Cyprus Gaming Services

01

Cyprus stands as a leader in mobile gaming user acquisition (UA)and monetisation, both in downloads and revenue. Of the top 100 mobile games publishers by download in 2024, seven were headquartered in Cyprus. Only the US with 13 and China with nine had a larger presence in global mobile game publishing downloads.

02

Key industry players have established significant operations in Cyprus, bringing with them an influx of talent and developers. Cyprus game developers are increasingly exploring cross-platform strategies to maximise reach and revenue. The island is also seeing increased investment in esports, blockchain gaming and AI-driven development tools.

03

In addition to one of the lowest corporate tax rates in the EU, the Cyprus IP Box Regime provides an 80% exemption on qualifying profits derived from eligible IP assets. This tax incentive, which offers an effective corporate tax rate of just 3% on qualifying IP income, applies to a range of innovations, including patented inventions, copyrighted software, and utility models – making it especially relevant for the tech and gaming sectors.

04

Cyprus has also emerged as a top-tier hub for sports-betting companies

Gambling Regulation

The gambling sector in Cyprus features a robust regulatory framework that upholds transparency, player protection and integrity in the marketplace. The current primary legislation is the Betting Law of 2012, as amended in 2019, which established the Cyprus National Betting Authority (NBA) to be the independent regulator for both land-based and online betting.

The NBA is responsible for licensing, supervision and enforcement of law and regulation related to gambling, including safer gambling and the protection of vulnerable groups. There are two types of gambling licence in Cyprus:

The Authority issues the following licences to businesses offering gambling services:

Class A Licence (land-based betting) – covering the provision of carrying out betting services within licensed premises, excluding online betting services and horse racing betting.
Class B Licence (online sports betting) – covering the provision of electronic betting services excluding slot machines, on-line casino games of chance provided with a direct link, and electronic horse racing.

All licences are issued for one or two years and may be renewed on application. Licensees are required to pay a fee of €30,000 For one year and €45,000 for two years. The NBA can revoke or suspend a licence for a failure in compliance with the regulations.

Licensing Process

A company seeking a licence in Cyprus under the Law must have its corporate seat in Cyprus or have a branch office of an overseas company in Cyprus with its main activity being the conducting of betting activities. In both cases, the issued and paid up minimum share capital is €500,000.

The licensing fees paid to the NBA are currently €30,000 for Class A or B bookmaker’s licence valid for one year, or €45,000 valid for two years.

An application must be accompanied by a bank guarantee from a bank in Cyprus or other EU member state of the amount of €550,000 that is valid for six months after receipt of the licence. The applicant must also demonstrate that it has sufficient resources to pay the players’ winnings, adequate accounting and control systems, and that it can comply with NBA regulations for the protection of the players.

There are also various technical requirements that must be met, including:

A backup server in Cyprus that is connected to the NBA system to allow it to process transactions in real time and monitor betting activity.
The official website of the gambling operation must use a .com.cy domain to indicate that a gambling operation is registered and operates in Cyprus.
Compliance with all the requirements of the Betting Law in respect of the user interface, security, data protection and user accessibility.

The NBA will undertake an initial evaluation of the application, supporting documents and necessary certifications to check for any any missing documents or further clarifications. When satisfied, it will then proceed to a final evaluation of the application and the necessary background checks before bringing the application to the Authority’s board for a final decision. The licence is then delivered to the successful applicant.

Gaming Tax in Cyprus

Cyprus offers a highly favourable tax regime to gaming companies in Cyprus. The combined betting tax and contribution tax leads to a flat rate of 13% on the net gaming revenue, which includes:

10% to the Cyprus Tax Department.
3% to the National Betting Authority (2% to fund sports federations in Cyprus and 1% to fund gambling addiction programmes in Cyprus).

Sovereign Services

To drive the rapid growth required to succeed in such a competitive global sector, online gaming and online sports betting start-up companies need to choose the right corporate structure that will allow them to secure financing, gain regulatory approvals, protect and exploit their IP and safeguard user privacy.

Sovereign can help gaming start-ups to make the right choices, including:

01

Setting up and structuring your business to optimise commercial and tax efficiencies.

02

Providing corporate governance and administration to ensure compliance.

03

Assisting with licensing and regulatory approvals.

04

Assistance with opening a bank account in Cyprus.

05

Assisting with IP protection and licensing agreements.

06