Cyprus Gambling License
Online gambling is now a popular and profitable business, and the Government of Cyprus has put in place regulations to facilitate the acquisition of online gambling licenses.
Types of gambling licenses in Cyprus
Class A – regulates betting on sports games. Such licenses are issued to betting offices. The license allows you to accept all bets (except for racing). Not valid online.
Class B – regulates online bookmakers. Does not apply to slot machines, lotteries and casinos (physical offices).
Requirements for obtaining a Class A or Class B license:
- The applicant must own shares in Cyprus.
- Registration of a company in Cyprus whose main activity is gambling.
- High level of solvency of the company for payment to players.
- The organization must have a system of accounting rates.
- Ability to protect players according to the rules set out in the law «About bets 2012».
- If the company is not registered in Cyprus, it is necessary to open a subsidiary or enter into a partnership with a Cypriot company. Such a company must have a registered capital of at least 500,000 EUR. The term of the deposit guarantee is valid for six months after receiving the license.
PACKAGE «COMPANY & GAMBLING LICENSE CYPRUS» |
55,000 EUR |
- Regulator bodies: Cyprus Gaming and Casino Supervision Commission and National Betting Authority (NBA)
- The NBA is responsible for examining applications, licensing, and supervising prospective betting shops and online betting operators.
- Betting tax: 13% on the net revenue
- Allowed to offer betting services in any third nation
- Time frame: 2–3 months
Types of Cyprus Gambling License
Class A – land-based betting excl. horse racing
Class B – online betting
Steps for obtaining a gaming license in Cyprus
- Register a Company
- Open a corporate bank account
- Prepare and submit licence documents
- Comply with NBA requirements
- Prohibition of access to gambling to people under 18 years of age.
- The applicant company is physically present in Cyprus or, if registered overseas, is in a partnership with a Cypriot company, and its main business activity is placing bets. Both foreign and Cypriot businesses are subject to the minimum capital requirement.
- Clean criminal record
- Bank guarantee in the amount of EUR 550,000 from a bank in Cyprus or another EU member state that expires six months after receiving the license.
- Suitable control and accounting system for the provision of the services
- Continuing compliance with NBA and AML Legislation
- Government application fees start from €30,000 for a year and €45,000 for two years.
- The applicant company is physically present in Cyprus or, if registered overseas, is in a partnership with a Cypriot company, and its main business activity is placing bets. Both foreign and Cypriot businesses are subject to the minimum capital requirement.
- Clean criminal record
- Bank guarantee in the amount of EUR 550,000 from a bank in Cyprus or another EU member state that expires six months after receiving the license
- Suitable control and accounting system for the provision of the services
- Continuing compliance with NBA and AML Legislation
- Government application fees start from €30,000 for a year and €45,000 for two years
- Consulting on relevant legislation and assisting to select proper categories of activities and Class
- Guidance on providing all the necessary documentation and certificates
- Drafting licence application on client’s behalf
- Drafting and Submission of Personal Declaration Form
- Drafting and Submission of Bank Guarantee
- Drafting and Submission of Business Plan
- Assistance with server Hosting-Leasing and server colocation
- Preparation of technical documentations
- Assistance with managed data centre services
- Assistance and compliance with NBA Technical Audit
- Assistance and guidance on setting up accounting replication with the Cyprus authorities
Legal opinion on financial projects in Cyprus | from 1,500 EUR |
Legal Services for Your Gambling Project | from 1,500 EUR |
Biggest gambling companies registered in Cyprus
Gambling taxation in Cyprus
The combined rate tax is calculated at 13%: net profit – 10%, 3% – other taxes. Sports federations account for 2% of these 3% and 1% for betting programs (article 71 of the Law on Rates 2012).
If you are interested in detailed individual advice on getting a gambling license in Cyprus, contact our lawyers and get detailed advice today.
Advantages of the Cyprus Gaming License
Cyprus’s stable economic environment, thorough but not over-the-top regulations, and high per capita income are among the reasons the country is known as the hub for international investments, including gaming. While its regulatory frameworks may be slightly more flexible than in other European countries, Cyprus duly adopts all relevant EU directives and strives to maintain high standards and safety across the gaming industry.
While in the context of other European countries the Gaming Tax in Cyprus isn’t the most favorable (13%), other tax rates are very competitive. A lot of companies choose Cyprus as their home jurisdiction due to the Corporate Income Tax which is only 12,5%. Besides, there’s no Withholding Tax on dividends and interest transferred to non-residents of Cyprus and royalties paid to non-residents of Cyprus for rights not used in Cyprus. Also, Cyprus has over 65 international agreements on the elimination of double taxation, the aim of which is to promote cross-border investments, and reduce the tax burden for international entrepreneurs whose companies are tax residents in Cyprus.
Furthermore, you’ll be pleased to learn that the Cypriot banking system is one of the most reliable banking systems in the world as the Central Bank of Cyprus regulates it in line with the EU standards. Cypriot banks offer all the essential services in English and other most popular languages – international transfers, loans and business cards, insurance, internet banking, and more. In Cyprus, banks take confidentiality matters seriously and therefore they don’t share information about their clients with third parties without clients’ consent or a court order which attracts entrepreneurs valuing privacy and security, as well as the stability offered by the EU banks.
Advantages
Time to obtain a Gambling licence in Cyprus 2-3 months
Allowed to offer betting services in any third nation
Over 65 international agreements on the elimination of double taxation
Possibility of participation from 1 to 50 shareholders
Gaming Regulations in Cyprus
In Cyprus, online and offline sports betting was legalized in 2012 under the Betting Law of 2012 which provided for the establishment of the NBA, responsible for the enforcement of the gaming regulatory framework. Another key piece of legislation is the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2018, the purpose of which is to protect the financial market from criminal activities by detecting and reporting suspicious business transactions.
If you obtain a gaming license in Cyprus, you’ll develop a strong relationship with the NBA as it’s authorized to conduct the following regulatory activities:
- To inspect Class A and Class B bookmakers, licensed authorized representatives, and holders of licensed premises in order to ascertain that they comply with the terms of their respective licenses, and applicable regulations
- When examining licensing applications, the authority can decide to request the applicant to attend personally and/or with a lawyer
- To determine procedures for submitting and analyzing complaints to the authority or Class A or Class B bookmakers or authorized representatives
- To issue directives to licensees in order to apply preventative measures to combat money laundering, in accordance with AML/CFT legislation, in cooperation with the Advisory Authority for Combating Money Laundering and Terrorist Financing
- To carry out inspections on non-licensed premises, in cooperation with the competent prosecution authorities, and to obtain the relevant judicial orders to close premises of which there are reasonable suspicions that unlawful betting is being carried out
- To draft and maintain a code of practice in relation to advertising bets
- To evaluate the results of the tax status in relation to bets and to formulate relevant suggestions
- To electronically notify internet service providers about every internet website address through which unlicensed or unlawful betting services are offered
- To collect contributions from Class A and Class B licensed bookmakers (it amounts to 3% of the net proceeds from bets for the corresponding accounting period which is part of the 13% Gaming Tax)
The following rules of the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2018 are worth noting:
- Gaming businesses are obligated to share their clients’ financial AML/CFT-related data with respective national authorities, responsible for the gathering, evaluation, and analysis of suspicious business transactions in line with AML/CFT regulations
- Gaming businesses are obligated to apply customer due diligence measures upon the collection of winnings, the wagering of a stake, or both, when carrying out transactions amounting to 2,000 EUR or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked
- Gaming businesses must apply adequate and appropriate policies, controls, and procedures, which are proportionate to their nature and size in order to mitigate and manage the risks of money laundering and terrorist financing which includes consistent record-keeping and a detailed examination of each transaction that might be showing signs of criminal activities
GAMBLING LICENSE IN cyprus
Period for consideration |
2-3 months | Annual fee for supervision | from 2,000 € |
State fee for application |
from 30,000 € | Local staff member | No |
Required share capital | 500,000 € | Physical office | No |
Corporate income tax | 13% | Accounting audit | Required |
Types of Cyprus Gaming Licenses
The NBA maintains a register of all Cypriot gaming licensees that contains the information included in the application and publishes their list on its website.
The Betting Law of 2012 distinguishes the following types of licenses:
- Class A bookmaker’s license authorizing the provision of carrying out betting services within licensed premises excluding Class B betting services and horse racing betting
- Class B bookmaker’s license authorizing the provision of electronic betting services except for slot machines, online casino games of chance provided with a direct link, and electronic horse racing
- Class A bookmaker’s authorized representative license authorizing the provision of betting services on behalf of a Class A bookmaker within licensed premises excluding Class B betting services and horse racing betting
Fees for granting a license are as follows:
- For a Class A or Class B bookmaker, a one-year license costs 30,000 EUR, and a two-year license costs 45,000 EUR
- For a Class A bookmaker’s authorized representative, a one-year license costs 2,000 EUR, and a two-year license costs 3,000 EUR
- For a Class A bookmaker or a Class A bookmaker’s authorized representative, the provision of betting services at two or more premises costs the following additional amounts
- 2,000 EUR per additional premise for a one-year license
- 3,000 EUR per additional premise for a two-year license
If you were to apply for or renew a gaming license in Cyprus, you’d be required to pay the fees at the time of submitting the application. In the case of a rejected application, 75% of the paid fees are refunded which is very advantageous compared to other European jurisdictions.
Class A and Class B Bookmaker’s License
To obtain either a Class A or a Class B bookmaker’s license in Cyprus, you’ll first have to open a local company with shares. Pursuant to the Betting Law of 2012, an application for such a license can only be submitted by a company with shares, established either in Cyprus or abroad and if it is an overseas company, it must have a branch in Cyprus, and its main activity must be to facilitate bets and the company’s issued and paid up share capital must be at least 500,000 EUR.
An application should be accompanied by a bank guarantee from a commercial bank conducting banking business in Cyprus or in another EU country or a cooperative bank. The guarantee is 550,000 EUR and it’s valid for 6 months following the expiry of the granted license. The bank guarantee obligates the bank to pay any amount the licensee fails to pay to a player who participated in a bet and won, taxes to the Cypriot Government, and contributions to the NBA.
Importantly, Class B license applicants are required to accompany their application with the submission of the information about the installment of the backup server in Cyprus which must be simultaneously linked with the main facilitator and which shall back up in real-time all the information required by the NBA. Also, the use and technical specifications of the hardware must be established and can be revised by the NBA at any time.
Class A Bookmaker’s Authorized Representative License
An application for a Class A bookmaker’s authorized representative license can be submitted by any natural person or company with shares that was established in Cyprus provided that its main activity is to facilitate betting on behalf and on account of a Class A licensed bookmaker. The authorized representative has to present a written agreement to the NBA between oneself and the Class A licensed bookmaker, in which it is explicitly stated that the representative shall provide betting services, as a representative for and on behalf of the Class A licensed bookmaker.
The Class A Bookmaker’s Authorized Representative License ceases to be valid in the following cases:
- Automatically when a Class A bookmaker’s license is revoked for and on behalf of the authorized representative who is conducting the betting business
- Automatically when the license of a Class A bookmaker is suspended, and for as long as the suspension lasts, for and on behalf of the authorized representative who is conducting the betting business
- Following the written notice to the NBA with which the bookmaker or authorized representative terminates the association between them, provided that the license ceases automatically to be valid from the date the said notice is communicated to the NBA
How to Establish a Gaming Company in Cyprus
The process of establishing a new company with shares in Cyprus is quite straightforward and may take only 4-5 business days. The most common legal form of a business in Cyprus is a Private Company Limited by Shares (Ltd) which can be founded by non-resident foreigners pursuant to the Cyprus Companies Law. It must have 1-50 shareholders who may not be required to visit Cyprus to incorporate the company – please contact our team here at Regulated United Europe (RUE) to learn more about this option. A Private Company Limited by Shares (Ltd) must have at least one director and a secretary.
To establish a new gaming company in Cyprus, take the following steps:
- Have the company’s name approved by the Registrar of Companies (RCOR)
- Prepare all required documents – from personal to business documentation, our team can assist you with the preparation
- Open a corporate bank account
- Transfer authorized share capital (at least 500,000 EUR)
- Appoint the company’s directors and a secretary
- Obtain a registered office address in Cyprus
- Pay company registration fees to the RCOR (165 EUR for regular registration and an additional 100 EUR for an accelerated process)
- Submit an application along with the required documents to the RCOR
- Obtain corporate certificates from the RCOR
Ensure that you have the following documents prepared for submission:
- A Memorandum of Association
- Articles of Association
- A business plan
- Certified copies of the passports of the founders and directors
- A declaration of the company’s registered office address
- A declaration of the director and secretary
- A solemn declaration of the witness of signatures, in case of online registration
If you wish to have your Memorandum of Association and Articles of Association created in a language other than Greek, you will need a certified translation by a sworn translator in Cyprus. Our team here at Regulated United Europe (RUE) can also arrange this service for you.
Cyprus
Capital |
Population |
Currency |
GDP |
Nicosia | 1,244,188 | EUR | $29,535 |
The Process of Applying for a License
Only when you have a company with shares incorporated in Cyprus, you can apply for a Cyprus gaming license. The application for the issue or renewal of any type of license is submitted with the payment of the fixed fee to the NBA. If the same person applies for the issue of a Class A and Class B bookmaker’s license, the applications are submitted separately and processed as separate applications.
The application must include the following information:
- The type of license for which it’s submitted
- The postal address in Cyprus to which any correspondence is to be sent
- The identity details and place of residence of the ultimate beneficiary, officer, and holder of a significant interest in the case of a natural person or authorized representative, when the application is submitted by a legal person
- The terms and regulations on the basis of which the applicant intends to provide betting services to the players
- Financial information
- Participation in lawful activities, including but not restricted, to any interest in any other commercial activity
- A description of appropriate internal AML/CFT procedures
- Certificates of criminal record of shareholders, directors, and ultimate beneficiaries
- Information about the financial and other interests of ultimate beneficiaries, directors, and holders of significant interest of the legal person
It’s important to note that gaming licenses aren’t issued in the following cases:
- The applicant has been convicted of a related offense by a competent court
- An applicant is a natural person under 25 years of age
Lastly, you should also note that none of the granted licenses can be transferred or assigned in any manner to any other person. Applications to renew a license are submitted 3 months prior to the date of the expiry of the license. And while your license is still valid, the NBA can amend, cancel or introduce new conditions for any type of license in order to improve the enforcement of the relevant regulations. In such cases, the authority must notify a licensee in writing in advance and justify the change of conditions. That said, you shouldn’t fear regulatory volatility as the overall Cypriot regulatory framework is utterly fair for entrepreneurs and consumers.
Regulated United Europe (RUE) will be pleased to support you in incorporating a Cypriot company and obtaining a gaming license in Cyprus. With dedicated legal advisors, tax experts, and financial accountants at your side, you will find the incorporation and application processes easy, frictionless, and transparent.
Also, lawyers from Regulated United Europe provide legal services for obtaining a crypto license in Europe.
“Are you contemplating the initiation of your business in Cyprus? This might be an ideal opportunity for you. Contact me today, and let’s engage in a thorough conversation regarding your project.”
FREQUENTLY ASKED QUESTIONS
In Cyprus, do I need a license?
Government of Cyprus regulations facilitate the acquisition of licenses for online gambling, which has become a popular and profitable industry.
Do licenses come in different types?
Sports betting is regulated under Class A. A betting office is required to obtain such a license. The license allows you to accept all bets (except for racing). Online redemption is not available.
Regulates online bookmakers in Class B. Lotteries, casinos, and slot machines are not covered.
Are there any requirements?
To obtain a Class A or Class B license, you must meet the following requirements:
- Cyprus shares must be owned by the applicant.
- The registration of a gambling-related company in Cyprus.
- The company is able to pay its players on time due to its high level of solvency.
- Accounting rates must be established by the organization.
- Players are protected under the laws "About Bets 2012".
- A subsidiary or partnership with a Cypriot company is required if the company is not registered in Cyprus. The registered capital of such a company must be at least 500,000 euros. Once the license is issued, the deposit guarantee will expire after six months.
There is a one- or two-year license period. It may be possible to extend the period in some cases.
Can you tell me what the requirements are for an applicant?
- Under 18-year-olds are prohibited from accessing gambling.
- There is a physical presence of the applicant company in Cyprus or a partnership with a Cypriot company if the applicant is registered overseas, and its primary business activity is to place bets. There is a minimum capital requirement for both foreign and Cypriot businesses.
- Criminal history that is clean
- Six months after receiving the license, a bank guarantee of EUR 550,000 is required from a bank in Cyprus or another EU member state.
- The provision of the services should be controlled and accounted for in a suitable manner
- Keeping up with NBA and Anti-Money Laundering regulations
- A one-year government application costs €30,000, and a two-year application costs €45,000.
Can you tell me about the taxation of gambling in Cyprus?
Net profits are taxed at 10% and other taxes are taxed at 3%. The law on rates 2012 specifies that 2% of this 3% comes from sports federations, while 1% comes from betting programs.
Are gambling activities licensed in Cyprus?
Yes. The Government of Cyprus has put in place regulations to facilitate the acquisition of online gambling licenses. Depending on the business activities that a gambling company intends to conduct, it may fall into one of the following classes:
Class A –betting on sports games. This license allows all bets (except for racing). Not valid online.
Class B – regulates online bookmakers. Does not apply to slot machines, lotteries and casinos (physical offices).
What is the process of getting a gambling license in Cyprus?
In order to obtain a gambling license in Cyprus, applicants must complete the following four steps:
- Register a Company (or subsidiary) in Cyprus
- Open a corporate bank account
- Prepare and submit license documents
- Align and comply with NBA requirements
How does a Cyprus gambling license work?
In Cyprus, the regulatory authority responsible for issuing and overseeing gambling licenses is the National Betting Authority (NBA). To obtain a gambling license in Cyprus, applicants must adhere to the requirements and procedures set forth by the NBA.
Here are some key points to consider:
- Eligibility. The NBA accepts applications from both local and international entities interested in offering gambling services in Cyprus.
- Types of Licenses. The NBA issues various types of licenses, including online betting licenses, online casino licenses, and other specific licenses for different types of gambling activities. Each license has its own set of requirements and conditions.
- Application Process. Applicants must address the NBA, providing detailed information about their company, ownership structure, financial stability, business plan, and the gambling services they intend to offer.
- Compliance Requirements. Applicants must demonstrate compliance with strict anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. They are also required to implement responsible gambling measures and safeguards to protect players.
- Financial Obligations. License holders must pay an application fee and annual fees to the NBA. The amount of these fees may vary depending on the type of license and the scale of operations.
- Technical Standards. Applicants need to meet certain technical standards obtain a license.
- Ongoing Compliance and Monitoring. Once a license is issued, its holder will face ongoing monitoring and compliance checks by the NBA, including regular audits.
Is getting a license a long process?
The application process for a gambling license in Cyprus typically takes 2-3 months.
Can a license be obtained without a bank account?
No. Opening a bank account is a formal requirement for obtaining a gambling license in Cyprus. It is also a requirement for establishing a business – another item on the checklist for a gambling license application.
What is the duration of a gambling license?
A gambling license issued by the National Betting Authority (NBA) in Cyprus is typically valid for a period of one year. After the initial license is granted, service providers are required to renew their license annually by submitting the necessary documentation and paying the applicable fees.
What are the benefits of getting a gambling license in Cyprus?
Obtaining a gambling license in Cyprus offers both national and cross-border benefits. Some of the key advantages include:
- Legitimacy and Credibility. Holding a gambling license from a reputable regulatory authority like the National Betting Authority (NBA) in Cyprus enhances the legitimacy and credibility of the operator.
- Access to the Cyprus Market. Cyprus has a population of over a million people, and obtaining a gambling license gives service providers access to a significant customer base.
- European Union Access. Cyprus is a member state of the European Union, and a gambling license gives access to the wider European market. License holders may expand their business operations and reach customers in other EU countries (subject to local regulations).
- Business Flexibility. The gambling license in Cyprus covers various forms of gambling activities (online betting, online casinos etc.).
- Responsible Gambling Measures. Cyprus promotes responsible gambling practices, and license holders need to reflect that. Commitment to responsible gambling can enhance the operator's reputation and attract socially conscious players.
Can gambling companies in Cyprus be owned by non-Cyprus residents?
Yes, gambling companies in Cyprus can be owned by non-Cyprus residents because the National Betting Authority (NBA) of Cyprus does not impose restrictions on the ownership of gambling companies based on the residency or nationality of the owners.
Even so, all gambling companies are required to meet national regulatory requirements and obtain the necessary licenses from the NBA.
Are there any difficulties in obtaining a gambling license in Cyprus?
The most prominent challenge to aspiring license holders are strict regulations that must be met unconditionally in order to be granted a license. Further challenges involve financial commitments (license, operating and administrative fees, etc.) and changing regulatory landscape that both new and existing license holders must adapt to.
Are gambling companies in Cyprus audited?
Yes. Technical NBA audit is an obligatory step in the application process for all gambling companies seeking to acquire a license in Cyprus.
License holders are subject to further audits and ongoing monitoring by the NBA as well.
Can a Cyprus gambling company have directors who are not local residents?
Yes. There are no specific requirements in Cyprus that require the directors of a gambling company to be residents of the country.
Even so, all gambling companies are required to meet national regulatory requirements and obtain the necessary licenses from the NBA.
Are there any measures in place in Cyprus to prevent money laundering and the financing of terrorism?
Yes. The NBA is responsible for supervising gambling operators and ensuring compliance with AML regulations. The NBA conducts regular audits and inspections to assess the effectiveness of operators' AML measures and may impose penalties for non-compliance.
What is the minimum number of members/directors of a Cyprus company?
The most common legal form of a business in Cyprus is a Private Company Limited by Shares (Ltd) which can be founded by non-resident foreigners pursuant to the Cyprus Companies Law. An Ltd must have at least one director and a secretary.
What is the size of the authorized capital of a company that can apply for a gambling license in Cyprus?
Authorized share capital for companies applying for a Cyprus gambling license is at least 500,000 euros.
What taxes must a Cyprus company with a gambling license pay?
A Cyprus company with a gambling license must pay both corporate taxes and specific taxes related to gambling activities. Here are the key taxes that a Cyprus company with a gambling license may be required to pay:
Corporate Income Tax: a flat rate of 12.5% on net profit.
Special Defense Contribution (SDC): a tax levied on specific types of income, including interest income, dividend income, and rental income. Depending on the nature of the company's operations and the sources of income, certain portions of the company's revenue may be subject to the SDC.
Betting Duty: a specific tax on the gross revenue generated from betting activities. The rate varies depending on the type of betting.
Social Insurance Contributions: calculated based on the employee's gross income and the applicable contribution rates.
What is the annual license fee for a gambling company in Cyprus?
The annual license fee for a gambling company in Cyprus may vary depending on the type of license and the scale of operations. Government application fees start from €30,000 for a year and €45,000 for two years.
Among the advantages, what are they?
There are many reasons why Cyprus is a hub for international investments, including gaming, including its stable economic environment and strict but not excessive regulations. The gaming industry in Cyprus adheres to all relevant EU directives and maintains high standards and safety despite its regulatory frameworks being slightly more flexible than other European countries.
Cypriot Gaming Tax (13% isn't the most favorable in comparison with other European countries, but other taxes are very competitive. Due to Cyprus's low corporate income tax rate of 12,5%, many companies choose Cyprus as their home jurisdiction. Apart from that, dividends and interest are not subject to Withholding Tax on dividends and interest paid to non-residents of Cyprus as well as royalties paid to non-residents for rights that are not used in Cyprus. Cyprus has also signed 65 international agreements to eliminate double taxation, with the intention of encouraging cross-border investment and reducing tax burdens for international entrepreneurs whose companies are tax residents here.
Can you tell me what the regulations are?
In Cyprus, the NBA is authorized to perform the following regulatory activities if you obtain a gaming license:
- Ascertain that licensed authorized representatives, licensed bookmakers, and holders of licensed premises comply with the terms of their respective licenses.
- License applications can be examined by the licensing authority either personally or with the assistance of a lawyer
- Establish procedures for submitting and analyzing complaints to the authority or to Class A and Class B bookmakers
- As a means of combating money laundering, the Advisory Authority for Combating Money Laundering and Terrorist Financing issues directives to licensees in compliance with AML/CFT legislation
- Cooperating with the prosecution authorities to inspect non-licensed premises and obtaining the appropriate judicial orders to close those premises where there is reasonable suspicion that illegal betting is taking place
- The purpose of the code of practice is to draft a code of conduct for advertising bets and to maintain it
- Formulizing relevant recommendations regarding tax status in relation to bets
- Every unlicensed or unlawful betting website address should be electronically notified to internet service providers
- In addition to the 13% Gaming Tax, Class A and Class B licensed bookies are required to collect 3% of their net profits from bets in corresponding accounting periods.
Could you please let me know if there is anything else I need to know?
- In accordance with AML/CFT regulations, gaming businesses must divulge their clients' financial AML/CFT data to their respective national authorities.
- Customer due diligence measures must be applied by gaming businesses when collecting winnings, wagering stakes, or both, when carrying out transactions of 2,000 EUR or more, whether the transaction is carried out in a single operation or in several operations that appear to be linked.
- In order to mitigate and manage the risks of money laundering and terrorist financing, gaming businesses must adopt policies, controls, and procedures that are appropriate and proportionate to their nature and size. Consistent record-keeping and an examination of transactions that may reveal signs of criminal activity are among the measures that must be taken.
How are gaming licenses classified?
Cypriot gaming licensees are listed on the NBA's website in a register that contains the information enclosed in their applications.
Licenses are differentiated according to the Betting Law of 2012 as follows:
- Licensed to provide betting services within licensed premises, but not to provide horse racing betting or Class B betting services
- An electronic betting license for bookmakers except for slot machines, online casino games of chance, and electronic horse racing provided with a direct link.
- It is a license issued to a representative of a bookmaker class B that allows him to provide betting services on behalf of a class B bookmaker within licensed premises but not on behalf of a class B bookmaker.
What are the requirements for obtaining a Class A or Class B bookmaker's license?
You must first open a local company with shares in order to obtain a Class A or Class B bookmaker's license in Cyprus. A company with shares, established in Cyprus or abroad, may only apply for such a license in accordance with the Betting Law of 2012. In the case of an overseas company, it must have a branch in Cyprus and its main activity must be to facilitate bets. The company's issued and paid up share capital must be at least 500,000 Euros.
In addition to the application, a bank guarantee from a Cyprus-based commercial bank or a cooperative bank should accompany it. After the granted license expires, the guarantee has a validity period of 6 months. The bank guarantee obligates the bank to pay any amount the licensee fails to pay to a player who participated in a bet and won, taxes to the Cypriot Government, and contributions to the NBA.
What is the process for obtaining a license as an authorized representative for a Class A bookmaker?
A natural person or company with shares established in Cyprus may apply for a Class A bookmaker's authorized representative license, provided its main activity is to facilitate betting on behalf and for a Class A licensed bookmaker. In order to represent the Class A licensed bookmaker, the authorized representative must present the NBA with a written agreement that explicitly states that they will provide betting services, on behalf of the licensed bookmaker, in the agreement.
Cyprus company formation: what are the steps?
New companies with shares can be established in Cyprus in just 4-5 business days. Cyprus's Companies Law allows non-resident foreigners to establish a private company limited by shares (Ltd), which is the most common legal form of business in Cyprus.
Steps for setting up a new gaming company in Cyprus are as follows:
- Obtain approval from the Registrar of Companies (RCOR) for the company's name.
- The team at our company can help you prepare all the necessary documents, whether they are personal or business documents
- Create an account for your company
- A minimum of 500,000 euros must be transferred as authorized capital
- Elect a director and secretary for the company
- Register your business in Cyprus
- For regular registration, you need to pay 165 EUR, and for accelerated registration, you need to pay another 100 EUR.
- Application and required documents must be submitted to RCOR
- The RCOR can provide corporate certificates
How should I prepare my documents?
- A Memorandum of Association
- Articles of Association
- Business plans
- A copy of the directors' and founders' passports
- Registered office address of a company
- Directors' and secretaries' declarations
- When registering online, a solemn declaration from the witness of signatures is required
In order to apply for a license, what information must be provided?
Here are the requirements for the application:
- The type of license for which it’s submitted
- Any correspondence should be sent to the following postal address in Cyprus
- An application filed by a legal entity must include the name and address of the ultimate beneficiary, officer, and holder of a significant interest
- Players will be able to wager on the terms and regulations set forth by the applicant
- An overview of finances
- An interest in any other commercial activity that is lawful, including, but not limited to, participation in lawful activities
- Procedures for detecting and preventing AML/CFT within an organization
- A copy of each shareholder's, director's, and ultimate beneficiary's criminal records
- A description of the financial and other interests of the legal person's beneficiaries, directors, and significant shareholders
Could you please let me know if there is anything else I need to know?
The following situations aren't eligible for gaming licenses:
- A competent court has convicted the applicant of a related offense
- Under 25-year-old applicants are natural persons
Furthermore, all licenses granted are non-transferrable or assignable. A license renewal application must be submitted three months prior to the license expiration date. In order to improve the enforcement of relevant regulations, the NBA can amend, cancel, or introduce new conditions for any type of license while it is still valid. A licensee must be notified in advance and justified in writing in such cases. However, despite the volatility of the regulatory framework, Cypriot entrepreneurs and consumers shouldn't fear it.
Additional services for Cyprus
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At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.
Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email: [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague
Registration number: 304377400
Anno: 30.08.2016
Phone: +370 6949 5456
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania
Sp. z o.o
Registration number: 38421992700000
Anno: 28.08.2019
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland
Europe OÜ
Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email: [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia