The review places the Cyrpus LGA remote casino licence under the Gambling Regulation Act 75 (I) of 1997, which it describes as governing gambling operations in Cyprus. It characterizes the framework as official in form but comparatively lenient in practice.
This licence is not widely recognized and has a weak reputation. Some online casinos reportedly choose it because it is relatively straightforward and inexpensive to obtain compared with licences from bodies such as the Malta Gambling Authority (MGA) or the United Kingdom Gambling Commission (UKGC).
Online casinos licensed only by the LGA have faced criticism over alleged gaps in oversight, including reports of players being disadvantaged in disputes with casinos. The review also says operators can generally communicate with the LGA, leaving players without the licensing body as an intermediary.
- Application Process
The review describes the application route as largely consisting of paying annual registration charges and agreeing to pay yearly taxes.
- Favourable Taxes
Establishing an online casino business in Cyprus may offer tax advantages, including limits on the amount of tax charged to a casino company.
Types of Licences
Gambling oversight in Cyprus can be difficult to follow because separate regulatory bodies cover different activities. The review lists online and land-based casino gaming, lotteries, poker, sports betting, and bingo among the relevant areas.
Licensing rules and oversight fall under the Cyprus Casino Control Law, with responsibilities divided among departments and licence classes.
Online poker and casino games cannot be offered within Cyrpus, while offshore operators may obtain a Cyprus licence if they do not target customers in the Republic of Cyprus. Online sports betting is described as permitted both in Cyprus and abroad. The review assigns remote gambling licences to the LGA.
Land-based casinos and games of chance are described as legal in Cyrpus and regulated by a separate body, the 2015 ‘Cyprus Gaming and Supervision Commission’. It seldom works with the LGA, though both operate under the Cyprus Casino Control Law.
The review lists 4 licence types for online casinos:
- Class 1: Remote gaming licence
- Class 2: Online betting office licence
- Class 3: Promote gaming from Cyprus
- Class 4: Host and manage online gaming operators
Software Testing and Licensing
Suspension or revocation of a Cyprus LGA licence is described as very uncommon. The review says that in practice an online casino risks losing its licence if it fails to pay its annual fees and/or taxes.
The licence requires games to be tested 6 months before an application. The review also reports that the LGA is not known for routinely checking casino software for fairness and integrity.
If you’re considering a casino that claims to be licensed in Cyprus, check whether it also holds a license from another regulator that conducts regular reviews.
Areas of Focus
Despite the LGA’s reported reputation for limited oversight, the review identifies several areas the authority says it addresses. These include integrity screening of people associated with a company, responsible gambling measures, account monitoring intended to prevent underage play, and proper customer service from licensed online casinos.
Player balances must be kept separate from a casino’s operating funds. The review presents this separation as a way to support reimbursement of account balances if a casino becomes insolvent or enters liquidation.
How to Obtain a Licence
Applicants submit their paperwork and an application fee directly to the LGA. Although the review describes several prerequisites, it says most companies should be able to meet them.
According to the application requirements summarized, an applicant needs an LLC registered in Cyrpus, must pay a non-refundable application fee, and must name a key individual as director who reports to the LGA when requested. Applicants must also meet financial requirements and provide a full account of the business structure and the criminal history of everyone involved.
After approval, a 5-year licence is issued for an annual fee of €7,000, in addition to taxes incurred during the year.
Conclusion
The review identifies the Cyprus Lotteries & Gaming Authority(LGA) as the body that issues online casino licences to companies serving markets outside Cyrpus; online sports betting is described as an exception that may also be offered within Cyrpus.
This licence is described as easier to obtain than alternatives because its requirements are less demanding, while the review links that perceived leniency to its weaker reputation. It also cites limited player access to an intermediary and a lack of regular software reviews as shortcomings.
