MPs on Thursday narrowly approved a controversial bill to raise the levy on net betting earnings, aiming to provide increased financial support to football clubs and their academies.
The bill passed with 27 votes in favour, while 25 MPs voted against.
The legislation, submitted by the finance ministry, amends the Betting Laws of 2019 and 2020. It proposes a 1.5 per cent increase on the levy paid by licensed betting operators to the National Betting Authority (NBA) from 3 per cent to 4.5 per cent.
Under the new arrangement, the additional funds will be allocated to the Cyprus Sports Organisation (CSO), which will subsequently distribute them to the Cyprus Football Association (CFA) to support clubs across various leagues and their youth academies.
The reallocation will benefit 97 football clubs across all leagues and their academies.
A separate amendment, approved with 47 votes in favour and four against, ensures a higher share of funding for other team sports as well. However, a proposal by Akel to introduce prerequisites for clubs to receive funds, such as settling tax debts, was rejected.
The bill has sparked widespread criticism, with opponents arguing it effectively rewards football clubs for failing to pay their taxes. Currently, Cypriot football clubs owe over €32 million in unpaid taxes and social insurance contributions, with most failing to adhere to previous repayment plans.
An Audit Office report revealed that out of the 19 clubs which owed unpaid taxes in 2023, five had not made a single repayment since the plan was agreed, and 14 have since accumulated new tax debts. Under the current repayment plan, the deadline for settling these debts is set at June 2037.
Akel MP Aristos Damianou called for stricter conditions, saying that clubs benefiting from public funds must demonstrate fiscal responsibility. He said that his party’s amendments enhance transparency, public accountability, and parliamentary oversight.
Other critics raised concerns about fairness. Independent MP Alexandra Attalides said the law favours clubs that fail to pay their dues over those that do. Meanwhile, Edek leader Marinos Sizopoulos accused the state of indirectly helping clubs cover their tax debts, calling it an unfair advantage over other businesses.
Concerns have also been raised about compliance with EU law. MP Kostis Efstathiou said he disagrees with the proposal which violates a basic concept of EU law on the prohibition of state aid to companies such as football clubs.
This is related to concerns that the increase in taxes on takings by betting shops to help football clubs pay their tax debts may constitute illegal state aid. The European Commission has previously taken a critical stance against similar measures in other member states.
Proponents defended the bill as a necessary step to address what they see as an injustice for football clubs. Diko MP Christos Senekis argued that clubs take financial risks to support football, which betting companies profit from, yet receive minimal returns. He dismissed concerns about linking the bill to tax repayment.
Disy MP Haris Georgiades also spoke of a mistake on the part of the state to link the bill to union debts. Instead, he said the right-wing party will support the bill because it is an investment in sports and asked the tax collector to do his job strictly and properly for the few clubs that do not pay their taxes.
Meanwhile, critics like AKEL General Secretary Stephanos Stephanou referred to systemic issues in Cypriot football. He criticised clubs’ unsustainable spending habits, noting that local teams spend much more than big European clubs while highlighting the reliance on foreign players at the expense of local talent. “We’re inflating a bubble that will eventually burst,” he said, calling for a shift towards nurturing domestic players.
Explaining his negative vote, Green Party MP Stavros Papadouris stated that the only way to strengthen football is to teach clubs the principles of proper financial management.
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