Cyprus is a small island in the Mediterranean, with a population of up to one and a half million people. A small area with the rapid development of the hotel, restaurant, and gambling businesses in this country.
Actually, gambling and betting in Cyprus will be the topic of our conversation in this article. In particular:
- How betting and gambling niches feel in Cyprus.
- Or just get a license for gambling activities on the island.
- What difficulties can gambling business owners experience?
- How LCWork can help.
Get ready to experience the Mediterranean nature of gambling.
The State of the Gambling Industry in Cyprus in 2022
All gambling activities of the gambling club are regulated by the Casino Law, which came into force in 2015. This is despite the fact that by that time the church actively opposed the adoption of this law.
Land-based casinos are subject to a monopoly, and the games themselves are subject to several regulatory bodies at once, namely:
- National Money Rate Authority (NBA). This body considers applications for the opening of gaming clubs, performs audits and control of gaming operators, and issues licenses.
- Cyprus Casino, Betting and Gaming Supervision Commission (NGCSC). This is a regulator to which the entire vertical of gambling is subject, and a monopoly operates on land-based gambling establishments.
Unlike betting, gambling has more restrictions and conventions. For example, you cannot play online poker or blackjack in Cyprus. But you can take risks in card games by visiting a special ground-based institution, although there are very few of them here. Therefore, the gambling vertical here is in a strict framework.
Gambling Licenses in Cyprus
Along with the Law on Gambling, another law on the issuance of a license appeared in Cyprus. Now, if you want to open an iGaming business in Cyprus, you must register a legal entity and obtain a license, and depending on how you will provide services (online or offline), you need the appropriate type of permission:
- Class A. For land-based establishments operating in Cyprus.
- Class B. For online betting.
Both types of licenses are suitable for entertainment, while owners of land-based gambling establishments can obtain a Class A license. And if a company accepts bets without a license, it immediately receives a fine.
Requirements for Obtaining Licenses in Cyprus
The Cypriot jurisdiction is considered one of the most attractive due to:
- No convictions.
- Presence of registered capital.
- Partnership with a Cypriot company (or physical presence of the office).
At the same time, we have to note that only sports betting is currently allowed in the country, so all the standards and requirements for obtaining a license relate primarily to the owners of betting companies.
Betting Vertical in Cyprus
The entire sports betting vertical has been regulated by the Betting Law since 2019. She also submits to the NBA, and on the betting itself, in turn, has no monopoly. In addition, it is the only vertical available both online and offline.
This formed a special trend in betting, and the income of this industry began to grow rapidly. So, over the past year, betting has received more than €31 million, while the gambling market is in stagnation. Today there are about 12 bookmakers on the island.
If you want to become a sports betting operator, you need to apply for a license:
- A license for a year will cost €30,000.
- A two-year license will cost you €45,000.
In doing so, you need to post a security deposit of €500,000 and you must have the same amount of paid-up share capital.
Please note that licensees can only fund their accounts with non-cash payments. This means that you cannot deposit cash.
At the same time, the owners of betting companies must pay a monthly tax (10% of the actual tax and 3% of the administrative fee).
Beware the Fines
Betting shop operators have many responsibilities. First and foremost, you must adhere to a set of NBA Responsible Gaming Principles:
- You can not offer casino games — for this you can get a fine of € 1 million or imprisonment.
- You must offer players a means of self-limiting entertainment (such as limiting losses or limiting deposits, etc.).
- Your sportsbook advertising must be socially responsible and not affect underage audiences.
In addition, persons under the age of minors should not be allowed to play games.
For violations, the NBA can block your site, impose a fine of up to €200,000 or €300,000 (for unlicensed) or revoke your license altogether. In the most serious cases, you can get a prison term of up to three years, and if you do not have a license, then up to five.
Therefore, if you intend to open a gambling business in Cyprus, you will have to take into account all these nuances. You may also need cool specialists with whom you can offer high-quality gambling entertainment and services. LCWork helps you find great employees and makes the process simple and efficient.