Cyprus

According to government figures released for 2008, the turnover for internet gambling peaked at $2 billion and is estimated to rise by 150% by 2012. Cyprus has enjoyed booming profits from the online gambling industry alone for the past five years, however, little exists in the way of gambling legislation. The reformed Betting Act (2007) currently extends to online gambling, altered to aid Cypriot compliance with the EU free-trade agreements. In July 2010 rumors abound that Cyprus' government were planning a complete reform of laws relevant to online gambling, with some sources stating there could be an outright ban imposed on both local and off-shore operators targeting citizens of the jurisdiction. The EU Commission has yet to approve plans submitted by the Cypriot Government.

In accordance with The Collective Gambling Regulation Act 1975, offshore sports betting and online gaming service providers are free to operate within the jurisdiction. All providers are subject to a profit tax, payable monthly or annually on profits. This currently ranges between 4-10%. In order to obtain a license for operation within both Cyprus and internationally, a service provider must be registered as a limited liability corporation within the jurisdiction. Annual turnover must meet the minimum criteria – currently €170,100. The company objective must be exclusively geared to sports betting or online gaming and a deposition of €8,543 shall be payable upon application. Additionally, an application must be submitted prior to 30th September, if a service provider requires the license for trade the following year. Cyprus Ministry of Finance conduct both Due Diligence and Financial Review, therefore may disapprove applications should either not meet specification.

A bill prepared by the Cyprus House of Representatives in 2004 has recently made news once again, prompting speculation of an outright ban on online gaming within the jurisdiction. At present, the European Commission has not approved such a Bill, believing certain clauses directly contradict the rule of free-trade, as set out in EU and WTO guidelines. Obtaining a license in Cyprus is notoriously difficult, not least due to strict requirements, yet also because of uncertainty about the future of online gaming for the jurisdiction.