Cyprus strengthens oversight as gambling market exceeds €1.3b

Cyprus is preparing the next phase of regulation for its rapidly expanding gambling market after regulated betting turnover surpassed €1.3 billion during 2025. While the country's regulated sector continues to record steady growth, policymakers are increasingly focusing on strengthening supervision, improving consumer protection and adapting legislation to address new technological and cross-border challenges.

The National Betting Authority of Cyprus believes that maintaining a successful and sustainable gambling market requires more than strong financial performance. As online gambling technology evolves and international operators expand across multiple jurisdictions, regulators are preparing reforms designed to improve transparency while preserving Cyprus' attractiveness as a European gaming hub.

Cyprus prepares new regulatory reforms for the gambling market

Cyprus has developed one of the more established regulated betting environments in Europe under the Betting Law of 2019. The legislation currently regulates licensed retail sports betting operators and online sports betting companies through two licensing categories.

Class A licences apply to land-based betting operators while Class B licences cover online sports betting businesses operating legally within Cyprus. Licensed operators contribute financially through a tax of 10 percent on net betting revenue together with an additional statutory contribution of 5 percent.

These statutory contributions support wider public objectives. Four percent is allocated to sports development projects while one percent funds programmes aimed at protecting young people and reducing gambling-related harm.

According to the National Betting Authority, the regulated gambling market continued to grow during 2025 with betting turnover increasing by approximately 8 percent compared with the previous year. Online betting remains the largest segment of the regulated industry although retail betting shops continue to contribute to employment and the national economy.

Despite these positive results, regulators believe legislation must continue evolving to reflect changes in the industry's structure.

Panagiotis Trisokkas, President of the National Betting Authority of Cyprus, said the current regulatory framework has helped establish a stable and well-regulated market. However, he noted that additional reforms are needed as technology suppliers play an increasingly important role within the global gambling industry.

B2B suppliers move into regulatory spotlight

One of the most significant proposals under consideration involves bringing business-to-business gambling technology suppliers under direct regulatory supervision for the first time.

Many companies operating from Cyprus develop gaming platforms, betting software, trading services, risk management tools and other technological solutions used by licensed operators throughout Europe and other regulated markets.

Although these businesses support gambling operators, many are currently outside Cyprus' existing licensing framework because they do not offer betting services directly to consumers.

Authorities now believe this regulatory gap should be addressed.

Under the proposed legislative reforms, B2B gambling technology providers would require dedicated licences issued by the National Betting Authority. The licensing system would allow regulators to examine corporate ownership, governance standards, operational structures and compliance procedures.

The objective is not to increase unnecessary bureaucracy for legitimate businesses. Instead, officials want to improve regulatory oversight while ensuring that Cyprus maintains a competitive environment capable of attracting international investment.

The proposal reflects wider international trends as regulators increasingly recognise that technology providers play an essential role in maintaining the integrity, security and transparency of regulated gambling markets.

Balancing industry growth with stronger consumer protection

While financial growth remains important, Cyprus is placing greater emphasis on responsible gambling and public health initiatives.

A national prevalence study found that approximately 70 percent of adults participated in gambling activities during the previous year. Around 3 percent of participants were classified as experiencing moderate-risk or problem gambling.

These findings have influenced the National Betting Authority's long-term strategy.

Rather than relying solely on enforcement measures, the regulator has adopted a broader public health approach that combines education, prevention, early intervention and access to treatment services.

The authority has consistently argued that reducing gambling-related harm requires cooperation across multiple sectors rather than responsibility resting exclusively with gambling operators.

Government agencies, healthcare professionals, researchers, educational institutions, operators and community organisations all have roles to play in promoting safer gambling environments.

This collaborative approach seeks to preserve consumer choice while ensuring that individuals experiencing gambling-related problems can access support at an early stage.

European taxation proposals raise concerns

Alongside domestic reforms, Cyprus is monitoring wider discussions taking place across the European Union regarding gambling taxation.

Recent proposals by European Parliament Vice President Victor Negrescu suggested introducing an EU-wide gambling tax. Although discussions remain at an early stage, regulators across several jurisdictions have begun assessing the potential impact.

The National Betting Authority has expressed caution regarding any additional financial obligations that could increase operating costs for licensed companies.

Officials argue that excessive taxation may unintentionally weaken regulated businesses while allowing illegal gambling operators to become more competitive because they operate outside licensing requirements and tax systems.

Maintaining a strong regulated sector is considered essential for protecting consumers, collecting public revenue and ensuring compliance with responsible gambling standards.

Cyprus believes existing gambling revenues should continue supporting prevention programmes, education initiatives, research and treatment services rather than imposing additional financial burdens without careful evaluation.

Illegal gambling remains a major international challenge

The gambling industry has become increasingly international, making regulatory cooperation more important than ever.

Illegal gambling websites frequently operate across multiple jurisdictions while cybercrime, financial crime, money laundering risks and technological threats rarely remain confined to one country.

Artificial intelligence is also creating new regulatory considerations, including automated fraud detection, customer monitoring and identity verification. At the same time, regulators must remain alert to potential misuse of emerging technologies by criminal organisations.

Sports integrity presents another growing area of concern as betting markets become increasingly interconnected across national borders.

Cyprus believes effective regulation now depends upon stronger partnerships between gambling regulators, law enforcement agencies, payment service providers, technology companies and sporting organisations.

Sharing intelligence quickly and developing coordinated enforcement strategies are becoming essential tools in combating illegal gambling activities.

International cooperation expected to shape future policy

Industry conferences and regulatory forums continue providing opportunities for authorities to exchange information and discuss emerging risks.

Meetings involving regulators, technology providers and industry stakeholders are expected to focus increasingly on practical cooperation rather than broad policy discussions.

Topics receiving greater attention include digital identity verification, artificial intelligence, financial crime prevention, cybersecurity resilience and faster cross-border information sharing.

The National Betting Authority considers international cooperation one of the most important components of modern gambling regulation because criminal networks frequently exploit differences between national legal systems.

Greater collaboration could improve enforcement while helping regulators respond more quickly to rapidly changing technologies.

Cyprus seeks sustainable long-term development

Cyprus has successfully positioned itself as an attractive jurisdiction for licensed betting operators and gambling technology companies.

The country's combination of modern legislation, regulatory stability and strategic geographic location has supported continued investment in the sector.

However, authorities recognise that sustainable growth depends upon maintaining high regulatory standards.

The proposed expansion of licensing requirements for B2B technology suppliers represents an important step towards strengthening transparency and accountability across the wider gambling ecosystem.

Combined with continued investment in responsible gambling programmes and enhanced international cooperation, these reforms aim to ensure that the gambling market continues developing within a secure and well-regulated environment.

Rather than focusing exclusively on increasing market size, Cyprus is attempting to create a regulatory framework capable of adapting to future technological developments while protecting consumers and supporting legitimate businesses.

Conclusion

Cyprus has entered a new phase in the evolution of its regulated gambling market. Strong financial performance has provided a solid foundation, but regulators are now placing equal emphasis on governance, transparency and long-term sustainability. Planned reforms targeting B2B technology suppliers demonstrate a proactive approach to modern regulation as the industry becomes increasingly digital and internationally connected.

At the same time, responsible gambling, consumer protection and cross-border cooperation remain central priorities. By balancing commercial growth with stronger oversight, Cyprus aims to preserve confidence in its regulated betting sector while ensuring that future expansion does not compromise integrity or public interest. The success of these reforms could strengthen the country's position as a respected European regulatory jurisdiction for years to come.

FAQs

What is changing in Cyprus' gambling regulation?
Cyprus plans to introduce a licensing framework for B2B gambling technology suppliers, expanding regulatory oversight beyond betting operators.

Why is Cyprus regulating B2B gambling suppliers?
Authorities want greater transparency over technology companies that provide platforms, software and services to licensed gambling operators.

How large is Cyprus' regulated gambling market?
The regulated betting market exceeded €1.3 billion in turnover during 2025 according to the National Betting Authority.

What types of betting licences exist in Cyprus?
Cyprus currently issues Class A licences for land-based betting operators and Class B licences for online sports betting operators.

How are gambling taxes used in Cyprus?
Licensed operators pay a 10 percent tax on net betting revenue and a 5 percent statutory contribution that supports sports development and responsible gambling initiatives.

Why is responsible gambling a priority?
Regulators have adopted a public health approach after research showed that a small percentage of adults experience moderate-risk or problem gambling.

What concerns does Cyprus have about an EU-wide gambling tax?
Officials believe additional taxation could place licensed operators at a disadvantage while making illegal gambling operators more competitive.

How does Cyprus address illegal gambling?
The country supports stronger cooperation between regulators, law enforcement agencies, payment providers and technology companies to combat illegal gambling.

Why is international cooperation important for gambling regulation?
Many gambling-related risks, including cybercrime, financial crime and sports integrity issues, extend across national borders and require coordinated action.

What is Cyprus' long-term objective for the gambling sector?
The country aims to maintain a competitive and attractive gambling market while strengthening regulation, consumer protection and transparency.