Introduction

Cyprus is truly a European gambling haven. Its favourable gambling tax (10% plus 3% charitable contribution) and the cost-efficient gambling licence fees (just €45 000 for two years) have rendered the island truly irresistible to prospective gambling operators.

In addition, it is perfectly acceptable for a Cyprus company to provide betting services in any third country subject to the legal framework of the county of residence of the intended recipients of such services.

Economou & Co LLC reviews the main points of interest that a prospective gambling operator must have in mind before providing services in Cyprus.

Legislative Framework

The main legislation regulating betting activities is the Betting Law of 2012, which updated pre-established rules and guidelines and introduced new ones.

The Betting Law 2012 regulates both land-based and online sports betting activities and services.

The supervisory authority for all gambling and betting activities is the National Betting Authority (NBA). All gambling operators who wish to operate in Cyprus must apply to the NBA for a license.

Permissible Gambling

In effect, online gambling is permissible only to the extent that it refers to sports betting. All other types of online betting are prohibited.

The following categories of gambling are available within specified physical premises:

• Poker – only in licenced casinos
• Casino games – only in licensed casinos
• Bingo – only in licensed land-based premises

Licence Requirements

There are two forms of licence available:

• Class A – regulating land betting services
• Class B – regulating online betting services

An application for a licence can only be submitted by a company with a share capital of at least EUR 500,000 established in Cyprus or with a branch in Cyprus (overseas company) with its main activity being the provision of betting services.

A prospective gambling operator must satisfy the NBA that it fulfils the following cumulative requirements:

• That it has sufficient resources to pay the players’ winnings.
• That it has adequate accounting systems.
• That it can comply with regulations for the protection of players.

It should be noted that there no additional restrictions imposed to mobile gambling in comparison with any other form of interactive gambling.

Our services

Economou & Co LLC is a trusted leader in obtaining i-gaming licences, advising on licensing standards, preparing corporate policies and employment contracts.

If you or your clients would like to discuss the Cyprus Headquartering scheme, please contact us by telephone or email for a complimentary consultation.