Remote Gaming License
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Cyprus Remote Gaming License
Cyprus parliament passed the Betting Law in 2012, providing a legislative framework for the issuance of a Cyprus gaming license.
Cyprus has made significant strides in the regulation of online gambling, aligning itself with other European countries. Prior to 2012, online gambling was prohibited in Cyprus, with efforts in place to suppress interactive wagering. However, a pivotal moment occurred when the country’s parliament enacted the Betting Law in 2012, establishing a robust legislative framework for obtaining a Cyprus gaming license.
The introduction of the Betting Law has brought about notable improvements in the online gambling landscape of Cyprus. With a clear legal framework in place, operators now have a legitimate pathway to acquire a Cyprus gaming license, enabling them to operate within the boundaries of the law. This shift has instilled a sense of security and trust for both operators and players, fostering a more transparent and accountable online gambling industry in the country.
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The enactment of the Betting Law not only legalized online gambling but also facilitated the implementation of measures to protect consumers and promote responsible gambling practices. The licensing process ensures that operators meet stringent criteria and adhere to regulations aimed at safeguarding players’ interests, including provisions for player protection, fairness, and security. This commitment to responsible gambling helps enhance player confidence and prevents issues such as fraudulent activities, underage gambling, and money laundering, ensuring a safer and more enjoyable online gambling experience for all.
What sets our service apart from others?
When it comes to opening a gambling company in Cyprus, Szilaghi Consulting is the top choice. Their in-depth understanding of the local gambling industry and regulatory landscape sets them apart, providing unmatched expertise and guidance throughout the entire process. With their experienced team, they ensure compliance with all legal requirements, streamlining the incorporation and licensing procedures. Szilaghi Consulting offers personalized solutions tailored to your specific needs, helping you navigate complex challenges and maximize your chances of success. With a reputation for trustworthiness, reliability, and unwavering commitment to client satisfaction, Szilaghi Consulting is the premier company to guide you in establishing your gambling business in Cyprus.
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Szilaghi Consulting is a leading provider of Cyprus Gaming License services
Familiarize Yourself with the Legal Framework
The following laws govern gambling activities in Cyprus:
- Betting Law of 2012 – (L. 106(I)/2012, as amended): This law regulates both land-based and online sports and other forms of betting. It established the National Betting Authority, which oversees and regulates the industry in Cyprus.
- The Taxation of Horseracing Bets and Sweepstakes Law 1973 (L. 48/1973): This law specifically focuses on regulating horse racing in Cyprus. It governs the provision of horse racing by the Nicosia Race Club and its representatives, as well as the taxation associated with such activities.
- Lottery Act (Cap. 74): The Lottery Act regulates lotteries, bingo, and skilled competitions in Cyprus. It stipulates that only the state is allowed to organize lotteries, except for small-scale lotteries and bingo events that are part of non-profitable, charitable, or festive activities. Private lotteries and bingo events for members of specific organizations or associations are also permitted under certain conditions.
- The Agreement between the Hellenic Republic and the Republic of Cyprus regarding the games offered by OPAP (Ratification) Law of 2003 (L. 34(III)/2003): This law ratifies an agreement between the Hellenic Republic and the Republic of Cyprus regarding games offered by OPAP, a Greek gambling organization. It provides a framework for the operation of certain games of chance under a state-granted monopoly.
- Certain Games of Chance Law of 2018 (L. 52(I)/2018): This law introduces a new framework for certain games of chance, which were previously operated under the state-granted monopoly to OPAP. It establishes a single license system and designates the National Betting Authority as the regulator for these games.
- The Casino Operations and Control Law 2015 – (L. 124(I)/2015): This law regulates state-granted monopolies for casino games in Cyprus. It grants licenses for casino operations, which are valid for a total of 30 years, with the first 15 years being an exclusive concession. The law also establishes the Cyprus National Gaming and Casino Supervision Commission to oversee and regulate the casino industry.
- Games Machines, Skill Machines, and Entertainment Machines Law of 1996 (L. 32(I)/1996): This law prohibits the provision of any form of gambling, betting, lottery, bingo, etc., through machines. It aims to regulate and restrict the operation of gambling activities that utilize machines in Cyprus.
These laws collectively form the legal framework for gambling activities in Cyprus and outline the regulations and authorities responsible for overseeing different aspects of the industry.
Cyprus Online Gambling License Benefits
Obtaining a gambling license in Cyprus offers numerous benefits for operators looking to establish their online gambling business. Here are ten key advantages:
- Reputable and Well-Regulated Market: Cyprus has a reputable and well-regulated gambling market, ensuring a secure and transparent environment for both operators and players. By obtaining a Cyprus gambling license, you demonstrate your commitment to operating within the boundaries of a regulated industry. This helps build trust and credibility with your customers, assuring them that their funds and personal information are protected. Operating in a regulated market also helps you differentiate your business from unlicensed competitors, attracting players who prioritize safety and fairness in their online gambling experience.
- Access to the European Union Market: Cyprus is a member of the European Union (EU), which opens doors to a vast market of potential customers. With a Cyprus gambling license, you gain the opportunity to provide online gambling services not only within Cyprus but also in other EU member states. This access to the European market expands your reach and customer base, allowing for greater growth and revenue potential. Furthermore, the EU framework provides a solid legal foundation, ensuring compliance with high standards of consumer protection and responsible gambling practices.
- Tax Advantages: Cyprus offers a favorable tax regime for gambling operators. The country provides competitive tax rates and incentives, enabling operators to optimize their financial performance. Corporate tax rates in Cyprus are relatively low compared to many other jurisdictions, resulting in potential tax savings and increased profitability for your gambling business. Additionally, Cyprus has an extensive network of double tax treaties with various countries, reducing the risk of double taxation and facilitating international business operations.
- Efficient Licensing Process: The licensing process in Cyprus is known for its efficiency and relatively streamlined procedures. The Cyprus Gaming and Casino Supervision Commission oversees the licensing and regulation of gambling activities, ensuring a transparent and straightforward application process. With proper preparation and adherence to regulatory requirements, you can obtain a Cyprus gambling license within a reasonable timeframe, allowing you to start operating your online gambling business promptly.
- Wide Range of Gambling Activities: The Cyprus gambling license covers a wide range of gambling activities, including online casinos, sports betting, poker rooms, and more. This flexibility allows you to diversify your offerings and cater to various preferences of players. Whether you want to focus on a specific type of gambling or offer a comprehensive online gaming platform, the Cyprus license provides the necessary framework to accommodate your business model.
- Player Protection and Responsible Gambling: Cyprus has robust regulations in place to ensure player protection and promote responsible gambling practices. By obtaining a Cyprus gambling license, you align your business with these important principles. This not only safeguards the interests of your customers but also enhances your reputation as a responsible and trustworthy operator. Implementing measures such as age verification, self-exclusion options, and responsible gambling tools helps create a safe and enjoyable online gambling experience.
- Strong Intellectual Property Protection: Cyprus provides strong intellectual property protection, safeguarding your brand, trademarks, and proprietary software. This protection helps prevent unauthorized use or infringement of your intellectual property, ensuring that your business assets are safeguarded. This aspect is particularly important in the online gambling industry, where intellectual property plays a significant role in establishing a distinctive brand identity and attracting players.
- High-Quality Infrastructure: Cyprus boasts a high-quality infrastructure, including advanced telecommunications networks and reliable internet connectivity. This infrastructure is essential for running a successful online gambling business, ensuring seamless gameplay, fast transactions, and reliable customer support. With Cyprus’ modern infrastructure, you can provide a smooth and uninterrupted online gambling experience for your players, enhancing their satisfaction and engagement.
- Skilled Workforce and Professional Service Providers: Cyprus has a skilled workforce and a pool of professional service providers with expertise in the gambling industry. Whether you need assistance with legal and compliance matters, technical support, marketing, or financial services, you can access a network of experienced professionals who understand the unique requirements of the online gambling sector. This availability of specialized expertise enables you to access comprehensive support and advice to enhance your business operations.
- Business-friendly Environment: Cyprus offers a business-friendly environment, with a strong legal framework, effective governance, and a robust financial system. The country encourages foreign investment and entrepreneurship, providing incentives and support for businesses to thrive. Cyprus has a stable political climate, economic growth, and a favorable geographical location between Europe, Africa, and the Middle East. These factors contribute to the overall appeal of Cyprus as a jurisdiction for online gambling, making it an attractive choice for operators looking for a conducive business environment.
In summary, obtaining a gambling license in Cyprus provides operators with a host of benefits, including operating in a reputable and well-regulated market, accessing the European Union market, tax advantages, an efficient licensing process, a wide range of gambling activities, player protection and responsible gambling practices, intellectual property protection, high-quality infrastructure, a skilled workforce and professional service providers, and a business-friendly environment. These advantages create a solid foundation for your online gambling business, ensuring compliance, growth, and long-term success in the dynamic and competitive online gambling industry.
“The Betting Law” in Cyprus introduces two distinct types of licenses for gambling activities:
- Class A License: This license is specifically for bookmakers operating offline sports betting services. It is applicable to bookmakers who have physical offices and excludes services related to horse racing or other activities covered under the Class B license.
- Class B License: This license covers online gambling activities, excluding slot machines and casino lotteries. It is designed for operators engaged in various online gambling services, such as sports betting, virtual gaming, and other forms of online wagering.
By implementing these two classes of licenses, “The Betting Law” in Cyprus ensures a comprehensive regulatory framework that distinguishes between offline and online gambling activities. This allows for proper oversight and control over the gambling industry, ensuring that operators comply with the specific regulations applicable to their respective license class.
In order to obtain either an A or B license in Cyprus, companies must fulfill the following requirements:
- Cyprus Stocks Availability: The company must have stocks available in Cyprus, indicating a tangible presence in the country.
- Foreign Registration: It is required to provide evidence of foreign registration, indicating the existence of a company with a primary activity in the field of betting. Alternatively, a partnership with a local company is also permissible. The minimum share capital requirement for both foreign and local businesses is EUR 500 000.
- Division in Cyprus: The company must establish a division or branch in Cyprus that focuses on betting activities. This can be either a foreign company or a local one.
- Financial Guarantee: A bank warranty of at least EUR 550 000, from either a Cyprus or another EU bank, is necessary. The warranty should be valid for at least 6 months after obtaining the license.
- Sufficient Resources: The company must demonstrate sufficient financial resources to ensure timely payments to players.
- Acceptable Accounting System: It is essential to have an acceptable accounting system in place for the chosen betting service, ensuring accurate financial reporting.
- Compliance with the Betting Law of 2012: The company must comply with the provisions of the “Betting Law of 2012,” particularly regarding player protection measures.
Meeting these requirements is crucial for companies seeking to obtain an A or B license in Cyprus. By adhering to these regulations, businesses can demonstrate their commitment to operating within the legal framework and ensuring a secure and responsible gambling environment for players.
The license issued for gambling activities in Cyprus has a validity period of either 1 or 2 years. After the expiration of the license, it is possible to apply for a renewal. However, it’s important to note that the National Betting Agency reserves the right to revoke the license if the licensee violates any provisions of the current law, as stated in Article 24.
To obtain the license, the applicant must pay a fee which varies depending on the duration of the license. For a 1-year license, the fee is EUR 30 000, while for a 2-year license, it is EUR 45 000.
It’s worth noting that for Class B licenses, the payment must be made through a debit card, credit card, or any other electronic payment method. Cash payment is strictly prohibited according to Article 58(1).
Once the Class B license is obtained, the licensee is required to open an account with a Cyprus bank or any other institution authorized to provide banking services in Cyprus. Additionally, Class B licensees are obligated to analyze the player’s current account before accepting their bet. If there are insufficient funds in the player’s account to cover the bet, the licensee must reject the bet in accordance with the regulations.
According to Article 71, the applicable tax rate for gambling activities in Cyprus is a combined rate of 13%. This rate is calculated based on the net revenue generated from the gambling operations.
Out of the total tax rate, 10% of the net revenue is assigned to the Cyprus sports federations. This allocation aims to support and promote sports activities within the country.
Additionally, 2% of the net revenue is designated for funding extra gambling programs. These programs focus on initiatives related to responsible gambling, player protection, and the prevention of gambling-related harm.
In summary, the tax structure for gambling activities in Cyprus entails a 10% contribution to sports federations, 2% for additional gambling programs, and the remaining 1% forms the tax on net revenue. This framework ensures that a portion of the generated revenue is directed towards supporting sports development and implementing measures to ensure a safe and responsible gambling environment.
As per the regulations, it is mandatory for all data related to gambling activities to be stored solely on a Cyprus server data system. This ensures that sensitive information remains within the country and is subject to local jurisdiction. The server or data center used for this purpose must be connected to the government’s electronic system, facilitating the transmission of transactional data in a secure manner.
Furthermore, websites accepting bets from players are required to have a specific address format. The website address should end with “LTD” followed by the domain extension “.com.cy”. This requirement aims to clearly identify and distinguish licensed gambling platforms operating within Cyprus, enabling players to easily recognize legitimate and authorized websites.
By implementing these regulations, the government of Cyprus aims to maintain control over data security and ensure that licensed gambling operators adhere to the established standards. The use of a Cyprus server data system and the prescribed website address format contribute to the overall integrity and transparency of the online gambling industry in the country.
Contact Szilaghi Consulting to Get Your Cyprus Gambling License
With over two decades of experience, Szilaghi Consulting has been a trusted partner for startups, entrepreneurs, and established companies in the online gambling industry. Our expertise spans across various jurisdictions, and we have developed a deep understanding of the specific requirements and obligations involved in incorporating a company and obtaining a gambling license in Cyprus.
Having worked extensively in Cyprus, we have established strong relationships with key stakeholders, including regulatory authorities, service providers, and other gaming companies. This positions us as market leaders in assisting our clients in achieving their licensing goals in Cyprus.
By leveraging our vast network of contacts and comprehensive knowledge of the licensing process, we ensure a smooth and efficient setup for your gambling business in Cyprus. We are well-versed in the requirements, criteria, nuances, and potential challenges that may arise, allowing us to guide you effectively and help you overcome any obstacles you may encounter.
To embark on your journey of incorporating a company and applying for a gambling license in Cyprus, or to discuss your plans, vision, and available options, reach out to Szilaghi Consulting today. Our team is ready to provide you with expert advice and personalized assistance.