Cyprus is to grant first casino resort licence within a year

Cyprus is to grant its first licence for a casino resort within the next year.

Cyprus is to grant its first licence for a casino resort within the next year, news agency Reuters have reported.

The government announced on Friday that the casino resort is to be built in the south of the island where gambling has been strictly prohibited.

Many Greek Cypriots often cross into northern Cyprus, an occupied Turkish Cypriot state that is only recognised by Ankara and where there are several casinos.

The ruling party, the Conservatives, believe that allowing gambling is a vital aspect of tourism for the country and that it also creates jobs and attracts big spenders, particularly after last year’s international financial bailout.

Cyprus was previously run by a communist government that left power in 2013. They had refused to grant casino licences, despite strong interest from foreign operators. Indeed, today, gambling is still viewed as socially and morally undesirable among some Cypriots.

The island attracts approximately two million tourists a year, with the sector representing about 10 per cent of overall output.

Authorities have stated that they would invite expressions of interest in a two-stage selection process once approval of relevant legislation is approved by parliament.

“This will be one of the most important infrastructure projects in Cyprus in coming years,” Cypriot government spokesman Nicos Christodoulides said.

The licence will be valid for thirty years. The successful bidder will get an exclusivity agreement for fifteen years. The government would charge a 15 per cent tax on gross income from gambling, Christodoulides said in a statement.