Cyprus as a gaming jurisdiction: Is a license required?

Cyprus has become one of the most talked-about gaming jurisdictions in Europe, and not without reason. With its inviting Mediterranean climate and business-friendly laws, the country is drawing the attention of gaming operators from all around the globe. But what makes Cyprus so appealing for iGaming businesses? And, more importantly, does running a gaming business in Cyprus require a license? If you are considering Cyprus as a base for your betting or gaming operations, here’s what you need to know.

Gaming regulation in Cyprus: The legal landscape

Cyprus is both an EU member state and a major international business hub. This gives companies in the gaming industry access to the whole European market, while also offering competitive tax conditions. The primary regulatory body for gaming and betting is the National Betting Authority (NBA), which operates alongside the Cyprus Gaming and Casino Supervision Commission for land-based casinos. The legal backbone is the Betting Law 37(I)/2019, which sets out the requirements for licensing, financial security, anti-money laundering (AML) compliance, and consumer protection.

Today, there are two main types of gambling licenses in Cyprus:

  • Class A license: For land-based gambling (betting shops, for example) but excludes any form of online betting and horse racing.
  • Class B license: For online betting—but not for online casinos, slots, lotteries, or bingo.

All forms of legal betting—whether in-person or online—require holding the appropriate license from the NBA. Anyone offering betting services to residents of Cyprus without a license is acting illegally, regardless of whether they are located within or outside of Cyprus. You can read more about the requirements and regulatory updates directly on the Cyprus Government Portal.

What kind of gaming is allowed—and what isn’t?

It’s important to note that while Cyprus is welcoming to the betting sector, not all types of gambling are permitted under the Class B online license. The license covers:

  • Sports betting
  • Exchange betting
  • Virtual sports

However, online casino games (such as slots and table games), lotteries, spread betting, pool betting, dog racing, and crypto (Bitcoin) gambling are not allowed under the Class B license. Land-based casino operations, in turn, are separately regulated by the Cyprus Gaming and Casino Supervision Commission.

So, if you want to launch a classic online casino, Cyprus is not the jurisdiction for that. But if your business is focused on online sports betting or related services, Cyprus offers a solid and reliable option.

Licensing requirements: What does it take to get a Cyprus gaming license?

If you are aiming for a Class B online betting license, the process is detailed and well-structured. Here are the key requirements applicants must meet:

  • Establish a Cyprus company—or a branch of a foreign company—with its main activity being betting.
  • Paid-up share capital: At least €500,000.
  • Bank guarantee: €550,000 from a Cyprus bank or another EU institution, valid for six months after the license is granted.
  • Physical presence: If the parent company is foreign, appoint a local director based in Cyprus.
  • Player funds: All player funds must be held in a Cyprus bank account.
  • Compliance systems: Robust AML, player verification, data protection (GDPR), and responsible gambling frameworks.
  • Reporting & audits: Regular audits, backup server infrastructure in Cyprus linked to NBA systems, and ongoing compliance reporting.

The licensing fees are €30,000 for one year or €45,000 for two years—non-refundable if the application is withdrawn, although 75% will be returned if the application is rejected.

Special compliance notes: Player safety and anti-money laundering

Cyprus's regulatory structure focuses heavily on player protection. Operators must:

  • Conduct strict Know Your Customer (KYC) procedures—verify the age, identity, residential address, and email address of every player.
  • Enforce minimum age (18 years) for all gambling activities.
  • Provide clear ways for players to self-exclude and use responsible gambling limits.

Cyprus takes anti-money laundering seriously. Operators must monitor all transactions and report any suspicious activity. Any transaction of €2,000 or above must trigger due diligence compliance. Failure to comply can result in heavy fines or license termination.

Taxes and the business case: Why Cyprus is attractive

Many operators choose Cyprus not just for its EU location but for its advantageous tax regime. The country offers a corporate income tax rate of just 12.5%, one of the lowest in the EU. Additionally, there’s no withholding tax on dividends, interest, or most royalties paid to non-residents. These Cyprus tax benefits are a major draw.

Licensed bookmakers pay a fixed 13% tax on betting revenues (10% betting tax, 3% contribution to the NBA) as well as the normal corporate income tax. While the 13% gaming tax may seem slightly higher than some other European locations, the overall framework for companies—especially those using a well-designed global holding structure in 2025—can lead to significant efficiency.

What about regulation and enforcement?

Cyprus’s NBA actively audits licensees, manages a national register of licensed operators, and works closely with law enforcement to detect and block illegal betting services. The regulation is strict but business-focused—designed to favor legitimate operators who are ready to meet EU standards.

Violations can result in administrative fines, license suspension, or revocation. It’s not just about getting a license, but also maintaining ongoing compliance.

Practical challenges: What to expect in the application process

Getting a Cyprus gaming license is not a simple paperwork exercise. Prepare for:

  • Collecting and documenting company ownership and structure.
  • Demonstrating strong financial health and security of player funds.
  • Appointing suitable directors and compliance officers.
  • Setting up local banking, payment, and data infrastructure.
  • Building systems to meet technical, anti-fraud, and AML requirements.

Typically, the full application and approval process can take from six to nine months. Professional assistance is often essential.

Can Cyprus-licensed operators target players outside Cyprus?

The law is clear that services can be offered to international players—provided that doing so does not violate the laws of those players’ home countries. However, for residents of Cyprus, only NBA-licensed operators are legal. A Class B Cyprus license may boost your reputation and open new markets, but make sure you also comply with all local regulations in target jurisdictions abroad.

Final thoughts: Is Cyprus the right jurisdiction for your gaming business?

Cyprus is a compelling location for online sports betting and related gaming ventures. The country offers a balanced mix of tax efficiency, business transparency, and EU-wide access, coupled with strict but clear regulation. However, a proper license is mandatory—for both land-based and online betting activities. Businesses not prepared for robust compliance or looking to launch full-service online casinos will need to look elsewhere.

If your business plan aligns with Cyprus’s strengths—sports betting, solid corporate infrastructure, and EU market reach—getting licensed in Cyprus is worth serious consideration. Be ready for a thorough process, but also for a highly credible spot in the global gaming industry.

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