Cyprus lawmakers have approved a new bill to increase the levy on sportsbook winnings. This new legislation is set to raise the betting tax from 3% to 4.5% of net earnings on licensed betting operators. The additional funds are aimed at supporting football clubs and youth academies, managed by the Cyprus Sports Organisation (CSO) and distributed to the Cyprus Football Association (CFA).
The new regulation, proposed by the country’s finance ministry, passed with 27 votes in favor from the Ethnikó Laikó Métopo (ELAM), Dimokratikós Sinagermós (DISY), and Dimokratikó Kómma (DIKO) parties, while 25 lawmakers voted against the bill.
The extra funds generated by the heightened levy will be allocated to the Cyprus Sports Organisation, which will channel them into the Cyprus Football Association, enabling support for professional soccer clubs and their academies.
Policymakers say that this change to Cyprus Betting Laws 2019 and 2020 will benefit 97 local football clubs around the country. However, this decision has faced criticism for failing to address the tax debts of football clubs.
Currently, football clubs are burdened with €35.6 million ($37.3 million) in taxes, with €4.1 million ($4.3 million) of that amount accumulating in the past year following the introduction of the latest debt repayment scheme. These football clubs have until June 2037 to settle these debts.
DISY MP Haris Georgiades pointed out that most betting activity revolves around foreign football. He stated: “Finally, the law that applies to every citizen must be enforced for the clubs as well.”
He further stressed that clubs need to comply with the state’s repayment schemes and criticized those that fail to fulfill their obligations. Georgiades emphasized that AEK Larnaca football club is a prime example of responsible management, noting that this club doesn’t owe a single euro in tax.
Stefanos Stefanou, AKEL General Secretary, highlighted that five clubs had not made a single payment under the latest scheme. He added that this “bubble” is bound to burst. According to ELAM MP Sotiris Ioannou, betting revenues for 2024 are expected to hit €150 million ($157.4 million), with the state set to receive €15 million ($15.7 million) and sports federations €2 million ($2.09 million).
Critics, including independent MP Alexandra Attalidou, argue that this new law breaches competition rules between clubs and European subsidy regulations. She stated: “It is inconceivable for the state to reward those who do not pay their debts.”
This new regulatory framework will apply to both land-based and online betting operators, with the revenue directed towards clearing football clubs’ tax debts.
Original article: https://www.yogonet.com/international/news/2024/12/18/88914-cyprus-lawmakes-approve-bill-to-increase-levy-on-spoortsbook-winnings-to-aid-football-clubs
