Cyprus Overhauls Gambling Laws as Market Hits €1.3 Billion Milestone

Cyprus has quietly emerged as a central pillar of the European iGaming ecosystem. Recent data from the National Betting Authority (NBA) reveals the sheer scale of this development. In 2025, the regulated betting market surpassed €1.3 billion in turnover, marking an 8 percent increase compared to the previous year. However, beyond these impressive growth figures, the regulator is signaling a shift toward much stricter oversight. Instead of merely managing growth, the government is preparing legislative reforms aimed specifically at the technology providers that power the industry.

Panagiotis Trisokkas, President of the National Betting Authority, has made it clear that while the current framework has provided stability, it is no longer sufficient for future challenges. The rise of Artificial Intelligence and cross-border risks necessitates more sophisticated regulatory tools. A key focus is the B2B sector platform providers and software developers who have previously operated without direct supervision. The new rules intend to bring these companies under a licensing regime to ensure transparency across the entire gambling value chain.

Numbers and facts

The economic impact of gambling on the island is significant. Out of the €1.3 billion turnover in 2025, approximately €1.17 billion was paid out to players as winnings. State revenue from betting taxes reached €6 million, nearly doubling the €3.2 million collected the year before. Currently, licensed operators pay a 10 percent tax on net betting revenue (GGR) plus a 5 percent statutory contribution. This contribution serves social causes: 4 percent supports sports development, while 1 percent is dedicated to youth protection and addressing gambling-related harm.

The regulator has also ramped up its enforcement personnel. To monitor physical betting shops, 150 undercover inspectors were deployed. These agents pose as regular customers to detect violations such as underage gambling or unlicensed activities. Last year, these inspections led to fines totaling €46,000, with €26,000 resulting from operators lacking valid licenses. The NBA utilizes a combination of private inspection services and official regulatory oversight to maintain market integrity.

Background

The planned reform of the 2019 Betting Law aims to establish a dedicated licensing system for B2B suppliers. Cyprus is home to a growing number of tech firms that provide software for global markets. By implementing direct supervision, the NBA wants to verify ownership structures and ensure business activities remain legitimate. Trisokkas emphasizes that regulation must stay aligned with the reality of a complex digital ecosystem, focusing not just on revenue but on the integrity of the market.

"The current framework has created a stable market, but further reforms are needed to match the industry’s development." - Panagiotis Trisokkas, President of the National Betting Authority

Simultaneously, Cyprus is pushing back against efforts to introduce a European-wide gambling tax. A proposal by European Parliament Vice President Victor Negrescu has met with skepticism in Nicosia. Regulators fear that additional financial burdens on legal operators would drive players toward the illegal market, where no taxes are paid and no consumer protections exist. Instead of new taxes, Cyprus advocates for closer cooperation between national authorities to combat financial crime and cybersecurity threats.

Why it matters for German players

For players in Germany, the situation remains unchanged: even though Cyprus is a major tech hub, a Cypriot license (Class A or Class B) does not grant legal access to the German market. Germany operates under the State Treaty on Gambling 2021 (GlüStV 2021). To play legally and safely, German residents must use operators listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). This whitelist is the only reliable source for identifying legal online casinos and betting sites in Germany.

German licenses come with strict consumer protection rules that are not present in the Cypriot framework. These include a cross-operator monthly deposit limit of €1,000 and a maximum stake of €1 per spin on virtual slots. Furthermore, German players are registered in the LUGAS system to monitor these limits and enforce self-exclusion lists. Any operator based in Cyprus without a GGL license is considered illegal in Germany. Players should always check for the GGL seal in the website footer to ensure they are protected by German law.

What it means for GGL-licensed casinos

The regulatory shift in Cyprus is still relevant for German GGL-licensed casinos. Many of the B2B service providers located there supply software and platform solutions to German licensees. As Cyprus tightens oversight over these tech firms, it indirectly improves the security and transparency of the software used in Germany. Stronger vetting of ownership structures in Cyprus helps remove untrustworthy actors from the supply chain of legal German operators. It signals that the era of unregulated tech providers in Europe is coming to an end.