Cyprus Lawmakers Agree to Raise the Sports Betting Levy

Cyprus MPs have greenlit a bill that would increase the levy on sportsbooks’ winnings. This controversial measure seeks to increase the money provided to soccer clubs and academies.

The Levy Will Increase by 1.5%

The bill, which was proposed by the finance ministry, passed with 27 votes in favor and 25 against. It would increase the fee sports betting companies pay to the National Betting Authority by 1.5%, effectively raising the levy to 4.5% (currently 3%).

The additional money raised by the increased levy will be provided to the Cyprus Sports Organization, which will inject them into the Cyprus Football Association, allowing it to support professional soccer clubs and their academies.

Lawmakers believe that this change to Cyprus’ Betting Laws of 2019 and 2020 will benefit the sector, providing additional funds to some 97 local soccer clubs.

In the meantime, a separate amendment will see more money provided to other team sports too.

Despite criticisms, the bill was described as a way to end the injustice surrounding soccer and soccer betting. According to its proponents, sportsbooks profit from the sector while providing it with minimal benefits.

Some Say Clubs Should Be Treated More Strictly

The soccer measure was harshly critiqued in Cyprus. While such critique usually comes from the payers of such levies, in this case, a wider group of people implied that the increased levy will “reward soccer clubs for not paying their taxes.”

For context, soccer clubs in the country owe some $33.5 million in unpaid taxes and social insurance payments. To make matters worse, some clubs continued to accumulate debts, while others have yet to submit a single payment since the previous repayment plan was agreed.

While clubs have until June 2037 to settle the debts, critics have been disgruntled by the new proposal. Some supported a separate amendment, which would have introduced requirements that teams have had to fulfill before they were eligible to receive funds from the government. This proposal would have required clubs to settle their debts beforehand.

This measure, however, was rejected.   

The Progressive Party of Working People (AKEL), which proposed setting requirements for clubs receiving government funds, was generally unhappy with soccer clubs’ seeming lack of financial culture.

AKEL general secretary Stephanos Stephanou slammed the teams’ lax spending habits and pointed out that many of them are spending more than their European counterparts to onboard expensive foreign players. He added that this “bubble” is bound to burst.