Hungary Strips Gambling Authority of Power: TISZA Government Targets Corruption

A new political wind is blowing in Hungary, shaking the foundations of the country's gambling regulations. The TISZA government, elected in April 2026, pushed through a far-reaching restructuring in Parliament on Friday, October 2. With a clear majority of 135 votes in favor, 46 against, and six abstentions, it was decided to drastically reduce the powers of the Supervisory Authority for Regulated Activities (SZTFH). In particular, the authority's Concessions Council is facing dissolution, marking the end of an era in which this institution held almost unrestricted power over licenses for tobacco, mining, and gambling.

This radical step is part of a broader anti-corruption campaign led by Finance Minister András Kármán. The government accuses the SZTFH, founded in 2021, of having pursued a policy of cronyism under the old Fidesz leadership of Viktor Orbán. The awarding of casino concessions is the primary focus of the investigation. Justice Minister Márta Görög has already been tasked with assessing the dissolution of the authority and the transfer of its functions to bodies directly controlled by the government. The corresponding report was due by September 30, highlighting the enormous speed of the political process.

Numbers and facts

The scope of previous concession awards becomes clear when looking at the details. In cities such as Szeged, Győr, Miskolc, Pécs, Debrecen, and Sopron, contracts were concluded with terms of up to 35 years. A particularly extreme example is the concession for Sopron, which is linked to CAI Hungary Kft and reportedly runs until 2061. Such long-term commitments are a thorn in the new government's side, as they prevent competition and effectively close the market to international providers.

Hungary's economic situation is increasing the pressure on the sector. Since 2023, the country's economic development has lagged behind the rest of the European Union. Finance Minister Kármán sees the reform of the gambling market as a necessary step to regain the trust of international investors. Bill T/639, submitted on September 8, removes the need for prior SZTFH consent for tenders or contract amendments. This strips the authority of its most important control instrument in licensing.

Background

The SZTFH is vehemently defending itself against being portrayed as a scapegoat for economic failures. In a statement on the day of the vote, the authority emphasized that it never had the power to award concessions directly, but only performed a supervisory and consent function. The right to award concessions lies solely with the respective government. Nevertheless, criticism of the lack of transparency remains. There were already significant problems with the reform of online gambling in 2022 and 2023. The European Court of Justice (ECJ) ruled at the time that the Hungarian monopoly of the state-owned Szerencsejáték Zrt violated EU law. Although changes were promised, international firms stayed away from the market as conditions continued to massively favor the state provider.

"We must reinstall trust in Hungary’s economy and strip political influence and cronyism from management." - András Kármán, Finance Minister

Kármán has already overhauled the board of Szerencsejáték Zrt this summer. However, the complete liberalization of the market remains uncertain. While the TISZA government calls for greater accountability, it is unclear whether it actually seeks free competition for private online casinos or simply wants to replace the influence of the old elites with its own structures.

Why it matters for German players

For German players, the situation in Hungary serves primarily as a warning signal regarding legal certainty in Europe. While Hungary ignored or only pro-forma implemented EU rulings for years, Germany has provided a clear legal framework since the State Treaty on Gambling 2021 (GlüStV 2021). German customers should ensure they only play with providers listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). These licenses guarantee protection measures that could currently be at risk in Hungary.

In Germany, strict rules such as the monthly deposit limit of 1,000 euros via the LUGAS system and the stake limit of 1 euro per spin for online slots are firmly anchored. Such player protection measures are often secondary in a politically unstable environment like the one currently emerging in Hungary. Those playing from Germany are legally protected by GGL supervision, while Hungarian licenses do not currently provide a reliable basis for cross-border play.

What it means for GGL-licensed casinos

For operators with a GGL license, the Hungarian case illustrates the value of a stable regulatory environment. While concessions in Hungary run until 2061 under suspicion of corruption, German providers must undergo strict annual audits. The GGL ensures fair competition and prevents monopolies like the one Szerencsejáték Zrt continues to hold in Hungary. International companies deterred by Hungarian intransparency find strict but predictable conditions in the German market. The current development in Hungary could lead to serious European providers concentrating their investments even more on markets like Germany, where the rule of law and EU compliance are maintained.