by Andria PapageorgiouCyprus Online Gambling Licenses
Cyprus has established a structured regulatory framework for online gambling, primarily governed by the Betting Law of 2012. The National Betting Authority (NBA) oversees the licensing and regulation of betting activities within the country.
Types of Gambling Licenses in Cyprus
Cyprus offers two main classes of gambling licenses:
- Class A License: This license permits land-based betting services, excluding horse racing. It applies to physical betting establishments where customers can place bets in person.
- Class B License: This license is designated for online betting operators, allowing the provision of online sports betting services. Notably, it does not cover online casino games, slot machines, or lotteries, as these forms of online gambling are currently prohibited in Cyprus.
Key Requirements for Obtaining a Class B License
To secure a Class B online betting license in Cyprus, applicants must meet several stringent criteria:
- Corporate Presence: The applicant company must be registered in Cyprus. If the company is established abroad, it must form a partnership with a Cypriot company whose primary activity is related to betting.
- Financial Stability: Applicants are required to demonstrate sufficient financial resources, including a minimum paid-up capital of €500,000, to ensure the ability to pay players’ winnings and maintain operational stability.
- Bank Guarantee: A bank guarantee of €550,000, issued by a bank in Cyprus or another EU member state, must be provided. This guarantee should be valid for six months beyond the license issuance date and serves as a financial safeguard for player winnings and other obligations.
- Technical Infrastructure: Operators must establish a backup server located in Cyprus, connected to the NBA’s computerized systems to facilitate real-time transaction processing and monitoring of betting activities. Additionally, the official website of the gambling operation must use a .com.cy domain, indicating its registration and operation within Cyprus.
- Compliance with Regulations: Applicants must adhere to all NBA regulations, including implementing robust control and accounting systems, and comply with Anti-Money Laundering (AML) legislation to ensure a secure and fair betting environment.
Application Process and Fees
The process to obtain a Class B license involves several steps:
- Company Registration: Establish a company in Cyprus or form a partnership with a Cypriot company engaged in betting activities.
- Bank Account: Open a corporate bank account in Cyprus to manage all financial transactions related to the gambling operation.
- Application Submission: Submit a comprehensive application to the NBA, including business and financial plans, proof of initial capital, and the required bank guarantee.
- Technical Setup: Ensure the technical infrastructure meets NBA requirements, including setting up the backup server and securing the appropriate domain.
The licensing fees are structured as follows:
- €30,000 for a one-year license
- €45,000 for a two-year license
Taxation
Licensed operators are subject to a combined tax rate of 13% on net gaming revenue, which includes:
- 10% gaming tax
- 3% contribution to the NBA, further allocated as 2% to Cyprus Sports Federations and 1% to gambling addiction programs.
Andria Papageorgiou Law Firm
Our law firm specializes in assisting operators with navigating the complexities of obtaining an online gambling license in Cyprus. From company incorporation to preparing and submitting the license application, we ensure compliance with all legal and regulatory requirements set by the National Betting Authority.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.