Cyprus gambling license. Cyprus remains a world trade center in which the control and regulation of Forex is carried out at the legislative level. Cyprus legislation may provide tax non-residents with a 0% dividend tax.
The current Betting Law 2012 – Law 106 (1) / 2012 specifies the legal basis for the activities of betting operators and bookmakers. The National Bookmaker Authority (NBO) monitors the activities of bookmakers in Cyprus – online betting by gaming operators.
There are licenses of the following types:
- class A – regulates bets on sports games. Bookmakers have a license of this class. All bets are accepted except for horse racing. They don’t work in the virtual world.
- class B – regulates the online activities of bookmakers. Bookmakers accept virtual reality sports betting. The exception is slot machines, lotteries, online casinos.
Conditions for applying for a license
The application procedure for a Class A or Class B license has a number of requirements.
- The applicant is required to own shares registered in Cyprus.
- It is necessary to have a company on the island whose main activity is betting. If the company is registered abroad, it is possible to create a branch of the foreign company in Cyprus or enter into a partnership with a Cyprus company.
However, in this case, the applicant must have a share capital of at least EUR 500,000. The minimum capital requirement may apply to both Cypriot and foreign companies.
- The term of the guarantee for deposits in a bank in Cyprus or any other state (compulsory EU membership) in the amount of EUR 550,000 is valid for six months after obtaining a license.
- High solvency for payments to players.
- The organization must have a system for recording rates.
- Protect players in accordance with the rules of the 2012 Betting Law.
Validity and cost of the license
Regardless of the class, all licenses are issued for a period of one or two years. In some cases, the period may be extended. In case of violation of the rules under the 2012 Betting Law, the NBA may revoke or suspend the license.
Separately, the licensee must pay a fee of EUR 30,000 for one year and EUR 45,000 for two years.
Requirements for licensees
Applicants for a license are subject to additional requirements:
- cash payments for those who have received a class B license are made through a credit / debit card or through other types of electronic transfers (art. 54, Rates Law 2012);
- during the adoption of electronic bets, the Class B licensee cannot conduct any transactions with cash (Art. 58 (1), Rates Law 2012);
- Class B licensees are prohibited from accepting bets if the funds on the company’s account are insufficient to cover the player’s bet;
- Class B licensees are required to have a valid bank account operating in the island of Cyprus.
The main backup server, which is located on the island, must be connected to the organ’s computer equipment. In addition, the licensee company must have a dedicated website address. The common platform for accepting bets must meet the general criteria set out in the 2012 Betting Law.
Algorithm of actions in the licensing process
To obtain a class A, B license, you must:
- register a company in Cyprus;
- open a bank account;
- fill out an application for a license;
- draw up and submit a declaration of income and property;
- draw up and submit bank guarantees;
- draw up a business plan in the desired direction.
The specialists of Eternity Law International will provide you with expert advice on obtaining a license in a suitable jurisdiction.
If you have any questions or need advice on obtaining a license, call us at the numbers listed on the website, or write in the form located at the bottom of the page.