Cyprus to Introduce Dedicated Licensing for Gambling Technology Suppliers
Jacob Mitchell 
Key Takeaways:
- Cyprus plans to implement a dedicated licensing regime for B2B gambling technology suppliers.
- The new framework aims to enhance regulatory oversight and strengthen confidence in Cyprus-based firms.
- The Cypriot National Betting Authority expressed reservations about a proposed EU-wide gambling tax.
- Cyprus advocates a public health approach to mitigate gambling-related harm.
- Increased cross-sector regulatory collaboration is deemed essential for addressing transnational challenges.
The Republic of Cyprus is set to introduce a dedicated licensing regime for B2B gambling technology suppliers, a reform described as "long overdue." This legislative development aims to enhance regulatory oversight of the country's expanding gambling technology sector. The move is intended to provide meaningful regulatory assurance for businesses established in the jurisdiction, particularly those supplying products and services across multiple markets.
Enhancing Regulatory Framework
The expansion of Cyprus’s gambling technology sector necessitates a higher level of regulatory responsibility. The proposed legislation seeks to ensure that the regime is proportionate, efficient, and largely frictionless for legitimate businesses. This initiative is expected to strengthen confidence in Cyprus-based suppliers and elevate the Republic’s credibility as a trusted European jurisdiction for gambling and technology. Panagiotis Trisokkas, President of the Cypriot National Betting Authority, highlighted the need for regulators to deepen their technical expertise and maintain sufficient visibility over the ownership, governance, and activities of these businesses. The existing regulated betting sector in Cyprus saw turnover exceed €1.3bn in 2025, representing an 8% growth compared to 2024, operating under the Betting Law of 2019. Online betting accounts for the largest share of this activity.
EU Tax and Industry Implications
Beyond domestic regulation, Cyprus has voiced reservations regarding a proposal by Victor Negrescu, VP of the EU Parliament, to introduce a collective EU-wide tax on gambling. This proposal suggests gambling firms pay 1% of their Gross Gaming Revenue (GGR) at an EU level. The Cypriot National Betting Authority views gambling taxation as a Member State competence, requiring unanimity in the Council, which makes agreement politically challenging. From a regulatory perspective, the key concern is whether such taxation supports a safe, sustainable, and competitive regulated market, or if it risks unintentionally pushing consumers towards illegal operators. Cyprus emphasizes that any contribution from the gambling sector should be transparently reinvested in initiatives directly benefiting society, such as prevention, education, research, treatment, and support for those affected by gambling-related harm. Licensed operators in Cyprus already contribute a 10% betting tax on net betting revenue and a 5% statutory contribution, with 1% allocated to harm prevention programmes.
Safer Gambling and Cross-Border Cooperation
The National Betting Authority has adopted a public health approach through its Safer Gambling Strategy to address gambling-related harm. While around 70% of adults in Cyprus participated in some form of gambling in the previous year, approximately 3% were identified as experiencing moderate-risk or problem gambling. This strategy views gambling-related harm as a public health issue requiring prevention, education, early intervention, and access to support services, alongside effective regulation. Furthermore, the Authority stresses the importance of cross-sector regulatory collaboration and information sharing. Challenges such as illegal gambling, financial crime, cybersecurity, artificial intelligence, and sports integrity operate across borders and sectors. Stronger partnerships with law enforcement, AML authorities, payment providers, technology companies, sports organisations, and digital platforms are deemed essential for more coordinated, intelligence-led cooperation, ultimately benefiting consumers, licensed operators, and market integrity.
