weeks earlier. Many of those contracts had been finalized during the final months of the previous Viktor Orbán administration.
SZTFH Response and Declaration of Independence
Addressing concerns regarding the review, the Supervisory Authority for Regulated Activities (SZTFH) defended its track record and rejected allegations of political involvement, according to a NEXT.io report.
In an official statement, SZTFH said Parliament established the authority under Act XXXII of 2021. The regulator also stressed that lawmakers hold it accountable for its operations.
“The SZTFH is an independent regulatory body established by the Parliament… subject only to legislation in terms of its activities and is solely accountable to the parliament for its operations,” the authority said.
The regulator cited its successful enforcement actions as evidence of its independence. It highlighted efforts to close illegal online gambling platforms and enhance protection for minors in the tobacco sector. According to SZTFH, these actions included tens of thousands of traffic inspections and ongoing regulatory enforcement. The authority also blocked illegal webshops.
While rejecting the criticism, SZTFH confirmed it will support the government’s legal review as required. It said it would cooperate fully with the minister designated in the Government Resolution. The authority will also take the applicable legal environment into account during the review.
Timeline Overview
| Date | Event |
|---|---|
| August 31 | Resolution for review of SZTFH published in Hungarian Gazette |
| By September 30 | Justice minister to deliver report on feasibility of dissolving SZTFH |
| Until 2061 | CAI Hungary Kft holds the 35-year Sopron casino concession |
- Author
Daniel Williams
