Cypriot parliament to vote on egaming ban
Controversial bill allowing sports betting but banning exchange, online casino and poker to be discussed and voted on later today.
The government of Cyprus will vote later today on controversial egaming legislation which could see sports betting regulation allowed but a ban imposed on all forms of online casino and exchange betting.
Under the terms of the proposals operators would be charged tax on 10% of sportsbook gross profits, with licensees required to pay an additional contribution “ amounting to 3% of gross profit “ to a gambling regulatory body which is yet to be formed.
This gambling authority will then pass the money to the Cyprus Sports Federation, which will distribute 1.5% of the money to the Cyprus Football Association, 1% to gambling addiction charities, and 0.5% to other sporting associations.
Legislation would also see online casino games and exchange betting banned in a move which has prompted debate, with two political parties in the government, the Democratic Rally Party of Cyprus (DISY) and Democratic Party of Cyprus (DIKO) proposing a system which would allow punters to bet on an exchange solely for foreign sporting events.
This, however, has been attacked by the Progressive Party of Working People (AKEL), which has described exchange betting as a way of facilitating money laundering, local newspaper the Cyprus Mail reports.
While egaming legislation has been criticised by the likes of Betfair, which is thought to generate around 2% of group revenues from the island, a source close to the matter told eGaming Review the bill is “almost certain” to be passed.
Greek monopoly OPAP will be allowed to operate free from the constraints of regulation if it is passed due to a bilateral agreement between Cyprus and Greece, though the deal has been hugely unpopular among sections of the Cypriot population with 12 OPAP betting shops burned in protest.
The situation could be further exacerbated by comments made today by Cypriot finance minister Vassos Shiarly, who the New York Times reports as suggesting that the EU bailout of Greece caused the island’s gross domestic product to decline by 24% ahead of talks over a bailout for Cyprus itself.
Police have reportedly been stationed outside all of OPAP’s 168 remaining betting shops on the island in a bid to prevent further attacks ahead of today’s vote.
The egaming bill was originally introduced in September 2010 in order to close a loophole in the law which allowed any operator licensed in an EU member state to offer egaming services in Cyprus, described by many as a move to ensure the success of the OPAP agreement. All forms of land-based gambling, aside from sports betting, remains banned on the island.