Cyprus MPs have adopted a new bill to raise the tax on sportsbook winnings. This new legislation will increase the betting tax on licensed betting companies from 3% to 4.5% of their net earnings.
The additional monies are intended to support football clubs and youth academies, which are controlled by the Cyprus Sports Organisation (CSO) and distributed to the Cyprus Football Association (CFA).
The country’s finance minister presented the new regulation, which passed with 27 votes from the Ethnikó Laikó Métopo (ELAM), Dimokratikós Sinagermós (DISY), and Dimokratikó Kómma (DIKO) parties, while 25 parliamentarians voted against it.
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The additional monies generated by the increased levy will be distributed to the Cyprus Sports Organisation, which will channel them into the Cyprus Football Association, allowing for support for professional soccer clubs and their academies.
According to policymakers, the changes to Cyprus’s betting laws for 2019 and 2020 will assist 97 local football clubs around the country. However, some have pointed out that this judgment fails to resolve football clubs’ tax debts.
Currently, football clubs owe €35.6 million ($37.3 million) in taxes, with €4.1 million ($4.3 million) added in the last year as a result of the latest debt repayment arrangement. These football clubs have until June 2037 to satisfy their debts.
Haris Georgiades, a DISY MP, pointed out that foreign football accounts for the majority of betting activity. He pointed out: “Finally, the law that applies to every citizen must be enforced for the clubs as well.”
He also emphasized the importance of clubs adhering to the state’s payback programs and chastised those who do not. Georgiades underlined that the AEK Larnaca football club exemplifies good management, noting that the team owes no taxes.
Stefanos Stefanou, AKEL General Secretary, stated that five clubs had not made a single payment under the most recent program. He also stated that this “bubble” is bound to explode. According to ELAM MP Sotiris Ioannou, betting revenue in 2024 is predicted to reach €150 million ($157.4 million), with the state receiving €15 million ($15.7 million) and sports federations receiving €2 million ($2.09 million).
Critics, including independent MP Alexandra Attalidou, say that the new law violates club competition rules and European subsidies standards. She commented: “It is inconceivable for the state to reward those who do not pay their debts.”
This new legal structure will apply to both land-based and internet betting companies, with the proceeds going towards football teams’ tax arrears.
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