ONLINE casino operators yesterday charged that a bill banning their services appeared to favour a large betting organisation and the state legal services’ official who drafted the proposal was linked to the outfit.
The bill, which bans online casino games and regulates betting, was submitted to parliament yesterday.
At the same time, members of the House Legal Affairs Committee were handed a letter signed by eight companies offering online casino games, alleging that the bill favoured OPAP, a private Greek gaming company which operates on the island through its local counterpart, set up in 2003 following a bilateral agreement.
“The unfavourable provisions of the bill concern the ban on Cypriot companies, except OPAP, to freely provide online games of chance, even if they have secured a legal permit from an EU member-state,” the letter said.
The companies said the bill discriminates in favour of OPAP, which also offers random number generator games like KINO, LOTTO, PROTO, JOKER, EXTRA 5 and SUPER 3.
The companies alleged that the state attorney who handled the bill seemed to be related to “officials of private companies that are directly linked to OPAP or provide exclusive technical support”.
These relations “we suspect, brought about the introduction of the unfavourable provisions and possibly affected the ability of the officer to exercise their duty impartially and fairly,” the letter said.
The letter had been presented to MPs by a court bailiff, a move that did not go down well with Legal Affairs Committee chairman Ionas Nicolaou.
“The committee members received today – I would say in an unacceptable manner – the reactions of companies who disagree with the bill,” Nicolaou said. “The committee members will examine all reactions, wherever they come from. Our duty is to listen to everyone … but I don’t think they used the proper means to do it.”
He added: “reservations were voiced about the person who drafted the bill; we will examine all aspects that are within the committee’s authority.”
The bill had been examined by the Legal Affairs and Institutions Committees before being sent to the European Commission for approval.
It returned with some proposed changes – such as allowing betting companies from abroad to supply online gambling services, provided they install a special server in Cyprus, which can be monitored by the state’s Gaming Board.
“Foreign firms will continue to operate in Cyprus, but not supply services that are banned in the bill,” said Nicolaou.
Nicolaou said the aim was to approve the bill before parliament dissolves, 40 days before the May 22 parliamentary elections.
Finance Committee, DIKO’s Nicolas Papadopoulos, said his committee would have to look into the bill’s provision for a 3.0 per cent tax on certain bets.
“As this bill includes taxes, it will also be examined by the finance committee,” he said. “Tax on betting is a very serious matter and we are concerned about the fact that this tax includes just a certain number of bets; for example, horse racing isn’t included. This will all be explained when our Committee examines it.”
Papadopoulos also criticised the administration for having no problem in taxing these bets, yet it insisted on putting its foot down on the creation of proper casinos in the government-controlled areas.
“If the state receives revenue from these shops, how can it justify its complete refusal to create casinos in Cyprus?” he said. “This bill resoundingly proves the hypocrisy of refusing to create casinos in Cyprus. We should get over dated Puritanism and consider creating casinos.”
