The levy increase aims to strike a balance between fostering football development and addressing financial challenges
In a closely contested vote, Cypriot MPs have passed a bill raising the levy on licensed betting operators from 3% to 4.5% of net earnings. The additional revenue is earmarked to support football clubs and their youth academies, with funds managed by the Cyprus Sports Organisation (CSO) and distributed to the Cyprus Football Association (CFA).
The amended Betting Laws of 2019 and 2020 are expected to benefit 97 football clubs across various leagues. However, the decision has faced backlash due to the lack of conditions requiring clubs to address their significant tax debts, which exceed €32 million ($33.5 million).
An Audit Office report revealed that many clubs have not adhered to repayment plans, with 14 out of 19 indebted clubs accruing new debts. Critics argue that the levy increase rewards fiscal irresponsibility, while proponents view it as a necessary correction to support the development of football.
Akel MP Aristos Damianou advocated for stricter conditions to ensure transparency and accountability in fund allocation. Green Party MP Stavros Papadouris emphasized the importance of teaching clubs sound financial management to secure their long-term sustainability. Concerns were also raised regarding compliance with EU state aid laws, which prohibit direct financial support to private enterprises like football clubs.
Notably, the bill passed with 27 votes in favor and 25 against. Independent MP Alexandra Attalides and others questioned the fairness of assisting clubs that fail to meet financial obligations, potentially giving them an advantage over responsible businesses.
Defending the measure, Diko MP Christos Senekis argued that football clubs bear risks that fuel betting profits but receive minimal returns. Disy MP Haris Georgiades supported the bill as an investment in sports while urging stricter tax collection efforts.
The levy increase aims to strike a balance between fostering football development and addressing financial challenges, but it has ignited a debate on accountability and fiscal responsibility in Cypriot sports.