investmentGATEWAY

Precise and personalised approach
INVESTMENT FAQs  | AVOID SCAMS
In some cases, fraudulent emails might claim to represent Investment Gateway and offer certain benefits. Investment-Gateway.eu does not send any such emails to request information. This website's service is purely informative, and to help direct interested parties to professional corporate services via third party consultants in Cyprus and the European Union.

Be aware. Ignore such emails and do not reply.


Thank you

Investment-Gateway.eu

Online Gaming License in Cyprus

Information, taxation and types of licenses under the Cyprus Betting Law of 2012.

Published on: 25 November 2016

The Betting Law of 2012 (the “Law”) constitutes a technical rule under the Laws on the Procedure for the Provision of Information in Relation to Certain Technical Rules 2003 and 2004, according to “Directive 98/34/EC of the European Parliament and Council.

The Betting Law essentially upgrades the regulation of traditional and newer forms of betting in Cyprus. It has now been four years since the law was enacted; however, it has been enforced during the last two years, and only Class A licenses have been issued to date. As for Class B licenses, the applications have been available as from 1st of October 2016.

Pursuant to the provisions of the Law, the National Betting Authority is appointed (‘NBA”), and undertakes to receive, review, examine and make the final decision of approval or withdrawal the applications as well as to monitor the betting services that are provided in the Republic of Cyprus.

The main provisions of the Law are the following:

Types of Licenses

In accordance with the provisions of the Law, betting services are provided only from a person holding a license issued by the designated authority, in the present case, the NBA. There are two classes of license that can be granted under the relevant law, namely, Class A -where the bets are conducted in a licensed premises- and Class B - for online betting. Class B license is granted in respect of the provision of electronic betting services, excluding “gaming machines of limited benefit”, lucky online casino games and electronic betting on horseraces. 
It is noted that “gaming machines of limited benefit” include poker type machines or other similar type machines with play cards, as well as any other machines which the NBA deems at its discretion to be included.

Application and Fees

In order to obtain a license, an application must be submitted to the NBA, with the payment of a designated fee, which is EUR 30,000 for a one year license and EUR 45,000 for a two year license. 

Betting services can only be provided by licensed persons (physical or legal) and there are three types of betting licenses issued by the NBA:

  • Class A license giving authorization for the provision to perform betting services within licensed premises excluding Class B betting services and horse racing betting;
  • Class B license giving authorization for the provision of electronic betting. Slot machines, online casino games and electronic horse-racing are exempted.
  • Class A bookmaker’s authorized representative, giving authorization of the provision to perform betting services on behalf of a Class A bookmaker within licensed premises excluding Class B betting services and horse racing betting.

The application for a Class A and B bookmaker’s license, can be submitted only by a company with shares, established either in the Republic of Cyprus or abroad and which has a branch in the Republic of Cyprus, with the main activity of betting activity and with an issued and fully paid up share capital of at least EUR 500,000.

The application, must, among others, be accompanied by a bank guarantee of a sum of EUR 550,000 and which has an expiry date six (6) months after the expiry of the license that has been granted. Further, the application is submitted together with evidence and information that concern the obligation to set up a backup server in the Republic of Cyprus. Finally, a number of additional pieces of information and supporting documents are required, including in respect of the UBOs and officers of the applicant company. 

Taxation and Contributions

With regards to taxation, the licensed entity/person must pay a betting tax to the Republic of Cyprus and a contribution to the NBA. A 10% betting tax on the net revenue is payable to the Republic of Cyprus and 3% of the net revenue is payable as contribution to the NBA for each accounting period. Please note that one accounting period amounts to one calendar month. 

The companies, which have been licensed by the NBA for the provision of betting services and which: 

  • Are not Cyprus tax residents (the control and the address are not within Cyprus) and
  • Do not have permanent premises in Cyprus, as they provide their services online. 
  • They are not liable for income tax in relation to the profits or benefits earned by the said services. It is noted that the installation of a back-up server within the Republic of Cyprus, would not be considered as permanent asset of the company. 

Player Protection

Pursuant to the Law, it is required for the website of the licensed entity/person to include certain information for the protection of the player, such as terms and conditions of the services provided by the licensee, various links for websites approved by the NBA, information on how to express concerns, and the procedure of the compliance examination of a player. It is noteworthy, that the NBA accepted the applications for the licencing of online betting firms from 3rd of October 2016 for a month. A lot of developments and improvements are under discussions in relation to the provisions of Betting Law in order to assist the expansion of this business and in the meantime to protect the public interest and each individual player by imposing the necessary reports and assessments.
Finally, the NBA is in discussions with Banking Institutions with the aim to make the opening of bank accounts in Cyprus possible. Bank account matters are monitored closely and there is regular communication with the NBA, in this regard.

Our team of highly experienced professionals is well positioned to provide legal advice and support with all matters relating to online gaming services in Cyprus.

Source: C. Savva & Associates

 

Return to Press Page

 

About Investment-Gateway.eu

One contact, multiple options

Established in 2011, Investment Gateway is an independent and impartial hub and initial point-of-contact to leading supplier-firms in Cyprus that provide professional services for investment purposes, including company formations, subsequent company administration and maintenance services, accounting and auditing, global tax planning, wealth management, as well as international banking. Investment Gateway introduces you to the right partner from a pool of pre-qualified supplier-firms, made-up of leading accounting, legal and consulting agencies in Cyprus.

The Investment-Gateway.eu platform is a completely free service, together with offering added-value content in general information, news updates, documents and analytics on the local Cypriot, European and global economy to help with investment strategies to the EU, Europe, Russia & CIS, Middle East & Africa, as well as around the world.

Investment Gateway Contact information:
Investment Gateway Media Investment Gateway Agents
www.investment-gateway.eu www.investment-gateway.eu
communications 'at' investment-gateway.eu contact 'at' investment-gateway.eu

Investment-Gateway is an eco-friendly professional services platform, taking action on global climate change by offsetting carbon emissions on behalf of all clients. Learn More

Cyprus Economy & Tax News  

Good Growth projected for Cypriot Economy
27 December 2018
Appeal for Shipping Sector Grows as Brexit Looms
20 December 2018
Amendment to UK-Cyprus Double Tax Convention
19 December 2018
Cyprus Business Register: 2017
05 December 2018
Cyprus-Serbia Summit
30 November 2018
Investment by Companies in Cyprus to Strengthen
01 June 2018
Geo-Blocking Regulation (EU) 2018/302
15 May 2018
Importance of Legal Due Diligence Report
30 April 2018
Cyprus-UK DTT
16 April 2018
Update on Latest Tax Circulars Issued in 2018
06 March 2018
Cyprus-Barbados DTT
19 February 2018
Minority Shareholders’ Rights in Cyprus
12 February 2018
EU Council Updates Tax Haven Blacklist
02 February 2018
Cyprus-KSA DTT
31 January 2018
Disclosure of Non Financial Information
19 January 2018
Prev |     Page 1 of 17

 

Economy, Finance & Tax News


Interviews & Speeches

 

European & Global Affairs

 

Review & Perspective on Cyprus
CEX.IO Bitcoin Exchange