Cyprus Witnesses Growth in Gambling Income, Fresh Regulations on the Horizon
Betting authority in Cyprus (NBA) shared new figures for the gambling sector last Friday, revealing a substantial jump in revenue for 2022. By Monday, they had called for stricter regulations to tackle the issue.
The overall Gross Gaming Revenue (GGR) for 2022 stood at €959.55 million (approximately $1.02 billion USD), representing a 22% rise from 2021. This amounted to 3.55% of Cyprus' GDP, almost quadruple what it was six years ago. The surge provided the government with around €11.75 million ($12.56 million USD) in taxes alone.
But changes are afoot in the industry, as responsible gambling is the focus in many countries, including Cyprus. The NBA is planning several new initiatives, such as identifying and combating gambling addiction, as well as implementing self-exclusion programs.
One such program will target those receiving government financial assistance, automatically excluding them from gambling activities, according to the NBA. It's unclear if this ban extends to lottery ticket purchases.
In the fourth quarter of 2022, the GGR from Class A (land-based betting) and Class B (online betting) licensees amounted to €296.6 million ($317.24 million USD). This represented a 31% increase compared to the same period in 2021.
Of this total revenue for Q4, €84.09 million ($89.94 million USD) was distributed to Class A recipients, while Class B segment received €212.51 million ($227.3 million USD), marking a 36% year-on-year increase for Class B. The income for Class A beneficiaries increased by 20%, while the overall for 2022 saw a 34% growth.
The gross receipts for the Class B segment showed a 36% year-on-year increase, with a 10% overall increase for the full-year 2022 when compared to 2021 results. Winnings for Class A and B bettors also rose by 22% compared to 2021, amounting to €265.67 million ($284.16 million USD) in Q4, a 34% increase compared to Q4 2021.
However, the number of physical betting properties saw a 2% drop compared to Q4 2021, with a total of 479 licensed properties across Cyprus, led by Nicosia with 166 properties and Limassol following closely with 142. Larnaca ranked third with 86 properties, while Paphos and Famagusta trailed behind with 52 and 33 properties, respectively.
