Hungary Removes SZTFH Concession Powers Under New Law
Hungary.- 7 October 2026 | www.zonadeazar.com Hungary has removed concession-related functions from the Supervisory Authority for Regulated Activities, SZTFH, and abolished its Concession Council under legislation that took effect on 1 October.
The reform forms part of a wider government process to restructure the authority and potentially abolish it altogether.
Law Effective From 1 October
Bill T/639 was submitted on 8 September and handled under an urgent parliamentary procedure.
Lawmakers approved the proposal on 22 September by:
- 135 votes in favour.
- 46 against.
- Six abstentions.
The legislation was published on 30 September as Act LIX of 2026 and took effect the following day.
Concession Council Abolished
The new law abolishes the Concession Council and ends the SZTFH’s concession-related duties.
From 1 October, the authority’s prior consent is no longer required for certain concession decisions.
What Changes in Concession Procedures
SZTFH approval is no longer required for processes including:
- Tenders.
- Invitations to submit offers.
- Conclusion of concession contracts.
- Amendments.
- Terminations.
The change also applies to procedures that were already under way when the legislation entered into force.
SZTFH Challenges the Interpretation
The authority issued a corrective statement following the parliamentary debate.
According to the SZTFH, it never had the power to award concessions or sign concession agreements itself.
Since October 2021, its role was to provide prior consent before the designated minister concluded, amended or terminated those contracts.
81 Approvals Since 2021
The SZTFH said it had provided prior consent on 81 occasions since October 2021.
It also stated that the current government had already sought such approval ten times before the new reform.
Casino Concessions
The authority also clarified that casino concessions awarded since 2021 were issued by the designated minister.
Decisions followed recommendations from an evaluation committee including ministry representatives and officials from the National Concession Office.
More Than 23,000 Inspections
Between 2021 and 2025, the SZTFH carried out more than 23,000 concession-related inspections.
These covered:
- Casinos.
- Online casinos.
- National tobacco shops.
- Mining activities.
The authority stressed that legal responsibility for monitoring performance under concession agreements sits with the relevant sector minister.
Transfer of Records
The SZTFH president must transfer concession-related files to the minister responsible for state assets.
The law provides a 30-day deadline from its entry into force.
The files include records covering tenders, contracts and inspections.
Government Can Reallocate Functions
The legislation allows the government to decide by decree which minister or central government body will conduct future concession tenders and manage contracts on behalf of the state.
This includes concluding, amending and terminating concession agreements.
Possible Full Abolition
The government had already announced plans to conduct a broader review of the SZTFH.
A 31 August resolution instructed the justice minister to develop a proposal for transferring the authority’s responsibilities to other state bodies.
The SZTFH employs more than 400 people and oversees gambling, tobacco, mining and other regulated activities.
No Closure Date Yet
Neither the legislation nor the government’s statements currently set a timetable for abolishing the SZTFH entirely.
For now, the authority continues to operate and retains regulatory responsibilities outside the specific area of concessions.
Next Steps or Impact
The reform represents a significant change to Hungary’s concession administration framework.
For the gambling sector, the immediate consequence is that the SZTFH will no longer provide prior consent within concession procedures.
The next stage will be determining which government bodies permanently assume those responsibilities and whether the administration proceeds with its plan to abolish the authority altogether.
Editó: @fonta
