BOOKMAKERS yesterday expressed their concern over reports that Greek and Turkish Cypriots were working together to operate illegal betting shops in the north.
Speaking to the Cyprus Mail, the manager of an established bookmakers, who did not want to be named, said the operation of betting shops in the north would be detrimental to bookmakers in the free areas, but also to the government who would lose out on the taxes from illegal bets.
“People don’t want to pay the high tax in betting – around 35 per cent – so they bet their money in illegal bets in the north where they don’t have to pay the tax,” the man said.
The man said bookmakers would not be negatively affected should the government approve a bill that would lower betting tax from 35 per cent to around four.
“In the end, it is the government that loses out by high taxation; when they reduce the tax, more people will bet legally and therefore the government will make the same amount of money,” he said.
The man conceded that the betting industry had been affected since the checkpoints had opened in April.
“There was a reduction in betting in the free areas ever since the checkpoints opened, but it hasn’t been that much,” he said. “We are not worried.”
A local horse betting agency manager said he was pleased with government plans to lower the tax, since it would not be the bookmakers who would have to pay the difference.
“With the new law, punters would not be taxed on the money they bet but on the earnings,” he said. “So, if you pay £10 and you earn £100, you will receive £96.”
DISY deputy Prodromos Prodromou said yesterday the new bill was almost ready to be approved, probably in plenum’s first meeting after the summer recess.
“The bill was not ready yesterday, so it is now expected to be passed in October unless we have another extraordinary meeting in the next few weeks to approve any pending harmonisation bills,” he said.
He said the new bill would be beneficial to everyone.
“When a person who has been betting illegally discovers that the tax has gone down to four per cent, they will prefer to bet legally instead of betting illegally and risking not getting their money,” Prodromou said.
“The only thing that could be cause for concern is whether illegal bookmakers might increase the possible winnings in an effort to pull those who changed their minds back in their clutches.”
