Cyprus wants to arm its police with broad new powers to help combat illegal gambling operations. New legislation being discussed in parliament would allow police to shut down venues where suspected illegal gambling was taking place without waiting for a judge’s blessing.
Earlier this year, police shut down an illegal gambling hall operating in the island’s British Sovereign Base Area, the third time they’d shut down the same operation only to see it reopen within days. Police also shut down a number of illegal betting shops in Nicosia and Paralimni in May.
The new law, which politicians expect will pass before they break for summer, would also see illegal gambling proprietors face maximum sentences of five years in prison and fines of €300k. The northern half of Cyprus, which is controlled by Turkey, has allowed casino gambling for years but the Greek-controlled southern half of the island won’t issue its first casino license until March or April of next year.
Would-be applicants for the Cyprus casino will have to ante up €50m to submit a bid. The license will be good for a period of 15 years with a further 15-year option. The license holder will also be allowed to operate a number of smaller satellite branches in other towns in the Greek half of the island. The casino will pay 15% of revenue in tax to the state. Once the initial 15-year exclusivity period expires, the state will have the option of issuing casino licenses to other firms.
Legislators in Greece also want a crackdown on illegal gambling after figures from the Greek Gaming Oversight and Control Commission indicated the legal Greek gambling market had shrunk 37% in the past five years, falling from €8.7b in total gambling turnover in 2009 to just €5.5b in 2013. General Secretary for Transparency Giorgos Sourias claims a conservative estimate of illegal betting market turnover would be between €4b and €5b, with between 60k and 100k gambling machines in operation at illegal shops. A further €1b is wagered via unauthorized online gambling sites.
On Tuesday, Ekathimerini quoted Sourias saying the head of the Hellenic Gaming Commission had assured him that steps were being taken to rein in “organized crime rings operating without constraint.” Sourlas told new Public Order Minister Vassilis Kikilias that illegal gambling was “harming the national economy and acting as a mechanism for laundering ill-gotten gains.” Ironically, similar laundering claims have been leveled at Greek betting monopoly OPAP, yet Sourias made no mention of the firm, from which the government earns a 30% tax haul. Just a coincidence, we’re sure.
