Cyprus

The state of Cyprus is an island in the Mediterranean Sea. It is important to realize that the territory is divided into two states: the Republic of Cyprus and the Turkish Republic of Northern Cyprus. The division occurred in 1947, when Turkey seized approximately 37% of the island by armed force.

It should be noted that other states do not recognize the Turkish Republic of Cyprus, and the UN believes that South Cyprus retains sovereignty over the entire island. Still, parts are temporarily not under its control. The border between the two territories is at the city of Nicosia. The separation is demonstrated- a green strip across the city.

Gambling in Northern Cyprus:

There are over 30 land-based casinos. In each, you can find slot machines and table games. The level of service in some establishments is very high, there are quite prestigious casinos, such as Cratos Premium. Since gambling is prohibited in Turkey, many Turks and tourists from all countries come here. Although this is inconvenient, you can visit Northern Cyprus only from Turkey, as only planes from this country can fly to Cyprus.

Gambling in the South of Cyprus:

The first land-based casino in Cyprus was planned to open in 2021. It is supposed to house a gambling establishment, spacious lounges, specialized parks, premium boutiques, and excellent restaurants. Temporary casinos are now operating in Limassol and four in Nicosia, Larnaca, Famagusta Free District, and Paphos. These establishments are scheduled to close when the leading large casino is operational.

The Republic of Cyprus has legalized sports betting in land-based bookmakers and online companies. Internet casinos are prohibited in South Cyprus.

Cyprus: Casino with licenses

As of 2019, there are five land-based casinos in Cyprus: in Limassol, Nicosia, Larnaca, the free district of Famagusta, and Paphos. You can only bet on sports on the internet at establishments such as BET365, STOIXIMAN, UBET, Sportingbet, PARI—MATCH, and FONBET.

Cyprus review

Regulation of gambling on the island is carried out in both of its territories, but the most transparent regulatory procedure is carried out in the southern part. Moreover, given the world practice regarding the non-recognition of the Northern Turkish Republic of Cyprus in international law, it makes no sense to cover the process of obtaining a permit for gambling in this part of the country. Therefore, let's consider the jurisdiction of the Republic of Cyprus (Southern part).

The territory of the Republic of Cyprus allowed land-based casinos, sports betting, and online betting. Two organizations regulate gambling:

1. Cyprus Gaming and Casino Supervision Commission regulates land-based casinos.
2. Betting Authority (National Betting Authority) -regulates sports betting in the land-based and digital sphere.

The issuance of gambling licenses for land-based casinos is in the form of a tender process. Although it is worth noting that it is not currently possible to obtain this type of license, because there is an approved plan to build casinos by 2021. Nevertheless, the Gambling Commission requires an impressive list of licenses necessary to conduct its activities, for example, it is mandatory to have a license for employees of gambling establishments.

Types of licenses for land-based casinos:

• The Casino License is necessary to open a casino
  
• The Casino Employee licenses for casino staff (employees who have the right to visit the closed part of the club, croupiers, etc.).
  
• The Casino Key Employee License is for casino staff with the right to make management decisions. These include senior management, security personnel, and management staff.
  
• The Supplier License is for companies engaged in software development or video slot suppliers.
  
• Test Services Provider License is for companies testing equipment used in the casino.
  
• The Junket Operator License is for operators offering players Junket tours. A junket tour is a type of entertainment in which players make a certain amount of money as a deposit and commit to playing for a certain amount of time. If all conditions are met, the organizer pays for the player's expenses, such as hotel accommodation.
  
• The Junket Representatives License is for the staff of companies organizing junket tours.
  
• The Gaming Equipment License covers the equipment used in the game. Only a company with a Supplier license can obtain a license.
  
• The Casino Games License allows gambling games to be placed in a casino.

The situation with online and land-based sports betting is more favorable. Companies can apply for a license to operate in the region at any time.

The National Betting Authority is responsible for licensing sports betting in the jurisdiction.

It issues the following types of licenses:

• CLASS A is a license for land-based bookmakers
  
• CLASS B is a license for online betting companies.
  
• CLASS A authorized representative is a Class A license for a representative. It is a Class A license, but it is less expensive to obtain.

If you look at gambling in the country in more detail, it is in its infancy.

Therefore, some laws regulating the work are being revised and supplemented. It is also worth considering that the Cyprus online betting license is not so prestigious and interesting for major players in the gambling industry. However, it is important to emphasize that both licensing organizations are steadily developing and adopting international experience in this area.

Gambling history in this country

Gambling was banned in the Republic of Cyprus until 2015. The local church had an important influence on the prohibition of gambling. However, the situation changed significantly when 2012 a crisis hit the country, and the government had to find ways to solve the situation.

Given this, an initiative was put forward to allow mercenary gambling in the country, which will allow rapid investment, annual revenues to the budget, and, of course, there will be new jobs. For almost two years, this bill has been discussed.

The church was naturally a zealous opponent. But still, in 2015, the "Gambling Law of the Republic of Cyprus" appeared. Together with it, the Gambling Commission was established, which was responsible for regulating this sphere.

Licensing authority

Gambling in the state is divided into two main categories: sports betting and casinos. Therefore, regulation and oversight functions are also performed by two different organizations.

The Gambling Commission

Established in 2015, it is responsible for land-based casinos in Cyprus. It consists of seven members, each with the necessary experience and expertise in a particular business area, including industry, IT technology, law, and more.

The Commission is the regulator of casino operations in the Republic of Cyprus. It licenses and regulates casino operators and individuals working in the industry, including casino employees, equipment suppliers, warehouse operators, and those who provide testing laboratory services.

The regulator has a clear plan and objectives that must be implemented shortly. In particular, it is to finalize the legal and regulatory framework and improve the mechanism of checking casinos for compliance with the work standards due to the gambling license.

The main duties of the Gambling Commission of the Republic of Cyprus:

• The issuance of gambling licenses and all that is associated with this (assessment of the applicant, charging fees, control of the activities of the operator);
  
• Make sure that the game in the casino is fair;
  
• Allow disciplinary and punitive sanctions;
  
• Work with organizations protecting the public from the harm of gambling;
• Conduct activities warning about the harm of gambling;
  
• Review complaints from casino customers and make decisions on disputes arising between the operator of casino resorts and casino customers;
  
• Check the financial statements of operators.

It should be noted that the regulator's official website provides all the necessary information for operators and players. The navigation component is well organized, making it easy to find any information quickly.

National Betting Authority

Created in 2012 under the Betting Act. Consists of six members appointed by the Council of Ministers and a chairman, there must be a disinterested person. Each member holds office for three years, after which this period can be extended for an additional three years.

The National Betting Authority is the regulator of land-based and online sports betting. The main responsibilities include:

• Consideration of license applications and their issuance
  
• Monitoring of bookmakers for compliance with the rules specified when obtaining a license
  
• Working with player complaints
  
• Social aspect (gambling protection of the public, etc.).
  
• Social aspect (gambling protection of the public etc.)
  
• International cooperation with sports betting regulators
  
• Fighting against illegal bookmakers

The regulator's official website provides a lot of helpful information for players and companies wishing to obtain gambling licenses.

Requirements for licensees

To obtain a casino license, it is necessary to submit documents that meet the basic principles:

• Identity: the applicant's identity is verified, including matching the photos provided.
• Financial: the company must prove its financial solvency with official documentation.
  
• Celebrity: The commission will consider the company's operation in other jurisdictions, including player complaints against the company, etc.
• Competence: experience and sufficient qualification of the operator in this field.
  

The licensing cost ranges from 200 to 10000 Euros, depending on the type of license issued. The company must pay an average of 13% tax on gross income every month. In addition, it must pay 2.5 million Euros for the first four years of operation and another 5 million for the next five years.

To obtain a license for sports betting, there are several requirements:

• The main activity of the company must be sports betting
  
• The company must be registered in the Republic's territory. If the license is granted to a foreign company, it must register with the Cyprus Companies Department.
  
• The company's authorized capital must be at least 500,000 Euros. In addition, the Commission must receive a guarantee of €550,000 from a commercial bank operating in Cyprus or an EU member state.
  
• All necessary legal documents must be provided, including the personal details of the company's owners.

The company must pay between €2,000 and €45,000 to process the application. The fee will be refunded minus a 25% commission if the license is denied.

Conclusion

Gambling in the Republic of Cyprus can be assessed as "steadily developing." Of course, it is not quite clear how interesting the country is for investment in land-based casinos, given that the market is actually monopolized by Melco Resorts & Entertainment. Ltd. So even assuming a license is issued after 2021, when the casino resort will be operating, how will other entrants be able to compete?

Casinoz believes it will be very difficult. Legalizing online casinos would be a logical extension. If loyal taxation is adopted, the country will receive additional investments. In addition, the Cyprus Gaming and Casino Supervision Commission has very good prospects of becoming a great regulator.