Cyprus Molds Regulation, Just Ahead of Full Scale Development

The island nation of Cyprus has submitted an adapted regulation model to the EC, as plans for the first Cyprus IR take shape.

Barriers in Last Draft

The first version of the proposal, Betting Law 2017, was submitted to the Commission last June. Out of concern that the policy at the time favoured Greek operator OPAP, the EU suggested that the Cypriot government adapt its gambling policy to a more equitable model.  

New Guidelines

According to the Cyprus National Betting Authority NBA, the new framework requires licensed bookmakers to pay a 10% tax on net revenue generated from services. A further 1% levy on net revenue will be contributed to responsible gambling initiatives, with an additional 2% levy to support sporting organisations within Cypress under review.

Local IR Development

Meanwhile, on the private front, operators of Cyprus’ very first casino resort presented their final plans to the Cyprus President Nicos Anastasiades, targeting 2021 for the opening.   

Location Location

Construction of the largest integrated casino resort in Europe will take place amongst the citrus orchards in the Zakaki flatland west of Limassol overlooking the Mediterranean.

Patronage

Integrated Resorts Cyprus is expected to attract 300,000 tourists per year, according to Melco International Development LTD. Chairman Lawrence Ho, who is also the driving force behind the project.

Shares

As far as project stake, Melco holds a 70.74 share, with local Group GNS Group holding 29.26 percent of the consortium shares.

Economic Benefits

Economic impact studies estimate the impact to Cyprus' economy after the second year of the casino's operation at 700 million euros per year, or approximately four percent of the country's annual GDP.

An additional 2,100 jobs will be created in Cyprus, with peripheral operations pushing that total to 11,000.

Grounds and Amenities

The casino resort will be equipped with a 500-room luxury hotel, 11 restaurants and cafeterias, a retail area, wellness and sports centres, and exhibition facilities across an area of 9,600 square meters.

Satellite Clause

The deal also calls for four satellite casinos, one for each of the four cities of Cyprus.

Prominent License Holder

Bet365 is among the eight companies currently holding full class B licenses in Cyprus.

Outlook

As the rate of development accelerates in Cyprus, effective regulation cannot come any sooner.