BETTING LICENSE IN CYPRUS
Cyprus is still one of the strongest world trade centers due to its attendance of forex regulators and alluring tax law, which can even provide non-tax residences with a 0% tax on dividends. In 2012 Cyprus passed “The Betting Law 2012”, which established two fundamental changes in the betting business.
- First of all, the aforementioned law established a legal framework for the activity of betting operators and bookmakers.
- Secondly, this law proclaimed the National Betting Academy, that became a new Cyprus governmental body with an exclusive power to control all the betting and bookmakers activities, as well as the practice of gambling operators.
Types of licenses
“The Betting Law” imposes 2 types of licenses:
Class A – Manages offline sports betting – this applies only to the bookmakers with real offices, except horse racing or other services regulated under the class B license.
Class B – Manages online activities, except slot machines and casinos lotteries.
Each person who wants to obtain A or B license has to meet the following requirements:
- Cyprus stocks availability;
- Foreign registration;
- Presence of a division of a foreign company in Cyprus with a primary activity in betting. Partnership with a local company is also permissible. The minimal share capital of a foreign or local business is EUR 500,000;
- Cyprus or other EU bank warranty for at least EUR 550,000. The warranty should expire in 6 months after obtaining the license;
- Sufficient resources for players payments;
- Acceptable accounting system for the chosen service;
- Compliance with the “Betting law of 2012” in part of players protection.
TERM and COST of the license
The applicant can get a license only for 1 or for 2 years. After expiration, it is possible to apply to NBA for its renewal. NBA reserves a right to revoke the license at any time, if its owner violates current law (Article 24)
The license is issue only after fee payment, which depends on the license duration:
- EUR 30,000 for 1 year license;
- EUR 45,000 for 2 years.
Class B license should be paid only via debit card / credit card / any other electronic payment. Cash payment is prohibit (Article 58(1)).
After receiving the class B license the licensee is obliged to launch an account in Cyprus bank or other institution that is allow to provide banking services on Cyprus. Class B licensees have to analyze a player’s current account before accepting his bet. If there are no enough funds to pay the rate, a licensee has to reject the bet.
A combined rate of 13%, which consist of 10% of net revenue, 2% assigned to the Cyprus sport Federations and 1% for extra gambling programmers (Article 71).
All the data should be stored exclusively in Cyprus server system. The server itself has to be connect to the government electronic system in order to pass the data on transactions. An address of the website which accepts players bets has to be ended with LTD of “.com.cy”.
Eternity Law international will gladly help you with betting license, and our specialists will answer all your questions. Take advantage of our many years of practical experience – save your time and your money.
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