A company can hold more than one license. The fees for a class 4 license vary...
The Lotteries and Other Gaming Act govern the majority of online casino operations in Cyprus. Cyprus's regulations are rather strict and the Lotteries and Other Gaming Act establishes an Authority whose job it is to regulate gaming registered in Cyprus, whether online or not. Part of that authority's job is to ensure that licensees are what is called "fit and proper persons" to carry out gaming activity. Cyprus's website doesn't exactly say what that means.
Another element of regulation under the same authority is to ensure compliance with license conditions and to keep gambling operations free of criminal activity.
A portion of the Lotteries and Other Games Act, called the Remote Gaming Regulations, specifically regulates online gaming. Remote gaming requires a valid license issued to an LLC that is registered in Cyprus. The operators of these companies must undergo background checks as well as demonstrate solvency, to ensure payouts, and demonstrate a history of business ability.
The purpose of creating an LLC that is registered in Cyprus is ensure transparency and prevent tax evasion.
There are several classes of gaming licenses. Including Class 1 for operating games based on repetition, such as table games and slots. To have such a license, an operator must use an LGA approved random number generator.
A Class 2 Remote Gaming License allows operators to run single event gambling, such as sports betting. It covers some types of pool betting and all types of fixed odds betting.
A Class 3 Remote Gaming License covers player to player games in which operators do not participate in risk and operate by commission or rake.
A Class 4 License covers software vendors and the hosting of remote gaming operations that have any of the above licenses. Those holding a class 4 license cannot actually hold any part of the gaming risk and can only operate on commission.
There is a non-refundable processing fee of 2,300 Euros to get started and an annual licensing fee of 7,000 Euros per license. The same company can hold more than one license. The fees for a class 4 license vary.
The annual fee must be paid by the fifteenth day after the license is granted.
Gaming tax varies by license. A stand alone Class 1 license is 7,000 Euros a month. The tax on a class 2 online betting license is one half a percent of the gross amount of online bets accepted per month. A Class 3 license is taxed at five percent of net revenue per month. There is no direct gaming tax for a class 4 license, but the licensee does pay proportionally, depending on the number of gaming platforms supported. At no time shall the total amount of tax paid by any licensee exceed 466,000 Euros.
