Cyprus Regulator Deploys Undercover Inspectors to Betting Shops
Cyprus regulator has placed 150 undercover inspectors into betting shops to detect unlicensed activity and protect minors.
LISTEN TO THIS ARTICLE:The National Betting Authority (NBA) of Cyprus has expanded its on-the-ground enforcement, contracting private inspection services and embedding 150 agents disguised as ordinary customers across retail outlets. The move, disclosed during parliamentary hearings on the regulator's 2026 budget, is part of a stepped-up compliance drive that mixes covert visits with routine checks and online monitoring.
Inspectors enter betting premises without advance notice to evaluate staff conduct, verify licence status, look for signs of illegal betting and ensure minors are not on site. According to the NBA, the undercover programme is complemented by digital surveillance of platforms frequented by players and targeted inquiries into potential money-laundering risks.
An NBA spokesperson said: "Proactive, on-site inspections give us a clearer picture of how betting operators comply with licence conditions in practice. These covert visits are intended to deter unlicensed operators and protect vulnerable customers, particularly minors."
During a recent session of the House Finance Committee, NBA officials reported that regulators issued fines totalling €46,000 in the previous year. Roughly €26,000 of those penalties were tied to operators found to be operating without proper licences, while the remainder related to breaches such as allowing underage individuals on premises.
Industry observers welcomed the emphasis on enforcement but urged balance. Maria Antoniou, an independent gambling consultant based in Nicosia, said: "Stronger enforcement is necessary, but regulators should pair covert inspections with clear guidance for smaller operators. Rapid, transparent remediation helps legitimate businesses comply rather than simply penalising them."
Related: Heated Debate as Northern Cyprus MPs Ease Casino Laws
Financial Impact and Legislative Moves
Parliamentary figures cited in the session underline the scale of betting in Cyprus: consumers placed approximately €1.3 billion in wagers in the past year, with €1.17 billion returned as winnings. A recent rise in the betting tax helped state receipts from the sector climb to around €6 million, up from about €3.2 million the previous year.
Projections presented to lawmakers forecast gambling revenues of €71.85 million for the current fiscal year, a rise of about 28% (€15.73 million) compared with 2025. Further growth is anticipated, with estimates of €75.27 million in 2027 and €78.59 million in 2028. The estimates break down expected receipts into betting tax (€53 million), licence fees (€8.2 million) and other sector contributions (€10 million).
The finance ministry noted that a draft bill proposed roughly a year ago remains under review. The legislation would introduce new betting products and tighten measures around responsible gambling and child protection; ministry officials stressed that online casino games are not included in the current scope of the bill. Separately, a revised agreement with OPAP Cyprus is projected to bolster tax receipts, with the operator expected to pay millions in licensing and supervision contributions under the new terms.
Eleni Georgiou, a senior policy analyst at a regional regulatory think-tank, commented: "As the market expands, tax policy and enforcement must work together to channel revenue toward consumer protections. Clear rules and consistent inspections will be essential if Cyprus wants to grow the sector responsibly."
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What Operators and Regulators are Watching
Operators will be closely monitoring the NBA's enforcement pattern, particularly how fines and licence suspensions are applied following covert detection. Smaller land-based betting shops – classified under Class A licences – and online operators under Class B licences face a 10% tax on net earnings, creating a fiscal incentive for accurate reporting and compliance.
Regulatory experts say the next year will test whether covert inspections reduce unlicensed activity or simply push some operators further underground. "The effectiveness of undercover operations depends on follow-through: robust investigations, proportionate sanctions and accessible remediation pathways", Antoniou added. "Transparency about findings and common compliance standards across the industry will reduce disputes and improve public confidence."
As Cyprus prepares to finalise amendments and budget allocations, the industry and parliament will be watching whether enforcement, taxation and new legislation converge to create a more tightly regulated betting market.
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