HomeGaming Licensing in Cyprus
The gambling business in Cyprus represents a promising industry, attracting both local and foreign investors. Thanks to its advantageous geographical location and stable economy, the country is becoming appealing to gambling operators. However, for legal activities in the gambling sector, it is necessary to obtain a special licence. The regulation of the gambling market is aimed at creating a safe and transparent environment for players and operators, making the licensing process an important stage in conducting business.
What is a Gaming License in Cyprus
Cyprus gaming license is a permit document that operators wishing to conduct activities in the gambling sector are required to obtain. The licensing process is controlled by the National Betting Authority of Cyprus (NBA), which regulates and oversees the market. The main regulatory acts include the Betting Law of 2012 (Law 106(I)/2012) and its subsequent amendments. This law establishes the rules for licensing, taxation, and control over operators, ensuring transparency and protecting users’ interests.
Types of Gaming Licenses in Cyprus
In Cyprus, there are two types of gambling licences intended for gambling operators. Each type of licence has its own features and requirements that must be met for legal operation within the country’s territory. Cyprus gambling licence is regulated by local legislation and provides operators with various opportunities for conducting business.
A Class A licence allows the organisation and offering of land-based sports betting, such as bookmakers. It regulates activities related to physical betting locations where players can place predictions on sporting events.
A Class B licence is intended for online betting operators. It allows the provision of betting services on the internet, enabling users to make predictions on sporting events through digital platforms.
Application Procedure for a Gaming License in Cyprus
The process of obtaining a Cyprus gambling license requires compliance with strict conditions, depending on the type of license. For a Class A license, the applicant must be a registered legal entity and have an office located in Cyprus. The company is obliged to confirm the presence of stable capital and compliance with anti-money laundering and counter-terrorism financing standards. The regulator evaluates the business plan, security technological solutions, and compliance with regulatory requirements.
For a Class B licence, the requirements are similar. The company must be registered in Cyprus or have a branch of a Cypriot company. The main activity must be related to betting, and the minimum share capital must be no less than 500,000 euros. A bank guarantee of 550,000 euros from a Cypriot or European bank must be provided, with an expiry date six months after the licence is issued. The operator is obliged to demonstrate sufficient resources for paying out winnings and maintain a transparent system of control and accounting.
Additionally, a reliability check of the applicant is carried out, along with software auditing and an analysis of player protection mechanisms. For a class B licence, special attention is paid to the technical audit of the platform, including the random number generator and measures to prevent gambling addiction. Only after successfully passing all stages of verification does the operator obtain the right to conduct activities.
Licensing of the gambling business in Cyprus is a comprehensive process ensuring market transparency and user safety. Thanks to strict regulation by the National Betting Authority (NBA), Cyprus remains an attractive jurisdiction for gambling operators, providing stable conditions for conducting business.
Gaming License Fees and Validity Period
All gambling licences in Cyprus are issued for a term of one or two years and can be renewed upon the licensee’s application. In case of non-compliance with the provisions of “Article 24” of the Betting Law 2012, the National Betting Authority (NBA) has the right to revoke or suspend the licence. The licensee is required to pay a fee of €30,000 for a one-year licence or €45,000 for a two-year licence. These amounts must be paid in full before the operator begins their activities.
Money Laundering Legislation
Legislation on combating money laundering in Cyprus provides strict control measures over the financial operations of gambling operators. For holders of Class B licences, only electronic payment methods are permitted, including debit and credit cards (Article 54 of the Betting Law 2012). Cash transactions for placing bets are prohibited (Article 58(1) of the same law), and operators cannot accept bets if the player’s account lacks sufficient funds. Licensed companies are required to have a bank account in an accredited financial institution in Cyprus.
Technical requirements for operators include the presence of a backup server located in Cyprus, which must be connected to the regulator’s systems and ensure real-time transaction monitoring. All licensed websites must use a domain name ending in “.com.cy” in accordance with the regulations of the Cyprus Domain Name Authority. The betting platform is required to comply with the provisions of Directive 13/2016, which regulates technical and operational standards.
Gaming Tax Obligations for License in Cyprus
In accordance with Article 71 of the Betting Law 2012, gambling companies in Cyprus are obliged to pay a combined gambling tax of 13% on their net revenue. This tax includes:
- 10% in favour of the state.
- 3% — contribution to the National Betting Authority, of which 2% is distributed among the sports federations of Cyprus, and 1% is allocated to programmes for combating gambling addiction.
Although the gambling tax rate in Cyprus may not seem the most favourable compared to other jurisdictions, other tax rates offer significant competition. Many companies choose Cyprus as their base due to the low corporate tax rate, which is only 12.5% of their net profits. Furthermore, Cyprus does not impose a tax on income from dividends and interest paid to non-residents, nor on royalties paid to non-residents for rights not used in Cyprus.
Cyprus has also concluded more than 65 international agreements on the prevention of double taxation, which contributes to the improvement of cross-border investments and the reduction of the tax burden for international entrepreneurs whose companies are considered tax residents of Cyprus.
Legal Assistance in Obtaining a Gaming License in Cyprus
Obtaining a gambling licence in Cyprus is a multi-stage and complex process that requires strict compliance with all legal norms and procedures. The importance of the correct approach to each stage of licensing cannot be overstated, as even a minor mistake or failure to meet the requirements can lead to a refusal to issue the licence or additional costs. Turning to our legal firm will allow you to avoid many potential difficulties faced by many operators and significantly speed up the process of obtaining the licence.
We provide a full range of legal services necessary for the successful acquisition of a gambling license in Cyprus. As part of our services, we will prepare all the necessary documents, assist with their submission to the relevant authorities, and provide legal support at all stages of the procedure. Our team of experienced specialists will advise you on compliance with regulatory requirements. Additionally, they will help organise interaction with the regulator and ensure the fulfilment of all mandatory requirements for obtaining the licence.
We also offer services to minimise risks that may arise during the licensing process and business operations. Our goal is to help you build a legal and successful business that complies with all the laws of Cyprus. With us, you will receive qualified support at every stage, ensuring the reliability and security of your gambling business.
How to obtain a gaming license in Cyprus?
To obtain a Cyprus gambling license, it is necessary to register a company in Cyprus and submit an application to the National Betting Authority (NBA). The applicant must provide financial guarantees, a business plan, and confirm compliance with anti-money laundering requirements. Additionally, there is an inspection of technical equipment and the reliability of the owners. After all documents are approved, the operator receives the license and can legally conduct gambling activities.
How much does a gaming license in Cyprus cost?
The cost of a Cyprus gambling license is the same for both types of licenses — Class A and Class B. The licensee is required to pay a fee of €30,000 for one year or €45,000 for two years. These amounts must be paid in full before the operator begins their activities.
Are gambling activities regulated in Cyprus?
Yes, the Cyprus gambling license is strictly regulated by the National Betting Authority (NBA) in accordance with the Betting Law of 2012. Operators must comply with requirements for business transparency, player protection, and prevention of illegal financial operations. Control includes software verification, employee licensing, and regular financial audits. Non-compliance with legislation may result in fines or licence revocation.
How long does it take to get a gaming license in Cyprus?
The time required to obtain a licence depends on the completeness of the submitted documents and compliance with the requirements. On average, the process takes from three to six months. The regulator conducts a thorough review of the company, its financial condition, and its security system. If all conditions are met, the licence is issued within the established timeframe. In case of deficiencies in the documentation, the process may be prolonged for a longer period.
