Hungary’s SZTFH Reaffirms Consistent Oversight and Predictable Regulatory Environment

Hungary’s Supervisory Authority for Regulated Activities (SZTFH) has reiterated its role as an independent regulatory body, focusing on delivering consistent oversight and a predictable legal environment for sectors it supervises, including gambling. The SZTFH, founded on 1 October 2021 under Act XXXII of 2021, is accountable only to the Hungarian National Assembly and operates strictly within the bounds of law. The announcement follows the release of Government Decree 1277/2026 (VIII.31.), which was published in the 121st volume of the Hungarian Gazette on 31 August 2026.

SZTFH’s Regulatory Mandate and Market Impact

The SZTFH, established by the Hungarian legislator as an autonomous authority, has been tasked with overseeing industries designated as of strategic importance to the national economy. Since inception, its reporting obligations to the National Assembly have been fulfilled in line with statutory criteria, with its annual reports consistently accepted by the relevant parliamentary committees.

The sectors under SZTFH’s purview—which comprise mainly Hungarian-owned small and medium-sized enterprises—collectively generate annual revenues totalling several tens of thousands of billions of forints. These businesses directly employ over 50,000 Hungarian citizens. Tax and social contribution revenues derived from these sectors exceed HUF 1,000 billion per year, which plays a critical role in sustaining public services. Stability within the supervised sectors is therefore considered indispensable to national budget planning.

Gambling Enforcement and Addressing Illicit Activity

One area where SZTFH has achieved measurable results is the Hungarian gambling sector, where it has undertaken systematic action against unlicensed online operators. The authority’s interventions are designed to reinforce legal certainty and public interest, as well as to ensure the predictability of market operations (more at the regulation archive).

In other regulated sectors, such as tobacco retail, SZTFH has implemented extensive compliance operations. These have included tens of thousands of retail inspections—sometimes referred to as "trafikellenőrzések"—alongside persistent blocking of unlawful online shops. Several of these initiatives are tailored to protect minors and reinforce relevant regulations. The resulting measures have also contributed to strengthening Hungary’s framework for youth protection.

Broader Regulatory Initiatives: ESG, Mining, and Cybersecurity

SZTFH has spearheaded regulatory reforms across several domains:

• In mining and geology, the authority established a new, efficient geothermal regulatory regime.
• Regarding environmental, social, and governance (ESG) issues, SZTFH created a unique national ecosystem promoting the sustainability and long-term competitiveness of Hungarian enterprises.

In cybersecurity, Hungary—through SZTFH’s involvement—became one of the first EU member states to introduce a national-level audit framework. As of the latest official update, nearly 90% of relevant market participants successfully passed these cyber audits, affirming the model’s effectiveness.

SZTFH Legal Position and International Alignment

By statute, SZTFH is subject only to national legal provisions, with exclusive reporting duty to the National Assembly. The authority’s structure and remit align with EU requirements, as several tasks mandated by European law must be fulfilled by competent regulatory entities independent of central government, and endowed with legislative authority. Within the Hungarian constitutional framework, SZTFH’s status ensures compliance with this EU legal architecture.

Staffed by more than 400 professionals with internationally recognised sectoral expertise, SZTFH integrates seamlessly into Hungary’s public administration system. The agency is also regarded as a responsive actor in international regulatory cooperation.

“SZTFH performs its tasks at a consistently high professional standard, in a transparent and predictable manner within the parameters set by law, always with regard to public interest, legal security, and the long-term interests of the Hungarian economy.” — official SZTFH statement, 1 September 2026

Cooperation and Next Steps Following Government Decree 1277/2026

SZTFH confirms full cooperation with the minister designated under Government Decree 1277/2026 (VIII.31.) to ensure effective legal reviews. This ongoing collaboration aims to deliver all mandated reviews in strict accordance with applicable statutes, maintaining legal certainty and sectoral stability throughout Hungary’s regulated activities.

Outlook for Hungary’s Supervised Sectors

By underscoring its track record and statutory independence, SZTFH positions itself as a guarantor of consistent regulatory responses and reliability for stakeholders—including those in gambling and adjacent markets. The authority will continue to develop frameworks supporting business activity, social welfare, and compliance with Hungarian and EU law, while responding to government mandates with transparent cooperation.