🥊 Hungary🇭🇺: the government is considering abolishing the SZTFH regulator

🥊 Hungary🇭🇺: the government is considering abolishing the SZTFH regulator

Prime Minister Magyar, with the Government's approval, instructed the Ministry of Justice to prepare a report on the possibility of abolishing the Supervisory Authority of Regulated Activities. (Or on the impossibility❓)

🔹 The reason for challenging the regulator was a suspicion of corruption: the Authority extended a casino concession in Sopron to operator CAI Hungary Kft. for 35 years (until 2061) without an open tender. Formally, no law was violated: the authority is entitled to renew contracts with so-called “reliable operators” without a tender.

🔸 However, political considerations also came into play: the applicant company is affiliated with billionaire István Garancsi, who was part of former Prime Minister Orbán's inner circle and is suspected of benefiting from public contracts. When asked why Garancsi's company received the concession under these conditions, the regulator stated that issuing and extending licenses fall entirely within its authority and that it is an independent body reporting directly to Parliament.

🔺 The issue is that the Government actually does not have the authority to abolish the regulator, precisely for the reasons stated in its response. The Authority operates as a state budgetary body, and its head can only be removed from office by the President of Hungary and only under exceptional circumstances, such as a conflict of interest or a court decision.

✏️ Reference: the Supervisory Authority of Regulated Activities (Szabályozott Tevékenységek Felügyeleti Hatósága, or SZTFH) is a regulatory body independent of the Government, established under Act XXXII of 2021 on the Supervisory Authority of Regulated Activities. It began operating in October 2021. Its responsibilities include:

🟢 gambling: supervision, licensing, inspections and regulation of gambling establishments; consumer protection, advertising and sanctions;

🟢 tobacco products trade: concessions and supervision;

🟢 mining and geology;

🟢 concession agreements;

🟢 the bailiff service.

After the SZTFH began operating, 1.14 million players were registered in the country.

✏️ Context: as of January 1, 2023, an amendment to Act XXXIV of 1991 on the Organization of Gambling Activities entered into force. Market participants were given the opportunity to apply to the SZTFH for authorization to organize gambling activities. This brought an end to the state operator's monopoly.

🟢 Operators registered in the European Economic Area may organize remote gambling under an SZTFH license.

🟢 To apply, EEA operators must register an authorized representative in Hungary who will act during the licensing procedure.

🟢 To obtain a license, the applicant, beneficial owner and management of the organization must undergo a personal suitability assessment in accordance with the Act on the Prevention and Suppression of Money Laundering and Terrorist Financing, submitting the required documents to the SZTFH.

The authorities state that if the regulator is abolished, its powers will be transferred to other government agencies.

#news #Europe #gambling #background

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