The Republic of Cyprus is a democracy with a presidential system of government. Cyprus is an island in the Mediterranean that has a very long and interesting history. It is the third-largest and third most populated island in the Mediterranean having just over 1.1 million residents. Greek, English, and Turkish are the official languages.
While the Republic of Cyprus is legally recognized as a single sovereign state, it is actually divided into two separate parts. An area consisting of about 59% of the island’s landmass in the south and west is in control of the Republic but the north part of the country is occupied by Turkish forces. There is also a UN buffer zone between the two regions.
Cyprus is one of the island countries in the Mediterranean Sea and it is situated close to Egypt, Greece, and Turkey. The country is a member of the European Union and therefore the currency that is mostly used in Cyprus is Euro. The agrarian sector of the economy is gradually diminishing as the service sector assumes prominence.
Nevertheless, the state of Cyprus encourages and provides infrastructures for gaming and it offers licenses to operate within online poker rooms, sports betting, lotteries, casinos, and bingo sites. You can come across a few gambling establishments like betting shops, bingo, and keno halls in almost any of the main streets. The gaming industry is a pretty lucrative business in Cyprus.
Cyprus Online Gambling Regulations
The government of Cyprus offers casino operators, software, and service providers in the gambling industry, with a gambling license that allows gambling operators to conduct business related to casino, lotto, and other gaming-related activities. Cyprus Gambling License is one of the most popular licenses for online casinos worldwide.
The popularity of sports betting among Cypriots dictated that betting over the Internet becomes regulated. Cyprus adopted gambling activities regulation law back in 2012. However, the country started Internet bookmaking full regulation only at the end of 2016 due to many factors. The National Betting Authority, formed for this purpose, announced licenses requests receipt for online bookmakers from October 3, 2016.
Gambling at online casinos in Cyprus is illegal and punishable by law. Unlike most countries, Cyprus goes after operators and players alike. Online sports betting is the only form of online gambling allowed in Cyprus, although betting on horse races isn’t allowed. Cyprus’s infrastructure offers a wide array of services for online gaming operators and providers, such as high-capacity private racks, private cloud services, custom dedicated servers amidst other hosting options.
Cyprus has long been recognized as one of the preferred locations for Online Gambling operators to base their operations. This success has been due to a combination of factors, such as a progressive legislative system, political stability, first-rate telecommunications facilities, and a well established financial services industry. A wide range of gambling sites operates out of Cyprus including sports betting, Games of Skill, and more.
In Cyprus, online gaming companies should hold a license issued by the National Betting Authority. The Class A license is meant for land-based betting establishments that demand a physical presence in the country or a partnership with a local company. The Class B license concerns online sports betting operations, where all types of horse race betting are entirely prohibited. This leaves online sports betting the only legal form of online gambling in all of Cyprus.
The National Betting Authority has the right to receive and to examine all applications before making any final decision. National Betting Authority can revoke or suspend a license in the event of failure to comply with the regulations under the “Article 24” of betting law 2012. National Anti-Money Laundering Regulations, Unusual Transactions Act, Counter-Terrorism Financing Regulations and Know Your Customer Policies are applicable to all Cyprus Gambling Companies.
As part of its duties, the National Betting Authority monitors gaming businesses and services to ensure that they operate according to the standards and regulations of the Government of Cyprus. Compliance audits are conducted on a regular basis to ensure that the terms of the license are met. Licensees must maintain a complete audit trail for each player making a deposit with an operator, including financial transactions and individual bets.
Gaming systems, including back-end software logs, must be made available to third-party auditors. Gaming rules, results of games, and pay-outs are to be made available to National Betting Authority for five years.
Let’s talk more about the benefits by understanding the reasons why obtaining a Cyprus igaming license may be ideal for you.
How to Start An Online Gambling Business in Cyprus
When starting a Cyprus Online Gambling Business, first of all, it’s important to think about one of the most essential procedures, that is company registration and acquisition of the license. Cyprus Gambling License gives many excellent opportunities to each licensee and makes their business profitable. One of the main reasons as to why some people are considering opening up a gambling casino in Cyprus is that it has competitive tax rates.
Under the new licensing regime, approved online sports betting operators pay an effective tax of 13% of gaming revenue – 10% indirect tax, plus 2% to Cypriot sporting bodies and a further 1% to fund responsible gambling initiatives. Cyprus has political stability, first-rate telecommunications facilities, and a well-established financial services industry.
In addition, it maintains an attractive environment for international online gaming companies. Cyprus Gambling License is recognized by many countries all over the world, so you will have a large potential customer base after getting it.
In order to obtain a Cyprus Gambling License, the decision to approve the application is at the discretion of the National Betting Authority, based on the documentation submitted by our experts. The Cyprus issues one Online Gambling license which covers all gaming operations, igaming service providers, network operators, affiliates, white-label operators, and igaming software suppliers.
With this Cyprus Gambling License, online gaming companies can operate legally. Each applicant undergoes a thorough assessment, ensuring that licenses are only awarded to those applicants who are able to demonstrate such a financial standing and integrity as to preserve the international reputation of Cyprus as an online gambling hub.
In case something does not correspond to requirements, the National Betting Authority will provide a checklist of necessary improvements. A Cyprus Gambling License covers all forms of online gambling including eSports, Sports Betting, Games of Skill, and other gaming-related activities without being required to obtain one license for each individual product. Cyprus Gambling License enables companies to operate all over the world.
Cyprus Gambling Requirements
Residence in Cyrpus. Operators wishing to offer their services to Cyprus gamblers must be residents of Cyprus and they must obtain the relevant licenses and authorizations from the Cyprus National Betting Authority. In case the company is a foreign entity, it must appoint a local director, whose domicile is in Cyprus, to deal with the competent authorities in the country and have the power to conclude contracts on its behalf
Opening of a bank account with one of the banks in Cyprus where the operator would need to deposit the players’ money. Licensed remote gaming operators will only be allowed to make payments to players through the payment processors that have been approved by the Cyprus National Betting Authority
Requirements regarding the minimum share capital of the company depending on the type of game it offers
A monthly declaration giving details regarding income from games of change as well as the fees due will have to be submitted to the Cyprus National Betting Authority on a standard form
Compliance with the principles regarding the protection of minors as well as with the content of the promotional material used and the locations where they can be displayed
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