Overview
Cyprus Online Gaming Overview
Regulated Market
In general, the regulation of gambling service in Cyprus is divided into two categories, land-based and online betting.
Online betting is regulated by the Law on Betting of 2019 (the “Betting Law”). Online betting is defined in Cypriot law as being carried out remotely using electronic means through telecommunications channels including the internet, telephone, television and any means of electronic or other technology.
The National Betting Authority of Cyprus (the “NBA”) is the body responsible for issuing the required licence to a provider of online betting services, referred to as a Class B licence. A holder of a Class B licence can provide online betting services (as defined above) excluding limited benefit slot machines, online casino games and online horserace betting. In the course and for the purposes of participating in online betting, each player must register by setting up an online user account.
Provision of services of and taking part in online gambling such as online casinos, poker and exchange betting is generally prohibited with the exception of online sports betting. Cyprus is a popular destination for online sports betting companies that are looking to expand.
Horse race betting is under the exclusive jurisdiction of the Nicosia Race Club. Nicosia Race Club authorises Horse Racing Betting Agents throughout Cyprus to accept and pay bets on its behalf. A large variety of bets are allowed.
Conducting or providing any services in relation to dog racing is prohibited and constitutes a criminal offense punishable by imprisonment and/or a fine.
The legal gambling age is 18, however, only people over the age of 21 are allowed to enter the integrated casino resort in Limassol and its satellite casinos in other cities.
Market Size
The NBA has announced financial figures for the first quarter of 2024. Distinction is made between holders of a Class A licence (land-based betting) and holders of a Class B licence (online betting).
For both Class A and Class B together, the gross gaming revenue (“GGR”) has increased by 20% in comparison to the first quarter of 2023 and by 45% to that of 2022.
Online GGR reached just over EURO 236 million for the quarter, while land-based reached a total of around EURO 84 million. In total across both sectors in the quarter, GGR reached EURO 321 million.
The number of illegal websites providing gambling services has increased by 5%, compared to the first quarter of 2023. Specifically, 963 illegal websites were added to the relevant list from the fourth quarter of 2023. It is worth noting that the list of illegal websites providing betting services is comprised of a total of 20,036 websites (https://nba.gov.cy/wp-content/uploads/BlockingListLatest.txt) .
Competitive Landscape
There are only 6 bookmakers who are holders of a Class A licence (land-based betting). However, as of July 2024 these bookmakers have 166 authorised agents throughout Cyprus. There are 14 holders of a Class B licence (online betting). A full list of bookmakers and their agents can be found on the NBA website: https://nba.gov.cy/en/regulated-entities/registers/
Top Key Attractions and Challenges
Attractions
- Possible to operate online betting to customers outside Cyprus.
- Popular hub and a service centre for offshore operators (particularly Curacao) because of EU membership, banking/payment agents and low corporate tax.
- Low licence fees and gaming tax.
- Relatively light touch compliance.
- Sports betting is specifically licensed.
- Betting in Cyprus is very popular among the Cypriot population.
- Relatively small market which has room for expansion.
- Dispute resolution in Cyprus has recently seen significant amendments aimed at improving the speed of litigation and dispute resolution of new cases.
- Relatively low litigation costs compared to other jurisdictions such as England.
- Α Commercial Court has been set up by legislation but has yet to initiate its workings.
Challenges
- High Minimum Guarantee and paid-up share capital up-front costs.
- Only online sports betting is licensed, with other online gambling activities such as casino being prohibited.
- A large amount of older backlog cases is still pending for adjudication before Cypriot Courts.
Products
Licensing & Regulation
Cyprus Online Gaming Licensing & Regulation
Licence Triggers
The provision of any gambling services, either land-based or online requires a licence from the National Betting Authority of Cyprus (the “NBA”).
Array/Type of Licences
The Betting Law of 2019 (the “Betting Law”), repeals and replaces the previous regime, and allows the issuance of two Classes of licences i.e. Class A; where the bets are conducted in a...
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Products
Enforcement
Cyprus Online Gaming Enforcement
Regulatory Body
There are two relevant regulatory bodies operating in the Republic of Cyprus: the National Betting Authority (the “NBA”) and the Cyprus Gaming and Casino Supervision Commission (the “CCC”).
The NBA was established pursuant to the Betting Law of 2019 (Law 37(I)/2019) (the “Betting Law”). It constitutes an independent administrative authority which has financial independence and autonomy.
The CCC...
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Products
Marketing
Cyprus Online Gaming Marketing
Cyprus Online Gaming Marketing
Advertising of gambling opportunities is permitted in Cyprus, to the extent that the nature and extent of such advertising is limited to the true and accurate representation of the services provided by licensed persons. However, the Betting Law of 2019 prohibits certain forms of advertising.
Furthermore, the National Betting Authority has published a Practical Guide Code...
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Products
Fees
Cyprus Online Gaming Fees
Cyprus Online Gaming Fees
The licence application fees are low. However, the minimum bank guarantee required is quite high.
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Taxes
Cyprus Online Gaming Taxes
With regards to taxation, the licenced entity/person must pay on an annual basis a betting tax to the Republic of Cyprus and a contribution to the National Betting Authority (the “NBA”). A 10% betting tax on net revenue (GGR) is payable to the Republic of Cyprus. Furthermore, a 3% tax on net revenue (GGR) is payable...
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Future Outlook
Cyprus Online Gaming Future Outlook
There are no significant changes or developments that are expected imminently in relation to the online market.
In respect of the applicable legislative and regulatory framework governing gambling activities in Cyprus, the enactment of the Betting Law of 2019 constituted the most notable development of recent years.
Lottery regulation which will include bingo games is...
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Products
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Legal Expert
Michael Kyprianou & Co LLC
Expert Contributor: Yiannis Zavros
E-mail: Yiannis Zavros
Contact Number: 00357 22447777
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