Online gambling in Cyprus has experienced a remarkable surge, positioning the island as a growing hub for digital betting. Though a relative newcomer to the online gaming scene, Cyprus only legalized internet gambling in 2016, with licenses currently restricted to sports betting. Nevertheless, online sports gambling has quickly gained traction, especially as football, basketball, and tennis dominate betting activity nationwide.
In 2023, the sector recorded impressive revenues surpassing $1 billion, marking a staggering 79% growth since 2020. This remarkable performance has elevated gambling to become a key pillar of the Cypriot economy, contributing 3.72% of the country’s GDP.
With its regulatory framework, strategic geographic location, and favorable business climate, Cyprus is carving out a unique niche in the Mediterranean’s competitive online gambling landscape. As demand for sports betting continues to rise, Cyprus’ future in the online gambling looks increasingly promising.
The current legal landscape
Online gambling in Cyprus is shaped by the Betting Law of 2012 and its subsequent updates. The law permits online sports betting while maintaining restrictions on traditional online casino games such as poker and slots. Operators in the industry must obtain a Class B license, which allows them to offer online sports betting services but prohibits the legal operation of casino-style games for Cypriot players.
To remain competitive and retain users, sportsbooks in Cyprus, much like those across other European nations, frequently offer promotions and discounts. These incentives not only attract new customers but also help maintain a loyal betting community. For example, users can use the Pulsz promo code while betting on various sports, a feature that has gained popularity in recent years.
Despite these limitations, Cyprus has emerged as a strategic player in the iGaming world. Its geographical location at the crossroads of Europe, Asia, and Africa provides a gateway to a broad, diverse market. Moreover, Cyprus’ status as an EU member state allows companies to operate within EU legal frameworks while taking advantage of its proximity to non-EU markets, offering a unique blend of accessibility and opportunity for iGaming operators.
The growth of the industry: Factors fueling the boom
Several factors have contributed to the rapid rise of online casinos in Cyprus. Chief among these is the island’s favorable tax regime. With a corporate tax rate of just 12.5%, Cyprus offers a competitive advantage for iGaming companies as it allows businesses to reinvest in their platforms, improving user experience and expanding game offerings. Additionally, Cyprus benefits from a well-established banking system, which plays a crucial role in ensuring smooth and secure transactions for both operators and players.
Another key driver is the regulatory framework. The National Betting Authority (NBA) oversees online gambling in Cyprus, providing a balanced approach that offers both security for players and flexibility for operators. The NBA’s ability to regulate without overburdening businesses has made Cyprus an attractive destination for iGaming firms looking to establish a reliable presence in the Mediterranean region.
Furthermore, Cyprus’s position as a business-friendly jurisdiction has attracted not only online casino operators but also tech and financial services companies that support the iGaming industry.
A Mediterranean comparison: Standing out among neighbours
Cyprus’s online gambling landscape stands in stark contrast to many of its Mediterranean neighbors. For instance, in Greece, online gambling is heavily regulated and taxed at much higher rates, making it less attractive for operators. Similarly, Italy and Spain, while boasting large gambling markets, enforce stricter advertising bans and player protection measures that can stifle growth.
On the other hand, Malta, another Mediterranean island, is considered a global leader in iGaming, with more than 300 iGaming companies. Malta’s fully legalized online casino market, supported by a comprehensive licensing system, has given it a competitive edge. However, Cyprus offers a more cost-effective alternative with similar geographic advantages, making it an appealing choice for companies looking to avoid Malta’s saturated market.
Final words
So, what makes Cyprus so attractive despite its limited legal framework for online gambling? Beyond the low tax rate and strategic location, Cyprus provides a stable political environment and a robust legal system that adheres to EU standards. This creates a sense of security for businesses, especially in a sector that is often fraught with regulatory uncertainties.
Moreover, Cyprus offers a unique mix of Mediterranean charm and business efficiency. Operators benefit from a high quality of life, which helps attract and retain talent, while also enjoying easy access to other European markets. For many iGaming companies, Cyprus strikes the perfect balance between a relaxed lifestyle and a highly regulated, yet business-friendly, environment.
DISCLAIMER – “Views Expressed Disclaimer: Views and opinions expressed are those of the authors and do not reflect the official position of any other author, agency, organization, employer or company, including NEO CYMED PUBLISHING LIMITED, which is the publishing company performing under the name Cyprus-Mail…more
