OPAP entered into a concession agreement for the provision of exclusive games of chance within the Republic of Cyprus.
This agreement is for 15 years, and will be effective as of today. This concession includes the provision, management and conduct of designated games.
OPAP has also been granted a license by the National Betting Authority of Cyprus (NBA), which is responsible for regulating gambling within the country. The license will be repaid in 15 annual installments, based upon the performance of OPAP Cyprus. OPAP Cyprus has paid its first installment of EUR4.2m ($4.5m/PS3.6m) and future payments are due every year on the 31st January.
The license also contains tax details. The tax is 22.5% on the gross gaming revenues (GGRs) from games of chance played in Cyprus.
OPAP is also required to pay a sum equal to 5,0% of the GGR from their games as a sponsorship for sporting, charitable and social activities.
OPAP has been operating in Cyprus since 1969. The current range of games includes Joker, Lotto Proto Kino Super 3, Extra 5 Propogoal and Propogoal. It also runs a retail network with more than 200 stores in the country.
OPAP also works in conjunction with other organisations throughout the country. Cyprus Sports Organisation (CSO) and Cyprus Olympic Committee are two of the organisations that OPAP works with.
Cyprus to benefit from “significant” benefits
Makis Keraynos – Cyprus’ Minister of Finance – welcomed the agreement and said it would ensure “significant revenue” for the national government.
Keraynos also mentioned how exclusivity will protect the players against gambling harm. OPAP is the only company that will be allowed to operate games of chance on Cyprus. All other companies are illegal.
Kamil Ziegler added that he was “particularly happy” to have signed a new concession of 15 years with the Republic of Cyprus.
As a company, we’ve been in Cyprus for over 55 years. Our customers have enjoyed engaging games, and we’ve supported common goals. We also implemented social initiatives that had a significant impact.
We will not change our path.
OPAP revenue up by 4.2% in Q1
The new license and concession come after OPAP had a very successful first quarter. The revenue for the first quarter of this year increased by 4.2%, to EUR 549.7 million.
OPAP didn’t mention Cyprus in its first quarter report. OPAP did, however, detail increased revenue in three of the five segments that make up its core business. Online casino revenues grew by 29.1%, to EUR12.9m. The revenue from video lotteries and lottery machines (VLTs) was up, while betting revenue and revenue for instants and passives declined.
Despite the increase in revenues, operating costs increased by 18.6%. The pre-tax profits were EUR155.7m. This is a 3.4% decrease year-over-year.
OPAP has paid EUR39.9m of income tax. This translates to a net profit for Q1 of EUR115.8m. That’s a 4.0% drop from EUR120.6m of 2023.
