Cyprus Considers Regulation of Online Casinos as CGCS Prepares for Supervision

The Cyprus Gaming and Casino Supervisory Authority (CGCS) has confirmed that it is actively examining the possibility of regulating and licensing online casinos in the country, a topic that has been under consideration for some time. In a statement issued today, the CGCS highlighted that it is reviewing international regulatory practices as well as assessing whether the exclusivity granted by existing legislation and the agreement for the operation of the Integrated Casino Resort in Limassol would permit the introduction of online casino regulation.

The announcement follows publications prompted by the newly established Cyprus Online Gaming Association (COGA) during Safe Gaming Week. On Monday, COGA called for renewed discussion on the institutional framework needed to protect the market and players, with Association president Angelos Chontoulides stating: “The online casino market exists today, it simply operates without rules. This means a lack of protection for players, loss of tax revenue for the state and a field without control. It is time for a clear and modern institutional framework.”

Currently, according to a recent statement by the National Betting Authority (NBA), the absence of relevant regulation renders the operation of online casino services illegal, as does participation in such games.

Despite the current illegality, the CGCS has declared its readiness to supervise online casinos should regulation be introduced. The Authority explained that under the current legal framework, defined by Law 124(I)/2015 and the 2017 Concession Agreement, exclusivity is granted for the operation of the Integrated Casino Resort and its satellite branches. Whether this exclusivity extends to the online sector is a legal and contractual matter under assessment by the competent State bodies as part of a broader examination of the issue.

In its statement, the CGCS emphasized that it systematically monitors international developments and is preparing at an institutional, technical, and operational level to provide documented recommendations and support the State in any future decisions regarding online gambling regulation. Different international regulatory models are being studied, including frameworks where online casinos with exclusively foreign-oriented activity are licensed, as applied in jurisdictions such as Malta and Gibraltar. These examples are being considered for comparative analysis and potential adaptation to the Cypriot market.

The CGCS stated that it possesses the institutional framework, expertise, and experience to supervise any type of casino, whether physical or online. With certified information systems, specialized personnel, and established international cooperation, the Authority has developed the necessary infrastructure and procedures to meet the requirements of a modern regulatory body. It further noted that any future regulation of the online sector should be guided by principles of transparency, accountability, and social protection, ensuring a balance between sector development and player protection. “CGCS will continue to provide documented, calm and objective information on all issues concerning the supervision of games, with the sole aim of public interest and maintaining the credibility of the regulatory framework of the Republic of Cyprus,” the announcement concluded.

Meanwhile, the National Betting Authority (NBA) has reiterated the current illegality of online casino operations. In August, the NBA addressed the surge of advertisements for online casinos in NDAs, stating: “In accordance with the legislation governing betting and gambling in Cyprus, the operation of online casinos is expressly prohibited.” The authority warned that “participation in such illegal activities poses serious risks, both for the security of players’ personal and banking data, and for their financial and psychological well-being.” The NBA also highlighted that, under Article 79 of Betting Law 37(I)/2019, participation in illegal online gambling can result in imprisonment of up to 1 year and/or a fine not exceeding €50,000, while providers of such illegal services face penalties of up to 5 years in prison and/or fines of up to €300,000.

By fLEXI tEAM