TWO of the biggest betting companies in Cyprus have come out in favour of a proposal for a new law governing gambling. The law, which is currently being drafted, will see tax reduced or abolished, the opening up of the market, allowing other operators to stage races, and foreign bets allowed.
Loukis Ioannou of Megabet yesterday told the Cyprus Mail, “this legislation should have already been introduced. It’s good for the market and in my opinion, the main aim is to stop illegal betting, which is the biggest problem in our industry.”
He added that, “it is a necessary response to current market conditions. Overseas, internet betting has really taken off but it is prohibited in Cyprus, even though it’s very hard to police. This means that Cypriot betting companies have been at a disadvantage. Over the past five to six years, we have seen fewer people betting in legal shops, even though gambling has been on the rise. This new legislation will try to correct this anomaly.”
On the subject of the market being opened up, Ioannou felt this would be a good move. “Another race track on the island is a great idea as the market needs competition, rather than a monopoly. I would encourage other operators.”
When asked if he was in favour of foreign bets, Ioannou explained that, “betting on foreign races has been going on illegally for many years in Cyprus. When the new law comes into effect, there will be no incentive to bet illegally as betting on foreign races can then be carried out through approved shops.”
However, he issued a note of caution saying that, “in terms of the betting companies themselves, this legislation might not be good for profits as the tax will be reduced or abolished. A new tax of 15 per cent on gross profit (the difference between stakes and winnings) will have to be paid by the betting companies. In the short-term, we don’t anticipate any improvement in profitability.”
The General Manager of Royal Highgate, Yiannakis Pavlides joined Ioannou in support of the changes. “By reducing tax, illegal betting will be clamped down on. We are the only country in the EU with such high taxes, specifically 25 per cent on football bets, which drives people underground. I am in agreement with abolishing the tax and I also support placing bets on foreign horse races, as this will give more opportunities to players, who won’t have to go online. At the moment we only have a certain amount of games available to players, but if the law is more flexible we will have the opportunity to introduce new games and bets.”
