Source: cyprus-mail.com
Cyprus’ National Betting Authority (NBA) expects to collect €72.92 million in 2027, helped by its agreement with OPAP Cyprus (Allwyn) and continued growth in the betting market, although the figure is €2.35m lower than it was forecasting earlier this year.
The revised figures, included in the authority’s 2027 budget, which has been submitted to parliament, show revenue rising by €1.07m, or 1.5 per cent, compared with the €71.85m expected in 2026.
The increase is being driven mainly by the agreement with OPAP Cyprus and expectations of further growth in betting activity, following the increases recorded in recent years.
The latest forecast, though, represents a downward revision from the €75.27m previously projected for 2027, according to the earlier budget figures presented to parliament in January.
The difference is worth noting, particularly as the betting industry continues to generate substantial revenue for operators and the state.
Under the proposed budget, expenditure will reach €72.71m, an increase of €1.18m, or 1.65 per cent, from 2026, leaving the authority with a relatively modest surplus of €210,000.
The outlook improves over the following two years, with revenue expected to reach €77.1m in 2028 and €81.33m in 2029, compared with projected spending of €76.66m and €80.81m respectively.
This would leave surpluses of €430,000 in 2028 and €520,000 in 2029.
A considerable share of the money, however, does not remain with the regulator.
Of its planned expenditure for 2027, €67.39m relates to taxes and fees collected on behalf of the state and subsequently transferred to government coffers.
The amount reflects both the agreement with OPAP Cyprus and the industry’s financial performance in recent years.
More specifically, the authority expects to collect €53m from betting and certain gambling taxes, unchanged from its 2026 estimate.
Of this, €32m is expected to come from tax on OPAP Cyprus’ gross gaming revenue under its agreement with the Republic.
The concession agreement, signed in June 2024, granted OPAP Cyprus exclusive rights to operate specified games of chance for 15 years, extending until June 2039.
Under its terms, the Republic receives 22.5 per cent of gross gaming revenue, while the company is required to allocate another 5 per cent to sporting, social and charitable activities in Cyprus.
The agreement also provides for annual licensing payments linked to the performance of the games, with minimum annual proceeds for the Republic set at €20m.
Meanwhile, revenue from imposed fees, OPAP licensing and supervisory contributions is expected to increase from €8.2m this year to €8.7m in 2027.
Betting-related contributions are also forecast to rise, from €10m to €10.5m, while administrative fines are expected to bring in another €150,000, unchanged from 2026.
The projections come at a time when Cyprus’ licensed betting industry is showing an interesting pattern, with operators earning more even when the amount wagered falls.
According to the latest market figures, wagers reached €329.8m in the second quarter of 2026, down €30.3m from the previous three months but still 11 per cent higher than a year earlier.
More importantly for bookmakers, gross gaming revenue rose by 24 per cent to €46.9m, compared with €37.9m in the corresponding quarter of 2025.
In other words, operators kept more money after paying out winnings, despite handling fewer bets than in the first quarter.
Across the first six months of 2026, total betting activity reached almost €690m, with bookmakers retaining approximately €92.8m after player payouts.
Online betting continues to account for the largest share of the market, reflecting the growing importance of digital platforms to the industry’s earnings.
That growth, however, also raises questions about how much betting activity is taking place beyond the reach of licensed operators.
In response, the authority is planning a €60,000 study into illegal gambling in Cyprus, seeking to establish how much business is being diverted towards unlicensed providers.
The research will examine what is known as channelisation, essentially measuring the proportion of players using legal, regulated betting services rather than illegal alternatives.
It will also look at why people turn to unlicensed operators, the factors influencing their choices and what might encourage them to use legitimate platforms instead.
For the regulator, the findings should provide a clearer basis for deciding where enforcement efforts are needed and whether existing measures are making a difference.
The scale of the challenge is already evident from the authority’s enforcement activity.
By the end of June 2026, 22,660 unauthorised betting websites were on its blocking list, with 245 added during the second quarter alone.
Alongside the proposed study, the 2027 budget includes €400,000 for strategic initiatives, covering existing commitments and new activities aimed at improving how the industry is regulated.
Among the priorities are greater use of artificial intelligence and emerging technologies, support for innovation and start-ups, and stronger supervision of licensed betting operators.
The authority also plans to tighten measures against money laundering and terrorist financing, strengthen efforts to prevent match-fixing and improve the systems used to block illegal gambling websites.
Further work will focus on due diligence checks, particularly when assessing licence applications and identifying the beneficial owners of betting companies.
Player protection is another area receiving funding, with €1.5m earmarked for safer gambling initiatives under the authority’s wider strategy.
The money will support programmes intended to protect young people and those experiencing gambling-related harm, alongside public awareness campaigns and the annual Safer Gambling Week.
Cooperation with the Cyprus national addictions authority will also continue, including treatment services in the Famagusta and Paphos districts and plans to extend support to minors.
At the same time, the regulator intends to expand the national self-exclusion platform to land-based betting, allowing people who want to restrict their gambling activity to do so beyond online services.
Educational activities in schools, preventive programmes for vulnerable groups and further public awareness initiatives are also included in the plans.
The authority’s proposed budget remains subject to parliamentary scrutiny, with the House Finance Committee expected to examine the figures and spending priorities.