Three Month Delay for Cyprus Online Gambling Ban

December 29, 2010 | News Category: Gaming Law

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Cyprus has been hoping to ban online gambling, or at least nearly all forms of online gambling, in their country. After submitting their proposal to the European Commission in what they thought was enough time to receive a ruling before the end of 2010, not only have they not been given a ruling, but the expected date for a response is three months away, half way though March 2011.

The delay is taking place because there have been other European Union member states that have had comments to make, or have expressed opposition to the Cyprus online gambling ban.

The online gambling that Cyprus wishes to ban includes online slot machines, online poker, and some other online casino games. Cyprus plans to continue to allow sports betting to take place.

Ionas Nicolaou said: "The interventions and comments by Malta and the United Kingdom were made purposely as online gaming is licensed in both countries and they receive huge amounts of money for those licenses."

Until now, the gambling legislation in Cyprus has had the problem that there have been loopholes that have allowed online gambling when it has been provided via providers located in other countries. This has, in effect, made online gambling almost totally unregulated in Cyprus up until now.

The European Union will only allow member states to ban online gambling if the state can prove that they wish to do so because they wish to protect their citizens. The European Commission will not accept banning online gambling in order to protect land based casinos. Nicolaou said: "The governing party must be careful because the EU will only allow any regulation or ban according to the EU treaty and EU law and not because of our government's views on traditional casinos." Essentially, governments may not ban online casinos when they consider that they are simply substitutes for land based casinos.

Although there is no final answer from the European Commission at this time regarding whether they will accept the online gambling ban legislation proposed by Cyprus, the delay has frustrated the Cypriot government.

Part of the clarification requested by the European Union includes questions regarding how payment will take place between the customers and the regulated online gambling sites, and clarification regarding the small number of licensees that would be allowed to operate in Cyprus under the new legislation.

Although Cyprus may find the wait frustrating, there is nothing they can do but wait for the European Commission to consider the objections that were raised, even though it means that there is this three month delay.