In Cyprus, lawmakers and regulators are actively discussing strategies to prevent individuals receiving Guaranteed Minimum Income (GMI) from spending state welfare on gambling activities. The GMI, referred to locally as EEE, provides a residual payment to ensure that all residents meet their legal minimum income requirements.
Residents of Cyprus whose income falls below a certain threshold can apply for this benefit. This move to regulate gambling among welfare recipients isn't unique to Cyprus; a similar initiative was introduced in Brazil in 2025, aiming to curb the use of welfare benefits for gambling.
During a recent session of the House Audit Committee, members of parliament (MPs), alongside representatives from the Data Protection Commissioner, the Welfare Benefits Administration Service (WBAS), the Gaming & Casino Supervision Commission, and the National Betting Authority (NBA), convened to explore mechanisms for identifying GMI beneficiaries who gamble. The meeting discussed tightening regulations to safeguard vulnerable households and ensure that welfare funds are directed toward basic necessities, although this goal faces challenges related to legal, technical, and privacy issues.
Harris Tsangarides, the executive director of the Gaming & Casino Supervision Commission, noted that fluctuations in gambling activity have been observed, often correlating with the dates when GMI payments are issued. This led to considerations for a technical solution that would allow for cross-referencing GMI lists with casino membership records to monitor gambling behavior.
A concern raised by Giannis Vasiliadis, the WBAS director, highlighted the difficulties related to accessing GMI recipients’ banking information. Although the available data may indicate suspicious activity, it does not definitively confirm gambling transactions.
Maria Christofidou, the Data Protection Commissioner, mentioned that after a reassessment of a 2022 legal opinion, her office has identified a potential legal framework that could allow for greater access to banking data.
However, some MPs expressed apprehension about potential invasions of privacy related to these measures and the social stigma that might arise from exposing recipients' financial activities.
Christofidou also suggested the possibility of issuing special cards to GMI beneficiaries to facilitate in-person verification at gambling venues, but MPs cautioned against the potential for such a move to further stigmatize those on welfare.
While current gambling laws prohibit participation for minors and those deemed “financially vulnerable,” GMI recipients have not yet been formally categorized as such under these laws.
Since 2024, the NBA has been implementing an online self-exclusion program, which allows individuals to register using a mobile number, email address, and ID. Given that approximately 80% of gambling in Cyprus occurs online, this platform may provide a more straightforward method for identifying and excluding GMI beneficiaries than tracking anonymous gamblers at physical locations.
