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During and after Cyprus’s accession to the EU in 2004, internet gambling service providers licensed in other EU member states took advantage of the legal uncertainty and weaknesses that existed in the country, allowing them to operate from Cyprus-based premises under the concept of “free movement of services”.
Due to the fact that there was no national legislation controlling the business, the widespread consensus among officials was that the uncertainty allowed such services to take part from Cyprus and that online betting was legal because there was no special legislation regulating this topic.
Cyprus passed the Betting Law of 2012, as revised in 2019 (henceforth the “Law”), which determines Cyprus betting operations.
The Law is overseen by the Ministry of Finance, which is also in charge of its changes, regulations, and directives. The Law defined the statutory framework in regard to these activities, as well as filling in some loopholes in Cyprus legislation.
Similarly, the state owns and operates gambling to a limited extent, while private businesses are allowed to offer gambling activities in accordance with the Law’s rules.
Still, there’s a number of Cyprus betting services that are absolutely forbidden both in physical locations and online, including, limited betting games machines, dog racing and Bitcoin gambling.
The National Betting Authority (henceforth the “NBA”) is in charge of overseeing all gaming activities in Cyprus.
The NBA’s tasks include reviewing applications, licensing, auditing and overseeing betting shops and online betting providers as well as investigating complaints and suspending licenses.
Class A License which monitors land betting services within licensed premises, and Class B Licence which regulates internet Cyprus betting services, excluding slot machines, online casinos and lotteries.
Licenses are valid for one or two years and can be renewed with the NBA’s permission and it is strictly forbidden to transfer an operating license.
A company looking for a license under “the Law” must either have its headquarters in Cyprus or have a branch (overseas company) in Cyprus that conducts betting activities as its primary business.
In addition, its authorized or issued share capital must be at least €500,000.
The application must be supported with a bank guarantee in the sum of €550,000 from a banking institution based in Cyprus or an EU member state, valid within a six-month period following the certification of the license to the applicant.
Moreover, every application must show that it has sufficient resources to pay the players’ wins, suitable accounting and control systems and can adhere to the NBA’s standards to protect its players.
Likewise, in order to carry out a transaction or establish a business liaison with another individual, a service provider must carry out due diligence for client identification, as required by Cyprus’ anti-money laundering legislation.
In order to do that the player needs to provide the following documents:
- Proof that he/she is over 18 years old
- Identification
- Address of residence
- Contact details, such as valid email address and
- Declaration that he/she has been informed of the terms and the way in which the bet will be conducted, including the payment that may be paid to the Class B license.
If the Class B license suspects that the person has provided false information, the licensee is required not to register that person. However, if the person has already been registered, the licensee must cancel the registration. In addition, the Class B licensee is required to authenticate the player’s identification within 30 days of registration and to preserve a list of all registered players under the specific platform in an electronic format.
Companies with licenses providing betting services for the services allowed only by “the Law” in other EU member states, can also provide those services in Cyprus prior to receiving a license from the NBA. This can only be applied to the companies who submit for a license within one month of notification of the date, on which the NBA will accept license applications, as per article 101.3 of “the Law”.
Nevertheless, “The Law” does not mention whether a licensed individual in Cyprus can provide internet betting services to people who do not live in Cyprus. As a result, a Cyprus company can offer such services in any other country, subject to the legislative framework in place in the intended player’s country of residency.
However, unless the standards outlined above are met, Cyprus betting services to people living in Cyprus by a non-licensed organization (whether located in Cyprus or not) is strictly prohibited.
To summarise, an entity registered and licensed in Cyprus is authorized to offer any online betting services to any country other than Cyprus as long as the laws and requirements of that country are met. On the other hand, any international licensed company registered outside the island of Cyprus, cannot provide such services unless it obtains a license from the National Betting Authority.
Bet on Alfa is a Cyprus-based company established on the principles of responsible and safe gaming. It is licensed by The National Betting Authority of Cyprus with Class A and Class B licenses, allowing it to operate sports betting both in stores throughout Cyprus and online.