Cyprus’s betting regulator has deployed 150 undercover auditors posing as customers to conduct surprise inspections of betting shops across the island, checking for illegal activity and the presence of minors.
The National Betting Authority has purchased services from the private sector to send the “secret” auditors into betting shops, where they closely monitor employee actions and check whether illegal bets are being placed, the parliamentary Finance Committee heard on Monday.
Beyond the surprise undercover checks, authority officials also conduct on-site inspections at betting shops and monitor websites through which hundreds of players gamble. Officials also check betting companies for possible money laundering.
The authority imposed fines totalling €46,000 on betting shops last year, with €26,000 for non-compliance with licensing provisions and the remainder for the presence of minors and other violations, according to evidence submitted to the committee examining the authority’s 2026 budget.
Cypriots wagered €1.3 billion in bets last year, with players winning €1.17 billion from their betting activity. The state collected €6 million in betting tax, up from €3.2 million the previous year due to a tax increase.
A draft bill containing new products and services, as well as provisions for safe gambling and protection of minors, has been before the Finance Ministry for one year. A ministry representative told the committee there are no plans to offer online casino games.
The authority expects revenue of €71.85 million this year, an increase of 28.03% or €15.73 million compared to 2025. Revenues are forecast to rise further in 2027-2028 to €75.27 million and €78.59 million respectively.
Revenue breakdown for this year includes €53 million from betting activity tax, €8.2 million from licence fees, and €10 million from betting activity contributions. The tax paid by Class A (land-based betting) and Class B (online betting) licensees is 10% on net betting receipts.
A €32 million provision covers betting tax on OPAP Cyprus’s gross profits under a new contract.
The state will collect €2.8 million from granting licences to Class A and B recipients, authorised representatives and branches, plus €5 million in licence fees and €0.4 million from OPAP Cyprus’s supervision contribution under the new contract.
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