The Mediterranean island of Cyprus has emerged as a strategic hotspot for iGaming businesses, especially in the realm of regulated online sports betting. With its EU membership, favorable tax rates, and a transparent regulatory framework enforced by the National Betting Authority (NBA), Cyprus is fast becoming a competitive alternative to more saturated hubs like Malta or Gibraltar.
Whether you’re exploring iGaming license options in Cyprus, expanding into the EU online betting market, or simply staying ahead of regulatory trends, this guide outlines everything you need to know.
🎯 Why Cyprus is Attracting iGaming Operators
Cyprus offers a mix of advantages that make it attractive for legal gambling businesses:
✅ Strategic EU Location
Located at the crossroads of Europe, the Middle East, and North Africa, Cyprus offers easy access to major markets while benefiting from EU legal protections and free movement of services.
✅ EU Gambling License Compliance
Though restrictive in scope, Cyprus offers fully recognized Class B online betting licenses, suitable for operators looking to enter the regulated European iGaming market legally.
✅ Transparent Gambling Regulation
Thanks to its Betting Law of 2012, revised in 2019, Cyprus has one of the clearest and most enforceable gambling laws in the region.
✅ Low iGaming Tax Rate
With only 13% tax on gross gaming revenue, Cyprus offers one of the most competitive tax regimes for online sports betting operators in Europe.
📜 Cyprus Gambling Laws: A Brief History
Before joining the EU in 2004, Cyprus had inconsistent gambling legislation. Many offshore companies exploited these legal gaps to operate online gambling platforms in the country.
This changed with the Betting Law of 2012, which created a structured legal environment and established the National Betting Authority. It was a turning point in transforming Cyprus into a legitimate, regulated iGaming hub.
🔐 What Gambling Is Legal in Cyprus?
Cyprus follows a conservative gambling policy focused on sports betting only. Here’s what’s permitted and prohibited:
✅ Legal:
- Online and land-based sports betting
- Licensed satellite casinos (land-based only)
❌ Illegal:
- Online casino games (slots, roulette, blackjack, poker)
- Horse and dog race betting
- Virtual betting or spread betting
- Cryptocurrency gambling
The law is enforced strictly, with harsh penalties for unauthorized operators.
🎫 Types of Gambling Licenses in Cyprus
Operators can apply for one of two license types under the Cyprus Betting Law:
Class A License
- Covers land-based betting shops
- Excludes horse racing and casino gaming
Class B License
- Covers online sports betting only
- Excludes all other forms of digital gambling
Key requirements:
- Must be a registered Cyprus company or have a local branch
- €500,000 minimum share capital
- €550,000 bank guarantee to ensure financial stability
- Licenses valid for 1 or 2 years and must be renewed
🏛️ Role of the National Betting Authority (NBA)
The National Betting Authority is the official gambling regulator in Cyprus. It is responsible for:
- Issuing licenses (Class A & B)
- Monitoring AML compliance
- Auditing licensed operators
- Enforcing age verification laws
- Handling consumer complaints
The NBA also ensures that licensed operators can pay out winnings at all times and store player data securely.
🛡️ AML, Player Verification, and Compliance
Cyprus maintains some of the strictest anti-money laundering (AML) protocols in the EU iGaming sector. Class B operators must:
- Verify players’ age, identity, and residence within 30 days
- Maintain secure electronic records
- Prevent access to minors and self-excluded players
- Be capable of immediate payout of winnings
Non-compliance results in hefty fines or license revocation.
🌍 Can Foreign Operators Offer iGaming Services in Cyprus?
Yes — but under strict licensing rules.
Operators based in other EU member states can apply for a Class B license to legally provide online sports betting in Cyprus, but must:
- Apply during open license windows
- Maintain a local presence in Cyprus
- Comply with NBA standards
Cypriot-licensed operators cannot offer services abroad unless authorized in the target jurisdiction, keeping Cyprus› market well-regulated and controlled.
🏢 Satellite Casinos: Expanding Land-Based Gaming
Beyond sports betting, Cyprus also allows licensed casino companies to operate up to four satellite casinos under the Casino Operations and Control Law (2015). These land-based venues are legal under a single integrated casino license and are limited to serving residents within Cyprus.
This hybrid approach helps the country stimulate economic growth while maintaining strict digital controls.
🚀 Future of iGaming in Cyprus
There’s growing discussion in policy circles about expanding the legal scope of online gambling. While online casinos remain banned, regulatory reviews and potential EU-level pressure may lead to future liberalization.
In the meantime, Cyprus continues to attract serious betting operators with its:
- Stable legal environment
- Low tax rates
- Professional regulatory body
- High-quality workforce
📈 Conclusion: Is Cyprus the Next iGaming Powerhouse?
While still limited to online sports betting, Cyprus is clearly building momentum as a legitimate, regulated iGaming jurisdiction. Its strong licensing standards, tax benefits, and access to the European market make it a smart choice for betting operators looking to scale legally and securely.
From compliance to customer safety and regional access, Cyprus offers a solid foundation for growth in a high-stakes industry.
