Cyprus as a gaming jurisdiction: Is a license required?

Cyprus has become a popular hub for gaming operators, especially those targeting the European and global markets. The island’s widespread reputation for regulatory integrity, robust infrastructure, and favorable business environment puts it in the spotlight among iGaming entrepreneurs. But an important question arises: is a license required to operate a gaming or betting company in Cyprus? Let’s demystify the Cyprus gaming landscape, focusing on what’s legal, what’s prohibited, and the practical steps to obtain a license.

What is allowed and what is prohibited in Cyprus?

The framework for gaming in Cyprus is tightly controlled and primarily governed by the Betting Law of 2012 and its amendments. The National Betting Authority (NBA) supervises all betting activity, both land-based and online, ensuring fairness and consumer safety.

In Cyprus, the key distinction lies between “betting” and “gambling.” While sports betting—both in physical locations and online—is regulated and permitted, full-scale online casino gambling, such as slots and table games, remains strictly prohibited. The only exception is the single integrated casino resort operator, which holds exclusive rights to operate casino facilities, including a limited number of satellite casinos.

The NBA issues two main types of licenses:

  • Class A License: For land-based betting (like sports betting shops). It excludes online services and horseracing.
  • Class B License: For online betting. This covers online sports betting and similar services but does not allow for online casinos, slot machines, or lotteries.

So, only sports betting and related activities are licensed and regulated. Horse racing betting, online casinos, slot machines, and lotteries are outside the regulatory framework and are not permitted.

Why base your gaming company in Cyprus?

Cyprus is more than just a sun-soaked island; it’s a well-established EU business center with strong advantages for international operators. Here are some highlights:

  • European Union status: Operating from Cyprus gives you access to the wider European market. This can be a strategic move for building a global holding structure in 2025.
  • Reputable licensing environment: The NBA and other authorities have adopted EU standards, ensuring transparent, high-quality processes for license applicants.
  • Business-friendly policies: Cyprus offers various tax benefitsincluding a 12.5% corporate tax rate, intellectual property incentives, and straightforward incorporation procedures.
  • Modern infrastructure: An advanced tech ecosystem, experienced legal advisors, and compliance consultants are readily available.

Types of licenses: Class A vs. Class B

Class A — Land-based betting

Operators providing betting services at physical premises need a Class A license. These licenses don’t cover online services or horse racing, but they do permit sports betting, poker (offline only), and dog racing. The premises must be within Cyprus, and all transactions must be cashless as required by law.

Class B — Online sports betting

If you plan to run an online betting site, you will need a Class B license. This allows you to offer sports betting services (including virtual sports and exchange betting) online, but notably, casino games such as blackjack or slots are not covered. Only Cypriot residents can use licensed Class B services in Cyprus, though the legislation does not prohibit providing services to players located outside Cyprus so long as the laws of the recipient’s country are respected.

Licensing process and requirements

To apply for a Cyprus gaming or betting license, here are the practical steps and core requirements:

  1. Incorporate a business in Cyprus: Your company must be either incorporated in the country or have a physical branch. You’ll need a registered office, and at least one director needs to be resident in Cyprus.
  2. Financial criteria: Applicants must have a minimum share capital of EUR 500,000 (either authorized or issued). Proof of sufficient financial resources to pay player winnings is required.
  3. Bank guarantee: A bank guarantee of EUR 550,000 from a Cyprus or EU bank is mandatory and must remain valid for at least six months following license issuance.
  4. Application fees: The entry fee is EUR 30,000. Licenses can be valid for one (EUR 30,000) or two years (EUR 45,000) and must be renewed upon expiry.
  5. Compliance & due diligence: You must provide AML (anti-money laundering) and KYC (know your customer) policies, prove the integrity and technical readiness of your platform, and keep thorough records of all betting transactions for a minimum of five years.

You can access the full requirements and submit applications via the Cyprus Government Portal and the NBA’s website.

Player protection, responsible gambling, and industry standards

Cyprus places strong emphasis on safeguarding consumers and maintaining high-quality services. The NBA imposes:

  • Strict player identification: Operators must verify the identity, age (over 18), address, and email of every player.
  • Due diligence: Extensive KYC and AML processes, including ongoing monitoring and transaction reviews.
  • Player fund management: Operators need robust accounting systems to guarantee timely payments of winnings.
  • Age and accessibility: No minors are allowed to access betting services, and platforms must include accessibility features to comply with EU standards, including the 2024 Accessibility of Products and Services Law.
  • Data security: All operators must strictly adhere to GDPR and Cyprus’ Data Protection Law, protecting players’ personal and financial information.

Non-compliance can lead to fines, suspension, or revocation of the license. The NBA is known for conducting audits and proactively monitoring operators.

Can a Cyprus-licensed betting operator serve international customers?

Cyprus law is silent on whether locally licensed online betting operators can actively target customers outside Cyprus. In practice, a Cyprus-based company can offer permitted services to clients abroad, as long as it respects the laws of the customer’s country. However, offering online betting to people in Cyprus without a local license is expressly forbidden and can result in heavy penalties.

Satellite casinos and special cases

The operation of satellite casinos is a special case. Only the single licensed casino operator on the island (a result of the Cyprus Casino Control Law of 2015) is allowed to run up to four satellite casinos, and online casino services are barred for others. Satellite casino services can be provided to international players where legal, but foreign operators cannot offer such services to Cypriot residents.

Taxation and business outlook

Cyprus remains attractive not only for its regulatory clarity but also for its fiscal benefits. The Cyprus tax benefits regime, with its 12.5% corporate tax and other incentives, reduces the overall cost of doing business in the gaming sector. This, combined with access to the EU market and a progressive legal system, makes Cyprus a competitive choice for both start-up and established gaming and betting businesses.

Final thoughts

Operating in the Cyprus gaming sector requires close attention to the distinction between betting and gambling activities, strict regulatory compliance, and an understanding of the local and EU frameworks. For sports betting operators and related businesses, Cyprus offers a credible, transparent, and business-friendly environment. If your plans include online casinos or slots, you will need to look elsewhere—but for sports betting, Cyprus is a leading jurisdiction with a balanced approach to regulation, innovation, and player protection.

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