Gaming & Gambling License in Cyprus

Gaming and Gambling Regulation in Cyprus

The regulation of betting and gambling activities in Cyprus is governed by the Betting Law of 2019 (Law 37(I)/2019), which established a comprehensive regulatory framework for both land-based and online betting operations. The law created the National Betting Authority (NBA) as the independent regulatory body responsible for licensing, supervising, and enforcing compliance within the betting sector.

The regulatory framework aims to protect consumers, prevent problem gambling, combat money laundering and fraud, and ensure the integrity of sporting events. Cyprus’s approach strikes a balance between fostering a competitive and attractive market for licensed operators while maintaining rigorous standards of player protection and responsible gaming.

Types of Licenses

Class A License – Land-Based Betting

A Class A license authorises the holder to accept bets at physical premises (betting shops) located in Cyprus. Key features include:

• The operator must maintain licensed premises that comply with the NBA’s technical and physical requirements.
• Betting is permitted on sporting events, horse racing, and other events approved by the NBA.
• A maximum of 50 physical betting shops per Class A licensee is currently allowed under the regulations.
• All betting terminals and equipment must be certified and connected to the NBA’s central monitoring system.

Class B License – Online Betting

A Class B license authorises the holder to offer online betting services to customers in Cyprus through digital platforms. Key features include:

• The operator must provide online betting services through a licensed and certified platform.
• Online betting is permitted on sporting events, virtual events, and other categories approved by the NBA.
• The platform must incorporate robust player identification and verification systems.
• All online systems must be certified by accredited testing laboratories and connected to the NBA’s regulatory systems.

Casino Licensing

Casino operations in Cyprus are regulated separately under the Casino Law of 2015 (Law 124(I)/2015), which granted an exclusive integrated casino resort license. The casino regulatory framework is distinct from the betting regulatory framework overseen by the NBA.

Eligibility and Requirements

Corporate Structure

Applicants must be legal entities incorporated in Cyprus or in an EU/EEA member state with a registered branch in Cyprus. The corporate structure must be transparent, and the NBA must be able to identify all direct and indirect shareholders, ultimate beneficial owners (UBOs), and persons with significant influence over the business.

Financial Requirements

Applicants must demonstrate sufficient financial resources to operate a betting business. This includes:

• Minimum share capital as specified in the NBA’s guidelines (varies by license class).
• A bank guarantee or equivalent security to cover player funds and potential liabilities.
• Audited financial statements or, for new entities, a detailed financial plan demonstrating viability.
• Evidence of the source of funds for the initial investment.

Technical Requirements

The betting platform and systems must meet stringent technical standards, including:

• Certification by an accredited independent testing laboratory (e.g., BMM Testlabs, GLI, eCOGRA).
• Secure hosting infrastructure compliant with ISO 27001 or equivalent standards.
• Real-time data connectivity to the NBA’s Central Monitoring System (CMS).
• Geolocation technology to verify that players are located within permitted jurisdictions.
• Random Number Generator (RNG) certification for virtual events.

Fit and Proper Assessment

All directors, senior managers, qualifying shareholders, and key personnel must satisfy the NBA’s fit-and-proper criteria. This involves background checks, criminal record verification, financial integrity assessments, and an evaluation of their professional competence and experience in the gaming industry.

Application Process

1. Pre-application phase – Engage with the NBA to understand the specific requirements, prepare the corporate structure, and begin technical preparations.
2. Application submission – Submit the formal application form together with all required documentation, including the corporate and ownership structure, business plan, technical specifications, compliance framework, and fit-and-proper documentation.
3. Due diligence and review – The NBA conducts a thorough review including background checks on all relevant individuals, evaluation of the technical platform, and assessment of the business plan and financial projections.
4. Technical testing – The betting platform undergoes independent testing and certification to ensure compliance with the NBA’s technical standards.
5. Decision – The NBA Board makes the licensing decision. Successful applicants receive the license subject to any conditions imposed.
6. Go-live – After license issuance, the operator completes final technical integration with the CMS and commences operations.

Responsible Gaming Obligations

Licensed operators must implement comprehensive responsible gaming measures, including:

• Self-exclusion mechanisms – Allow players to voluntarily exclude themselves from betting for defined periods.
• Deposit, loss, and session limits – Provide tools for players to set personal limits on their betting activity.
• Age verification – Verify that all players are over 18 years of age before allowing them to place bets.
• Problem gambling awareness – Display information about responsible gambling and provide links to support organisations.
• Marketing restrictions – Comply with advertising standards that prohibit targeting minors and vulnerable persons.

AML/CFT Compliance

Betting operators are designated as obliged entities under the Prevention and Suppression of Money Laundering Activities Laws. They must implement a full AML/CFT compliance programme including customer due diligence, ongoing monitoring of transactions, suspicious activity reporting to MOKAS (the Cyprus Financial Intelligence Unit), record-keeping, and staff training. A dedicated AML Compliance Officer must be appointed and reported to the NBA.

Taxation of Betting Operators

Licensed betting operators in Cyprus are subject to the standard corporate tax rate of 15% on their profits. Additionally, a betting duty is imposed on the operator’s gross gaming revenue (GGR) at rates specified in the Betting Law. The specific duty rate and its calculation basis are determined by the NBA and the Ministry of Finance.