The National Betting Authority of Cyprus is preparing a new regulatory approach that would bring gambling technology suppliers under direct supervision for the first time. The move comes as the island strengthens its position as a European hub for gaming businesses while facing growing pressure to improve transparency and consumer protection.
Panagiotis Trisokkas, President of the National Betting Authority, said the current framework has created a stable market, but further reforms are needed to match the industry’s development.
Cyprus Targets B2B Gambling Sector With New Licensing Rules
Under Cyprus’ Betting Law of 2019, the country currently licenses retail and online sports betting operators. The system covers Class A land-based operators and Class B online betting businesses, with licensed companies paying a 10% tax on net betting revenue and an additional 5% statutory contribution.
That contribution is split between social priorities. Four percent supports sports development, while one percent goes towards protecting young people and addressing gambling-related harm.
The market has continued to expand, with betting turnover increasing by around 8% compared with 2024. Online betting remains the dominant segment, although physical betting shops continue to play an economic role.
The next regulatory step focuses on the growing number of B2B gambling technology companies operating from Cyprus. These businesses supply platforms, software and services to operators across multiple jurisdictions, creating new challenges for national regulators.
A planned legislative reform would introduce a dedicated licensing system for B2B suppliers. The goal is to improve oversight of ownership structures, governance and business activities without creating unnecessary barriers for legitimate companies.
For Cyprus, the change represents an attempt to keep regulation aligned with the reality of a more complex gambling ecosystem.
Regulators Shift Focus Towards Safer Gambling
Despite market growth, Cyprus is also focusing heavily on gambling-related harm.
A national prevalence study found that around 70% of adults had gambled during the previous year. Around 3% were classified as experiencing moderate-risk or problem gambling.
The National Betting Authority has moved towards a public health model, treating gambling harm as an issue that requires more than enforcement. The strategy combines prevention, education, early intervention and access to support services.
The regulator’s position is that responsibility must be shared between government institutions, operators, healthcare professionals, researchers and wider society.
The challenge is maintaining a growing legal market while limiting risks for vulnerable groups.
Cyprus Pushes Back on Additional EU Gambling Tax
The debate over gambling taxation at European level is another issue facing regulators.
A proposal from European Parliament Vice President Victor Negrescu to introduce an EU-wide gambling tax has raised questions about how additional costs could affect licensed operators.
Cyprus’ regulator expressed caution over the idea, arguing that any new financial burden must be examined carefully. Higher costs for regulated companies could potentially create advantages for illegal operators that avoid taxation and compliance obligations.
The authority’s position is that gambling revenues should continue to support public benefits, particularly prevention programmes, research and treatment services.
Rather than introducing additional taxes, Cyprus believes stronger cooperation between regulators could provide better results.
Cross-Border Cooperation Becomes Key Regulatory Challenge
Illegal gambling, financial crime, cybersecurity threats, artificial intelligence and sports integrity issues are no longer limited to individual markets.
Cyprus sees closer cooperation between gambling regulators, law enforcement agencies, payment companies, technology providers and sports organisations as increasingly important.
Regulatory meetings at leading industry events are expected to focus on how authorities can improve information sharing and use technology more effectively.
Illegal gambling remains a major concern, but discussions are shifting toward practical solutions. Regulators are increasingly looking at digital identity systems, AI tools, financial crime prevention and faster international cooperation.
For Cyprus, the next phase of gambling regulation is less about controlling a growing market and more about ensuring that growth does not outpace oversight. The country’s planned reforms will test whether it can remain attractive to gaming businesses while building a stronger regulatory foundation.
The post Cyprus Builds New Regulatory Framework for the Gambling Sector appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
