Cyprus: End near for online gambling

If the Commission’s answer is positive, parliament would pass the law without further delay, he said. “I think we can expect the Commission to get back to us in December,” Clerides told newsmen.

The bill outlaws online games like roulette, poker, and slot machines, but allows for licenses for sports betting outlets. It further provides for the creation of a gaming board that will regulate betting in Cyprus itself. Licensed shops will pay a tax on turnover, not profit.

To better control the online sports betting business, it will be prohibited to use cash for bets, which can only be placed via credit card or an e-account (electronic account), thus making transactions easier to monitor.

Establishments failing to pay their tax dues on time will be shut down for as long as the case is in court. In addition, lawmakers want outlets to submit a bank guarantee as a security to ensure that players receive their winnings.

Clerides explained that because EU laws expressly prohibit restrictions on the provision of services, the government was obliged to ask the European Commission for an exemption in enforcing a total ban on electronic gambling.

“We need to convince the European Commission that the ban is in the public interest and that it adheres to the principle of proportionality, as under the EU acquis you cannot, except under certain circumstances, prohibit the provision of services from one EU member state to another.

“We also argue that the ban is intended to combat criminality and to protect the consumer. I think we will be persuasive,” Clerides said.

The AG said he was confident the Commission would Cyprus give its approval for the bill, paving the way for parliament to pass it into law as soon as possible. Moreover, Clerides said, European case law provides added ammunition, since some EU countries have already been allowed to ban online gambling.

Portugal has defined online gambling as “Placing a bet from Portugal territory over the web with a company based outside of Portugal.” The wording makes it clear that a person cannot, at any time, gamble online when they are on Portuguese soil.

DISY deputy Ionas Nicolaou yesterday cited police statistics according to which there are currently over 600 online ‘casinos’ on the island, which for all intents and purposes are operating legally because of a lack of specific legislation. And a recent police study found a sharp rise in violent crime with links to online gambling. But critics of a ban say it will drive the business even further underground, putting punters at risk.

Although precise figures are hard to come by, it is estimated that Cypriots wager hundreds of millions of euros online every year.