After intense competition, Cypriot lawmakers approved a bill that raises the tax rate for licensed gambling operators from 3% of net income to 4.5%.
These additional funds are intended to support football clubs and their youth academies, and will be managed and distributed by the Cyprus Sports Organization (CSO) to the Cyprus Football Association (CFA).
The revised Gambling Laws of 2019 and 2020 promised to benefit 97 football clubs across all leagues. However, the decision has drawn criticism, particularly for its failure to impose conditions on clubs to address their substantial tax debts, which are estimated to exceed 32 million euros (approximately 33.5 million euros).
The Audit Office's report highlights that many clubs have failed to adhere to repayment plans, with 14 out of 19 indebted clubs incurring new debts.
Although supporters argue that raising taxes is a necessary corrective measure to support football, critics believe that it rewards financially irresponsible behavior.
Akel lawmaker Aristos Damianou advocates for stricter conditions to ensure transparency and accountability, while Green Party lawmaker Stavros Papadouris calls for teaching clubs proper financial management to ensure long-term sustainability.
There are also concerns about compliance with EU laws on state aid, which prohibit direct support to private enterprises like football clubs.
It is worth noting that 27 lawmakers voted in favor, while 25 voted against.
Independent lawmaker Alexandra Attalides and others have questioned the fairness of aiding clubs that fail to fulfill their financial obligations, potentially giving them an advantage over responsible businesses.
However, supporters like lawmaker Christos Senekis defend the bill, arguing that football clubs take on increased risks that boost gambling profits, yet see little return.
Disy lawmaker Haris Georgiades views the bill as an investment in sports and calls for strengthened tax collection.
Overall, this controversial new bill represents a complex attempt to address the financial challenges of Cypriot football, with support and criticism almost evenly divided.
