Cypriot MPs have passed a contentious bill raising the betting levy from 3% to 4.5% of net earnings, aiming to funnel additional funds into football clubs and youth academies. The decision, approved by a narrow margin—27 votes for and 25 against—has ignited both support and sharp criticism across political and public circles.
The additional levy revenue will be distributed through the Cyprus Sports Organisation (CSO) and directed to the Cyprus Football Association (CFA), with 97 football clubs across various leagues expected to benefit. But the bill raises deeper questions: is this a much-needed investment in sports, or does it unfairly reward clubs riddled with financial mismanagement?
Football Gains, but Tax Debts Loom Large
One of the bill’s most contentious points is the absence of conditions requiring clubs to address their longstanding tax debts. An Audit Office report revealed that 14 out of 19 indebted clubs continue to accumulate new debts, even after failing to adhere to repayment agreements. Currently, the outstanding tax owed by Cypriot clubs is estimated to exceed €32 million ($33.5 million).
Critics, including independent MP Alexandra Attalides and Green Party MP Stavros Papadouris, argue that the legislation undermines financial discipline. “We’re effectively rewarding irresponsibility,” said Papadouris, stressing the need for clubs to adopt sound financial management practices. Without reforms, opponents say the levy increase risks reinforcing poor fiscal habits.
Akel MP Aristos Damianou echoed these concerns, calling for stricter conditions to ensure the funds are used transparently. “Public support must come with accountability,” he insisted.
EU Compliance Questions Raise Concerns
Another thorny issue is whether the levy increase complies with EU state aid laws. The European Union generally prohibits direct financial support to private enterprises, including football clubs, to prevent unfair competition. If the funding mechanism is deemed to breach these rules, Cyprus could face legal challenges.
While government officials have yet to address this risk in detail, some MPs argue that the levy supports broader community development rather than directly propping up private businesses. Still, compliance remains a grey area that could complicate the bill’s implementation.
The Case for Supporting Football
Despite the criticism, proponents of the bill argue that football clubs deserve financial backing, given their role in driving betting revenue. Diko MP Christos Senekis defended the increase, saying clubs “take the financial risks that fuel betting profits but receive little in return.”
Disy MP Haris Georgiades took a broader view, framing the move as an investment in sports development. He acknowledged the tax debt issue but suggested improved tax collection processes rather than withholding funds from struggling clubs.
For supporters, the levy increase represents more than just money. It’s seen as a necessary step to secure the future of Cypriot football—nurturing young talent and keeping smaller clubs afloat.
The Numbers and Who Benefits
Here’s what the new betting levy means in practice:
- Previous levy: 3% of net earnings from betting operators
- New levy: 4.5% of net earnings
- Beneficiaries: 97 football clubs, from top-tier teams to grassroots organisations
- Administered by: Cyprus Sports Organisation (CSO)
The expected revenue boost could provide essential funding for youth academies, helping to develop future players and sustain local leagues. Smaller clubs, which often struggle financially, could particularly benefit from the increased funding pool.
However, critics are quick to note that without proper oversight, there’s little assurance the money will go where it’s needed most.
A Divisive Decision with Uncertain Outcomes
In the end, the vote highlighted deep divides on the issue. While 27 MPs supported the levy increase, a close 25 stood in opposition, underscoring widespread doubts about fairness, accountability, and long-term sustainability.
Opponents question why clubs with unpaid tax debts should receive further financial support, particularly when many responsible businesses see no such relief. Independent MP Alexandra Attalides put it bluntly: “What message are we sending to those who play by the rules?”
For now, the government faces the challenge of balancing its investment in football with ensuring financial discipline. The new levy could provide a lifeline for struggling clubs and youth programmes, but whether it becomes a genuine investment in Cypriot football or a missed opportunity remains to be seen.
