Regulator: SZTFH

Introduction: who are SZTFH and why are they to the market

SZTFH (Supervisory Authority for Regulatory Affairs/Szabályozott Tevékenységek Felügyeleti Hatósága) is the central supervisory authority overseeing regulated industries, including gambling: it approves rules, issues permits, conducts checks, applies coercive measures and publishes market reports. The body communicates directly with government committees and positions its mission as ensuring "cleanliness of markets" and consumer protection.

Jurisdiction and Responsibility

Extraterritorial action. Hungarian law applies to any gambling services available from Hungary (including online services hosted abroad, but open to Hungarian IPs). This is the key to blocking and other measures against unlicensed sites.

Full supervision circuit. SZTFH conducts licensing, monitoring compliance with KYC/AML and Responsible Gaming requirements, initiates blocking of illegal services and payment channels, and also communicates technical performance standards to operators.

Reform 2022-2023: what has changed and who is allowed to enter the market

From January 1, 2023, Hungary opened a competitive regime for remote betting (online sports betting): operators from the EEA, subject to strict conditions, can obtain a Hungarian license. At the same time, online casinos remain the privilege of land casino concession holders - the segment is not liberalized.

• proven experience in licensed online gambling for at least 5 years in the EEA;
• capital/collateral and other financial thresholds (including a large one-time fee for a license and collateral; in practice, the levels of HUF 600 million and other financial requirements are mentioned);
• a ban on admitting those who have worked for Hungarian clients without a local license in recent years;
• demonstration of AML/KYC, RG and technical readiness procedures.

SZTFH technical orders in 2023

To launch a new model, the regulator issued decrees specifying technological and procedural requirements for remote operators: from responsible game interfaces and payment security to protocols for interacting with payment institutions. These documents fine-tuned the editing to the Gambling Act and eliminated "sharp corners" in the practical application of the law.

Enforcement tools and coordination with other regulators

Blocking and restricting payment flows in relation to unlicensed sites is a standard part of the arsenal.

Joint campaigns: SZTFH acts in conjunction with GVH (antimonopoly authority) and other departments when cleaning up illegal sites and protecting consumers.

Communication with the market: press reports and briefings on the implementation of the 2023 regime, including statistics on supervised industries and clarifications on the application process.

What is expected from the licensee: compliance minimum

1. Responsible play (RG): deposit/time limits, timeouts, self-exclusion, age control (18 +), transparent risk communication. Standards are enshrined in both law and SZTFH decrees.

2. KYC/AML: verification of identity/age, transaction monitoring, reaction to risk scenarios, cooperation with payment providers authorized by the central bank.

3. Technical circuit: stability of live updates, financial and information security, reporting and storage of logs, readiness for inspections (audits) and incident reporting.

Market Practice: How SZTFH Affects Competition

The change in the model has led to the fact that the "value of the license" has grown: it is important not so much the promo as the speed of payments, the stability of live and the maturity of RG - SZTFH looks at this during checks and this is what raises the "entry threshold" for applicants.

Extraterritoriality made it possible to limit the "gray sector" and level the conditions of competition for local and international players working "in the white field."

What is important for the player to know

Play with licensed operators who have passed SZTFH control: this means verification, self-control tools, clear rules of payments and treatment.

Unlicensed sites may be blocked and do not provide a comparable level of protection for funds and personal data.

Short memo (for editorial sidebar)

Regulator: SZTFH - supervision, licensing, technical standards and coercion.

The law acts extraterritorially (including foreign sites accessible from Hungary).

FROM 01. 01. 2023, the licensing regime for remote rates for EEA operators was opened; online casinos are still tied to a land concession.

The 2023 technical orders are a practical "road map" for launching the market.

Joint sweeps of the illegal online segment with GVH.

SZTFH builds a rigid but predictable framework in Hungary: license + extraterritorial control + technical standards + RG/KYC. For operators, this means a high threshold for product quality and compliance; for players - a mostly safe, transparent environment. Reform 2022-2023. did not "weaken" control, but made it more technological and targeted: the market is open to those who are ready to play by the rules and invest in a sustainable service.