The Lotteries & Gaming Authority (LGA) applies a 3-stage process in order to obtain a gaming license from Cyprus.
Phase 1- Fit & Proper Test & Business Adequacy
Phase 2- Business and Technical Ability Assessment
Phase 3 - Compliance Audit
Upon attainment of the license, the applicant then becomes a Licensee with a valid license to operate from Cyprus. Upon obtaining the license, the Licensee has the responsibility to maintain it in good standing from all aspects required by law.
Phase 4 - Maintenance of the License
In granting a licence the Authority may subject it to such conditions as it may deem appropriate, and after the grant of such licence the Authority may from time to time vary or revoke any condition so imposed, or impose new conditions.
A licence granted by the Authority may impose conditions relating to, inter alia–
- the proper operation of interactive games
- the protection of players
- the prevention of money laundering
- exigencies of public interest.
The granting of a licence is a revocable privilege, and no holder thereof shall be deemed to have acquired any vested rights therein or hereunder. The burden of proving the licensee’s qualifications to hold a licence shall rest at all times on the licensee.
It shall also be the duty of the licensee to obtain the prior approval in writing of the Authority before taking any of the following actions-
- assignment or transfer of a license
- changes in the Board of Directors
- resolution or application to the Court for dissolution
- transfer a qualifying shareholding in the licensee
- increase an existing holding
- reduce an existing qualifying shareholding
- the sale or other disposition by the licensee of its business
- the merger of the licensee with another company
- the reconstruction, division of a company
- the reduction of the nominal or issued share capital of the licensee or the increase or reduction of its voting share capital or any material change in voting rights in such licensee
- entering into any contractual arrangements with any supplier or entity providing services, if such supplier or entity will receive a percentage of the profits of the remote gaming operation, pursuant to such an agreement
- the surrender of the licence by the licensee during the licence term.
In all its actions, Licensee is also bound to maintain financial records, an updated control and gaming system, serious anti-money laundering (AML) policies & procedures, data protection procedures, responsible gaming and advertising policies. All this needs to be maintained in order to ensure the financial and personal protection of the player.
Our Gaming Team assists clients in all aspects related to the maintenance of a licensee including contract drafting, employment and labour law matters, advise related to data protection, AML and general legal advice.
The Lotteries & Gaming Authority (LGA) applies a 3-stage process in order to obtain a gaming license from Cyprus.
Phase 1- Fit & Proper Test & Business Adequacy
Phase 2- Business and Technical Ability Assessment
Phase 3 - Compliance Audit
Upon attainment of the license, the applicant then becomes a Licensee with a valid license to operate from Cyprus. Upon obtaining the license, the Licensee has the responsibility to maintain it in good standing from all aspects required by law.
Phase 4 - Maintenance of the License
In granting a licence the Authority may subject it to such conditions as it may deem appropriate, and after the grant of such licence the Authority may from time to time vary or revoke any condition so imposed, or impose new conditions.
A licence granted by the Authority may impose conditions relating to, inter alia–
- the proper operation of interactive games
- the protection of players
- the prevention of money laundering
- exigencies of public interest.
The granting of a licence is a revocable privilege, and no holder thereof shall be deemed to have acquired any vested rights therein or hereunder. The burden of proving the licensee’s qualifications to hold a licence shall rest at all times on the licensee.
It shall also be the duty of the licensee to obtain the prior approval in writing of the Authority before taking any of the following actions-
- assignment or transfer of a license
- changes in the Board of Directors
- resolution or application to the Court for dissolution
- transfer a qualifying shareholding in the licensee
- increase an existing holding
- reduce an existing qualifying shareholding
- the sale or other disposition by the licensee of its business
- the merger of the licensee with another company
- the reconstruction, division of a company
- the reduction of the nominal or issued share capital of the licensee or the increase or reduction of its voting share capital or any material change in voting rights in such licensee
- entering into any contractual arrangements with any supplier or entity providing services, if such supplier or entity will receive a percentage of the profits of the remote gaming operation, pursuant to such an agreement
- the surrender of the licence by the licensee during the licence term.
In all its actions, Licensee is also bound to maintain financial records, an updated control and gaming system, serious anti-money laundering (AML) policies & procedures, data protection procedures, responsible gaming and advertising policies. All this needs to be maintained in order to ensure the financial and personal protection of the player.
Our Gaming Team assists clients in all aspects related to the maintenance of a licensee including contract drafting, employment and labour law matters, advise related to data protection, AML and general legal advice.