Cypriot Lawmakers Call for Revisions or Withdrawal of Bill Increasing Sports Betting Profits Allocation to Football Clubs

This week, Cypriot lawmakers demanded significant changes or the outright withdrawal of a bill that proposes increasing the share of sports betting profits allocated to football clubs from 1.5% to 3%. Introduced by the Finance Ministry, the bill has sparked concerns about potential state aid violations and fairness in addressing tax debt repayments, leading to a heated debate in the House Finance Committee on Monday.

Lucy Herodotou Mouskou, director of financial management at the central government’s finance ministry, clarified that the proposed increase for football clubs would be contingent on using the funds to pay off tax obligations.

However, State Aid Commissioner Stella Michaelidou raised concerns about the bill, suggesting that it may include elements of state aid. She noted that the bill lacked sufficient safeguards to ensure football clubs would actually repay their debts. Michaelidou revealed that she only learned of the bill through media reports and quickly wrote to the Finance Ministry to request that her concerns be formally considered. She emphasized the need for a thorough assessment of the football clubs’ capacity to settle their debts and warned against sending the wrong message to clubs about leniency regarding tax obligations.

The Cyprus Sports Organisation (KOA), on the other hand, expressed support for the increased contribution, affirming that the funds would be properly directed to football clubs. This position was informed by a briefing from the Cyprus Football Association (CFA). A representative of the CFA told the committee that the new allocation would ensure that clubs receive what they "rightfully deserve in return for their contributions to the betting industry."

Despite this, the bill faced criticism from several quarters. Disy MP Onoufrios Koulla expressed his opposition, calling it paradoxical to raise taxes solely to help football clubs pay off their debts. While he supported increasing the clubs’ share, he opposed the misuse of funds, arguing that only clubs meeting their financial obligations should benefit from the levy.

Akel MP Aristos Damianou was more blunt, describing the bill as a violation of “good administration” and urging the government to withdraw what he labeled an "unacceptable piece of legislation." His party colleague, Akel MP Christos Christofides, echoed this sentiment, claiming that the bill was designed to benefit a few select clubs currently in debt.

Elam MP Sotiris Ioannou also criticized the proposal, describing it as "flawed in its conception." He supported aiding clubs but argued that the bill should not be used to cover tax liabilities.

House Finance Committee chair Christiana Erotokritou emphasized the importance of addressing the concerns raised by the State Aid Commissioner. She stated that further amendments were necessary and that it was unacceptable to increase the levy simply to cover outstanding tax debts.

Lastly, Greens MP Stavros Papadouris expressed his surprise over the discovery of state aid issues, noting that previous reassurances had suggested this would not be a problem.

The debate over the bill has left lawmakers divided, with calls for significant revisions or even its complete withdrawal. By fLEXI tEAM