Cyprus Online Casino Ban
March 22nd, 2011 | Published in Casino Tips
Located in the Mediterranean, this beautiful island nation is home to many online gambling operators. Since there is a shortage of land-based casinos and internet connectivity is widely available, Cyprus is the ideal location to host and engage in online gaming. Cypriots on the island gamble at local internet casinos as well as offshore. It is estimated that in 2008, online gambling drew 2.5 billion Euros, proving the prosperity of the industry.
Online Gambling is a Social Wound
Despite this massive success for such a small country, Deputy government spokesperson Christos Christosfides revealed to the media that under the current gambling laws online gambling has developed into a “social wound.” Online gambling is currently a legal activity and must be regarded as such.
Therefore, the Chairman of the Legal Affairs Committee, Lonas Nicolaou, discussed the situation in 2010 by releasing the statement, 5% of electronic gambling services in our country operates legally because they are provided over the Internet and there is no authority on the island where one can apply for a permit.”
The Government is in Agreement
This has been the consensus within the government for quite some time. The next step in this lengthy process is the requirement made by the European Union to deliver a free movement of commercial services without boundaries. It is now approximately four years since the gambling laws in Cyprus were updated. Portugal has been granted exception due to preventing crime to protect citizens. Cyprus is taking the same stance.
Banning Online Poker and Casino Games
Simultaneously, the government of Cyprus is taking steps to ban specific forms of online gambling. The bill has slowly made its way through the government and now only needs legislative approval. If enacted, this law will ban online poker and casino games while continuing to allow online sports betting and lotteries for those over the age of 18. For the two legal types of gambling the tax on profits will drop from 10 percent to 3 percent.
Europe seems quite torn with the legalization of gambling. Many countries are fully in favor of enacting the activity while others do not see the benefits and therefore are rejecting the European Union. In Cyprus, although online gambling looks like it is going to be outlawed, online sports books and lotteries will catch a break with regards to taxation. Therefore, for some organizations, this could become a positive result.