Cyprus Betting Revenue Hits €1 Billion in 2023

 Cyprus’ betting sector witnessed growth in 2023, with the gross betting revenue reaching €1,109,209,082. This represents a 16% increase compared to the previous year (€959,557,906). The rise in revenue can be attributed to various factors, including the rise in both land-based and online betting activities.

The betting industry in Cyprus is divided into two categories: Class A (land-based betting) and Class B (online betting). In 2023, Class A recipients generated a total gross revenue of €90,487,835, while Class B recipients accounted for €235,113,629. These figures indicate an 8% increase for Class A and an impressive 17% increase for Class B compared to the previous year.

The profits of Class A and B players also experienced a significant boost in 2023, totaling €291,754,064. This represents a 10% increase compared to the corresponding period of the previous year. Class B players contributed the largest share of profits, amounting to €216,072,279.

Analyzing the quarterly revenue comparison for 2023, we observe a consistent upward trend. In Q4, the gross betting revenue of Class A and Class B recipients reached €325,601,464, marking a 10% increase compared to the same period in the previous year (€296,607,170).

Examining the betting receipts, we find that Class A and B receipts amounted to €33,847,400 in Q4 of 2023, reflecting a 9% increase compared to the corresponding quarter of the previous year (€30,934,442). Class A betting receipts reached €14,806,050, indicating an 8% increase, while Class B betting receipts amounted to €19,041,349, showing an 11% increase compared to Q4 2022.

The total number of licensed properties in Cyprus increased slightly by 2% in Q4 of 2023 compared to the corresponding quarter of the previous year. Currently, there are 490 licensed properties across the country. Nicosia leads with 170 properties, followed by Limassol with 139, Larnaca with 90, Paphos with 54, and Famagusta with 37 properties.

The betting industry in Cyprus has also created employment opportunities, with the number of people employed in licensed premises reaching 1,476. This represents a 4% increase compared to the corresponding period of the previous year.

Efforts to combat illegal gambling activities have intensified, with a 3% increase in the number of illegal websites blocked in Q3 of 2023. The total number of blocked illegal betting service websites now stands at 19,073.

Romanian lawmakers vote to ban slot machines in localities with a population under 15,000

The ruling majority in Romania’s Chamber of Deputies tabled on short notice and quickly endorsed a bill under which the slot machines will be banned in localities with a population of under 15,000 residents.

The ruling Social Democratic Party said it is a first step towards regulating the gambling industry, while the opposition party USR claimed that the bill is not sufficient and an attempt to prevent a genuine law that would regulate the industry.

The lawmakers had previously discussed banning advertising promoting gambling and banning the betting shops and slot machines in the central area of the cities.

“The scourge of gambling does not exist only in localities with 15,000 inhabitants. Scams destroy millions of families throughout the country. We voted for this law, but until we adopt the correct solutions, we leave more than half of Romanians unprotected,” USR MP Diana Stoica pointed out.

The lawmakers of the ruling majority promised that more bills to regulate the gambling industry would follow.

Spain tightens scrutiny of tax returns on gambling winnings

 Spanish consumers must declare profits from online gambling winnings in 2023 self-assessment income tax returns.

The directive comes from the Agencia Tributaria (AEAT), the Tax Agency of Spain’s Ministry of Finance, where Director General Soledad Fernández is increasing scrutiny on profits from online gambling, cryptocurrency transactions, property rentals, and foreign income.

Before the 2023 income tax filing period, AEAT issued approximately 2.9 million notices to taxpayers, ordering them to declare profits from these activities.

This includes the first-ever notices concerning online gambling profits. AEAT has sent out 164,000 warnings about these profits, marking the Treasury’s first targeted effort in this area.

However, Fernández and AEAT have expressed greater concern regarding undeclared cryptocurrency trading profits, issuing one million notices to individuals.

In relation to gambling winnings, in 2022 the Ministry of Finance authorised AEAT to update Tax Module-190 to ensure the reporting of gambling prizes/winnings under €300, impacting 2023 tax filings.

The tax requirement for winnings of €300 now applies to Spanish taxpayers earning over €22,000 annually, reduced from the previous €1000 disclosure threshold.

For sports betting and online gambling winnings (casino/poker), AEAT enforces a five-tiered tax framework with rates set at 19% on winnings up to €12,450, 24% from €12,450 to €20,200, 30% on €20,200 to €35,200, 37% on €35,200 to €60,000, and 45% for winnings over €60,000.

With these changes, AEAT has streamlined the process for amending or submitting specific declarations on gambling, crypto, and foreign income transactions, assuring that ‘taxpayers can easily modify amounts in their filings, and the system will automatically take care of the rest’.

The Ministry of Finance faced criticism from the Partido Popular (PP), Spain’s Conservative Party and primary opposition, for allowing AEAT to modify tax modules on gambling, deemed as an ‘unnecessary and punitive tax on recreational consumers’.