There are 24 casinos operating in the Turkish north of the island of Cyprus, and a draft proposal made to the owners seeks to tighten regulations. Earlier this year the British Government sent a fact-finding mission to Cyprus as money laundering by the casinos, particularly from heroin sales in the UK, is a worry to the authorities. In response to the report from the UK officials, the advisor to the Turkish Cypriot economic department has proposed measures that will make an income declaration mandatory for casinos for tax purposes.

Further measures include the posting of two appointed inspectors at each casino and a €320 (US$391) membership fee for patrons. A 13-man task force from the state planning organization, the development bank and lawyers has been formed in an attempt to bring the Cyprus casinos in line with EU regulations. Previous attempts to control the casinos, which have been operating in northern Cyprus since 1976, have never reached the legislature, but now the Turkish sector of the island wants integration with Europe.

With this aim officials have already been sent overseas to look at possible regulatory templates, and EU economic rules have provided guidance. The draft law is being considered by the casino owners but is unlikely to get overwhelming approval as the membership fee would prevent many casual gamblers and tourists from going to the casinos. The Turkish Cypriot administration, however, is starting to look further than casino profits. A new gambling law should raise money through taxation and bring more foreign investment with the implementation of stricter economic practices.

The sweetener for the casino owners in the draft bill is a proposal that citizens in the north be allowed to gamble, which at present is prohibited. There have been a series of meetings arranged between the casino operators, the government in the north and non-governmental organizations to consider the bill. Should agreement be reached then that will be just the first step in a protracted process to regulate casinos in Cyprus. (E-09.15.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage