Cyprus MPs are set to vote today on a proposal to exempt casinos from a nationwide cash transaction limit of €10,000, passed by Parliament last December.

The exemption would apply until EU Regulation 2024/1624 comes into force across all member states in July 2027.

The bill, tabled by Nikolas Papadopoulos (Diko), Marinos Mousiouttas (Dipa), Disy MP Efthimios Diplaros, and independent MP Andreas Themistocleous, drew strong opposition from key institutions, who argue that such an exemption poses serious risks linked to money laundering and tax evasion, as mentioned in outlet Economy Today.

However, casino operators argue the concerns are misplaced, pointing to a strict supervisory and regulatory framework already in place.

All activity in the resort casino and its three satellite venues is monitored around the clock by the Cyprus Gaming and Casino Supervision Commission, with compliance checks mirroring those of the banking sector.

Customers—particularly high-rollers from Israel and Arab countries—must provide full documentation before transacting.

Tax records, salary details, and source-of-wealth certificates are required, and all checks take place before money enters the casino system.

According to industry sources, these controls make it nearly impossible to bypass anti-money laundering mechanisms.

The claim is that these measures, alongside continuous supervision, minimise—if not eliminate—any opportunity for criminal misuse.

At the same time, industry stakeholders challenge widespread reports about ‘millions’ in cash transactions, arguing that the numbers reflect gross turnover, not actual cash inflow.

A single player may exchange €500 for chips, place a series of bets, and then cash out multiple times—each transaction counted separately in the system.

The same applies to slot machines, where every spin is logged, even though the average return to player stands at 94–96 per cent.

Moreover, the current law applies to cumulative transactions within a 24-hour period.

A customer who moves between tables with €1,000, cashing out several times, may easily exceed the threshold.

Payouts over €10,000 must be made via banker’s cheque—something not required in other European casinos.

Operators warn that this may push high-value players towards casinos in the occupied north or to third countries with looser rules, ultimately harming Cyprus’ tourism and tax revenues.

Despite industry reassurances, several institutional bodies remain unconvinced.

The Central Bank of Cyprus (CBC) warns that higher cash thresholds in casinos raise reputational and money laundering risks.

Mokas head Maria Kyrmizi-Antoniou highlights the lack of an updated national risk assessment on casinos and reiterates the Unit’s position in favour of limiting cash transactions across the board.

Similarly, Tax Commissioner Sotiris Markides calls the exemption a threat to tax transparency, while the Cyprus Bar Association questions its constitutionality and the principle of equal treatment under the law.

CySEC chairman George Theocharides also doubts whether the exemption complies with EU law and warns that it undermines the core purpose of the legislation.

Nevertheless, the government supports the exemption.

The Finance Ministry notes that the restriction has already negatively affected the operation of the City of Dreams Mediterranean, which attracted more than three million visitors since its July 2023 launch and paid €54 million in taxes in 2024.

The Deputy Ministry of Tourism echoes the concern, warning of unequal competition with casinos in other countries and a likely shift of customers to the north, where no such restrictions apply.

The proposal faces a tight vote in Parliament, as government-affiliated MPs and Democratic Rally members are divided, while Akel, the Greens, and independent MP Alexandra Attalidou have voiced clear opposition.

The positions of Elam and independent socialist MP Kostis Efstathiou remain unclear.

If passed, the exemption may safeguard casino revenues and help prevent customer outflow to unregulated venues in the occupied territory.

However, it is expected to draw criticism from domestic institutions and may raise compliance concerns at the European level.

If rejected, Cyprus will align more closely with EU anti-money laundering directives, reinforcing transparency and oversight.

The casino industry, however, is likely to face increased pressure, potentially affecting both tourism flows and public revenue in the years leading up to the 2027 EU regulation deadline.