Cyprus Gambling License

Cyprus in the Online Gambling Ecosystem

Cyprus holds a strategic position bridging Europe, the Middle East, and North Africa. Its political and economic stability, attractive tax regime, and reliable regulatory environment make it an appealing hub for operators aiming for steady growth.

• Currency: Euro (EUR), reducing currency risks in European markets.

• Language: Official language is Greek, but English is widely spoken, facilitating international business.

• EU Membership: Ensures legal protection, capital mobility, and service freedom.

• Proximity to CIS, MENA, and African markets creates opportunities for expansion.

Legal Framework

The Betting Law of 2012, amended in 2019, governs gambling operations in Cyprus and includes two main domains:

• Betting: Fixed-odds and sports betting.

• Casino: Regulated under a separate framework.

The National Betting Authority (NBA) regulates betting operators, while the Cyprus Gaming and Casino Supervision Commission (CGCSC) oversees casino activities, including online casinos, lotteries, and poker.

Important Note: Online casinos and poker are regulated separately from Class B betting licenses. This distinction is crucial if your operations involve casino gaming

Types of Licenses in Cyprus

Class A License – Land-Based Betting

• Purpose: For traditional, physical betting shops.

• Format: Permanent points of sale, usually tied to a specific location.

• Use Case: Required if you plan to open physical betting shops across Cyprus.

Class B License – Online Betting

• Scope: Covers fixed-odds betting, live betting, and betting exchanges.

• Note: Does not include casino games, poker, or virtual slots.

• Advantages:

  • Simpler process compared to casino licensing.

  • Clear feedback and transparency from the regulator.

  • Opportunities to expand into European markets.

Casino and Poker

• Separate License: Required for operating casino games.

• Authority: CGCSC.

• 2025 Status: Online casino licensing is progressing slowly but is promising, with interest from private operators and government initiatives

  Benefits of a Cyprus Gambling License

EU Recognition An EU-recognized license adds credibility to your brand, allowing:

• Partnerships with European vendors and platforms.

• Integration with payment systems with minimal restrictions.

• Increased media and affiliate support in EU markets.

Low Taxation

• Corporate Tax: 12.5% — among the lowest in the EU.

• Dividend or passive income tax: Requires planning and optimization.

Infrastructure Convenience

• Hosting: Access to EU-compliant data centers in Cyprus, Greece, and Israel.

• Banking: Access to European banks serving licensed gambling businesses.

• Payment Gateways: Integration with providers like Skrill, Neteller, VISA, and MasterCard.

Enhanced Reputation Licensing signals trust and reliability to players and partners:

• Builds player confidence.

• Facilitates B2B collaborations.

• Strengthens market positioning.

GDPR and AML Compliance

• GDPR: Stringent personal data protection.

• AML/CTF: Requires KYC procedures, transaction monitoring, and designated AML officer

Requirements for Obtaining a Class B License

• Cyprus Company Incorporation: Must be a locally registered legal entity, typically a Private Limited Company.

• Share Capital: Minimum of €500,000 to ensure financial stability.

• Clean Legal Standing: Directors and shareholders must have a clean criminal record. Sanctions screening is mandatory.

• Financial Audit: Conducted through the Central Bank of Cyprus (CBD).

• Technical Infrastructure: Servers hosted locally or within the EU. Must ensure SSL, backup systems, DDoS protection. Betting and management systems should be certified (e.g., ISO 27001).

• Player Protection Tools: Deposit and loss limits. Self-exclusion options. Risk notifications.

• KYC/AML: Document verification for players. Ongoing transaction monitoring. Anti-money laundering processes.

• Payment Systems: Contracts with reputable gateways. Clear segregation of player funds (segregated accounts).

• Local Representation: Appointment of a compliance officer and possibly legal representative.

License Application Process

Step 1: Company Formation in Cyprus

• Preferred structure: Private Ltd.

• At least one physical director.

• Registered office address required.

• Obtain incorporation documents and certificates.

Step 2: Pre-Consultation with NBA

• Submit a formal pre-application inquiry.

• Present your business concept and scope.

• Discuss requirements, timelines, and documentation.

Step 3: Document Preparation

• Memorandum & Articles of Association

• Certificate of Incorporation

• Business plan (target audience, strategy, competitor analysis)

• Financial projections (minimum 2–3 years)

• Technical system architecture

• AML and responsible gambling policies

• KYC procedures

• Proof of MTI (segregated funds)

• Payment agreements

Step 4: Application Submission

• Submit via NBA’s online portal.

• Pay initial and annual licensing fees:

  • Initial: €40,000–€60,000

  • Annual: €20,000–€40,000

Step 5: NBA Due Diligence

• Review financial documents.

• Background checks on stakeholders.

• Software testing (report generation, odds providers).

• KYC/AML policy audits.

• Timeline: Typically 3–6 months if documents are complete.

Step 6: License Issuance

• Class B license valid for 1 or 2 years.

• Conditions include regular audits and compliance reporting.

• Licensing agreement outlines access, rights, payments.

Post-Licensing Obligations

• Annual financial reports and tax filings

• Yearly external audits (ISO or financial compliance)

• KYC/AML compliance and transaction monitoring

• Responsible gambling policies and staff training

• Use of NBA software for activity logs and reporting

• Continuous liaison with the regulator

• Renewal applications should be submitted 3–6 months in advance

Limitations and Risks

Scope Restrictions

• Casino and poker not covered under Class B; separate CGCSC license required.

• Expansion into casino gaming involves multi-tiered licensing.

Ongoing Compliance

• Requires a dedicated compliance team.

• NBA audits ongoing activities beyond initial application.

Operating Costs

• Registration fee: €40,000–€60,000

• Capital requirement: €500,000

• Annual overhead (office, staff, legal, tech): €200,000–€300,000

• 24/7 tech support, backups, monitoring

Potential Delays

• Regulatory response times can vary.

• Additional document requests may arise.

• Timely planning is essential.

8. Why Work with Licensing Experts

Obtaining a license involves more than paperwork. Legal and consulting support is vital:

• Jurisdiction Analysis: Compare Cyprus with Malta, Estonia, Gibraltar.

• Document Preparation: Business plans, AML policies, contracts, provider selection.

• Regulator Communication: Pre-consultations, strategy alignment.

• Infrastructure Support: Legal address, CI/CD pipeline, system backups.

• Financial Setup: Assistance with bank and PSP account openings.

• License Renewal: Ensure timely submissions and updated documentation.

• Benefits of Expert Assistance:

  • Minimized delays and errors

  • Lower risk of rejection

  • Reduced operational burden

Jurisdiction Comparison

Pre-Launch Preparation

Internal Assessment

• Define legal structure and operational zones.

• Choose betting formats (sports, exchange, live).

• Identify target markets.

Financial Modeling

• P&L scenarios for 3 years.

• CapEx/OpEx planning.

• Break-even analysis.

Technical Setup

• Platform development (custom or SaaS).

• Hosting in EU-certified data centers.

• Payment and AML system integrations.

Legal Documentation

• B2B/B2C contracts

• Terms and privacy policy

Compliance Readiness

• Staff training

• Appointment of compliance officer

• Documentation and audit procedures

Responsible Gambling & Corporate Cultur

• Responsible Gaming

• Deposit and session limits

• Self-exclusion tools

• Collaborations with responsible gaming NGOs

KYC and AML Culture

• Full identity verification

• Fraud detection via transaction patterns

• Mandatory regulator notifications

Data Protection

• Full GDPR compliance

• Data minimization, access control, encryption

Marketing and Expansion

EU-Focused Strategies

• SEO, SEA, PPC

• Affiliate marketing and influencer outreach

Local Adaptation

• Multilingual support (English, Greek)

• Localized customer service

Cross-Market Launches

• Simultaneous rollout in BE, DE, AT, CH

• Advertising license compliance

Software Certification

• NBA may require RNG and provider audits

Renewal and Growth

• License Renewal: Submit application at least 3 months in advance Provide updated reports and audits

• Scaling into Casino: Parallel CGCSC license for casino games and poker Platform upgrades to meet additional standards

Conclusion: A Class B Cyprus license is a strategic choice for online betting operations. With clear procedures, EU credibility, low tax, and regulatory guidance, Cyprus offers a growth-friendly foundation. Partnering with experts ensures efficient execution, long-term compliance, and the ability to scale into broader iGaming sectors.

Next Steps:

• Conduct operational due diligence

• Engage legal/consulting advisors

• Prepare PoC for platform, AML/KYC systems

• Calculate budget (€1.5–2M including CapEx/marketing)

• Explore requirements for future casino expansio