A decade ago, Cyprus effected the law No. 106(i) 2012 (as revised in 2019) which addresses betting operations in the country through land-based and remote platforms. Therefore, all spοrts gaming operations are governed by the law. E-casinοs, e-pοker, and e-bingo are now legally restricted. The law establishes two categories of sports betting license:
- Class A, which governs offline operations within approved premises;
- Class B, which governs internet services.
All gambling-related operations in Cyprus are overseen by the NBA. The NBA’s duties also include investigating any complaints and suspending any licenses in connection with them, as well as reviewing applications, licensing, auditing, and overseeing offline and οnline οperators.
How to get a sports betting license?
Solely a firm with a paid-up capital of at minimum EUR 500,000 that is locally incorporated (may be a foreign entity also) and whose core business is the delivery of betting services may acquire authorization.
In addition, there must be provided a bank guarantee for EUR 550,000 from a credit institution based in Cyprus or another EU country. The bank guarantee’s validity must last for a minimum of six (6) months after the sought bookmaker’s license termination date.
A potential operator must also prove to the NBA that it satisfies the following criteria:
- That it has enough money to pay out prizes to participants.
- That it can abide by the rules in place for the safety of players;
- That it has proper bookkeeping procedures in place.
Licenses for sports betting are given out for 1 or 2 years, and they can be reissued upon request with the NBA’s consent.
Sports betting license cost
The price is EUR 30,000 for a single year and EUR 45,000 for two. The cost is due at the time of the original applicatiοn or when the betting license in Cyprus is issued again. 75% of the cost is returned in the event of rejection.
All gaming businesses, including e-gaming service providers, network operators, affiliates, white-label operators, and e-gaming software providers, are covered by the Cyprus Sports Betting License.
The licensee may conduct business anywhere in the world, pursuant to local laws.
Tax on Gaming
E-sports firms are subject to a licensing structure that requires them to pay an effective tax of only 13% on their gaming revenue – 10% indirect tax, plus 2% to Cypriot athletic organizations and an additional 1% to support responsible gaming programs.
Laws Regarding AML
- Debit/Credit Cards as well as other ways for e-payment are acceptable forms of payment for Class B.
- Online operators are not permitted to conduct cash transactions.
- Online operators are not permitted to accept a wager unless there is enough cash in the player’s accounts kept in that name to encompass the bet’s full amount.
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