The Cyprus Online Gaming Association has called on the government to legalise online casinos, arguing that comprehensive regulation is urgently needed to combat illegal platforms and online fraud threatening citizens.
The association, which was established in May 2025 with members including betting firms Stoiximan, Bet365 and Bet on Alfa, used Safe Gaming Week as an occasion to revive debate on the issue, which has previously occupied authorities and industry professionals.
The association argues that legislative regulation and legalisation of online casinos have become an urgent necessity to address various challenges and risks posed to citizens by numerous illegal platforms and online scams.
The industry body said Cyprus needs a modern and effective regulatory framework that would permit online casinos whilst ensuring they operate within a properly structured supervisory system.
The association said establishing a clear and unified legal framework for online gaming, as exists in other EU member states, could generate significant tax revenue, strengthen consumer protection and create a level playing field. It would also open the door for new investments and jobs if companies in the sector chose to operate legally in Cyprus.
Industry demands action
Association president Angelos Chontoulidis said the country has reached a phase where new legislation is expected to regulate markets that have remained unregulated until now, such as online casinos.
“Through a clear licensing framework, the market will gain credibility and growth prospects, to the benefit of all,” Chontoulidis said.
Panos Yiannis, head of legal and compliance at Stoiximan, and a Bet365 representative echoed these views, stressing the need to create a new regulatory framework that would regulate markets such as online casinos whilst ensuring transparency and responsible market operation for the benefit of players.
Currently, Cyprus permits only online betting activity on sporting events with a special licence from the National Betting Authority. However, under existing legislation, no online gaming operations such as casinos, poker or slot machines are permitted.
€1 million monthly loss
The absence of regulation in the online casino sector has opened multiple fronts affecting public revenue, fair competition and the security of the financial system, according to market players.
Although online betting activity is legally permitted, illegal online gaming platforms continue to operate unchecked, creating serious economic and institutional distortions.
The state is estimated to lose up to €1 million per month in taxes and licensing fees that could be collected if the sector were regulated, depriving resources that could strengthen public coffers.
Unfair competition
Another factor highlighted by those involved is unfair competition between supervised companies that pay taxation to the state compared with those operating illegally.
Legal betting companies operate under strict supervision from the National Betting Authority, complying with controls and tax obligations. By contrast, illegal platforms operate unchecked, absorbing market share without contributing to public revenues.
In other EU countries such as Malta and Estonia, the regulated online gaming sector contributes more than 10 per cent to GDP, whilst in Cyprus the percentage does not exceed 3.6 per cent in 2024, due to the absence of a comprehensive legal framework.
Fraud and money laundering risks
Companies in the sector also highlight increased risk of money laundering from illegal activities, as platforms use local payment providers and European bank accounts.
Reports from the Central Bank and MONEYVAL have emphasised the problem, highlighting the need for stricter controls on payment providers, as suspicious transaction flows from unlicensed platforms have been recorded.
Another issue that has become a scourge in Cyprus is the defrauding of citizens by purported online platforms offering games of chance. The lack of regulation has allowed the spread of these scams, as fraudsters create fake websites that visually reproduce well-known companies or casinos, misleading unsuspecting users.
These cases have increased recently and have already caused concern amongst authorities, who are urging citizens to be vigilant.
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