Under the new agreement, the Greek company OPAP will become the sole legal operator in Cyprus, with all other operators banned.
OPAP, which has been operating in Cyprus since 1969, already offers a variety of games through its network of over 200 land-based stores.
OPAP executive chairman Kamil Ziegler said: “We are particularly happy to have signed the new fifteen-year concession agreement with the Republic of Cyprus.
“As a group, we have been active in Cyprus for 55 years, providing popular games and engaging experiences to our customers, supporting common goals and implementing social initiatives with significant impact.
“Our commitment is that we will continue on the same path.”
The new €447 million contract will allow OPAP to operate under a stricter regulatory framework overseen by the National Betting Authority. The government emphasized that the deal aims to protect the public interest, enhance market supervision, combat illegal gambling, and promote responsible gaming.
OPAP will pay an annual performance-based license fee, starting with an initial payment of €4.2 million, with subsequent installments due each January. Additionally, the company will pay taxes equal to 22.5% of its gross profits and contribute 5% to sports, social, and community events. The agreement requires OPAP to generate at least €20 million for the island’s economy.
Finance Minister Makis Keravnos highlighted that the agreement safeguards Cyprus’s interests by ushering in a new era for the gambling sector. He noted that while gambling will be strictly supervised, it will continue to generate significant revenue for the state treasury.
Despite these conditions, the agreement faced criticism from Auditor General Odysseas Michaelides, who argued that the contract should have been valued at €700 million instead of €447 million.
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