OPAP Cyprus: Concession Agreement and awarding of 15-year license

OPAP Cyprus Ltd signed today a Concession Agreement with the Republic of Cyprus, under which the company will exclusively conduct, provide, and manage designated games of chance in the Cypriot market for a period of 15 years.

The Concession Agreement aligns with longstanding goals of the Republic of Cyprus, as set through the Law on Designated Games of Chance, which was published in June 2018. These include safeguarding public interest, enhancing market supervision, tackling illegal gambling, and promoting responsible gaming. In this framework, the National Betting Authority (NBA) of Cyprus is now the regulatory body supervising OPAP Cyprus’ operations.

The concession is effective immediately, after the issuance of the relevant license by the NBA, which took place earlier today. Under the terms of the Concession Agreement, the consideration for the license will be paid in 15 annual installments, based on a specific mathematical formula, which will also reflect the annual performance of the games offered by OPAP Cyprus. The first installment of €4.2 million has been paid today. All other installments are payable on January 31 of every license year. 

Moreover, as provided by the Law on Designated Games of Chance and the Concession Agreement, the participation of the Republic of Cyprus in the GGR of OPAP Cyprus reaches 22.5%. Additionally, OPAP Cyprus will have to dispense an amount equal to 5% of its GGR for sponsorships of sporting, social and charitable activities within the Republic of Cyprus. The minimum annual proceeds for the Republic of Cyprus are set at €20 million.

On his part, Kamil Ziegler, Executive Chairman of OPAP and Chairman of OPAP Cyprus, said: “We are very pleased to have signed a new 15-year Concession Agreement with the Republic of Cyprus. As a group, we have been operating in Cyprus for 55 years now, offering popular games and appealing experiences to customers, supporting shared goals, and implementing impactful social initiatives. We remain committed to continuing on the same path.”

OPAP has been active in Cyprus since 1969. For several years, OPAP Cyprus is providing games established as top choices for Cypriot customers. These include TZOKER, LOTTO, PROTO, KINO, SUPER 3, EXTRA 5, PROPO, and PROPOGOAL. The “heart” of OPAP Cyprus’ business is its agencies’ network, which consists of over 200 stores and is one of the largest commercial networks in the country. Additionally, the company follows OPAP group’s comprehensive Responsible Gaming policies, holding a leading position in this field.

At the same time, OPAP Cyprus is a credible and responsible partner of the Cypriot society, delivering tangible value to its stakeholders. Characteristically, OPAP Cyprus has left its mark in the sensitive field of Health, through meaningful interventions. These range from donating modern mammography equipment to providing support in cancer treatment and awareness with Europa Donna, and from practically supporting the General National Health System versus the Covid-19 pandemic to standing beside leading health organizations, like the Cyprus Red Cross, Anti-cancer Association, PASYKAF, Karaiskakio Foundation, the “Americos Argyriou” Center for Preventive Pediatrics, and the Cyprus Institute of Neurology & Genetics, among others.

Besides, OPAP Cyprus is deeply associated with Cypriot sport, being a longstanding benefactor. With institutional partnerships with the Cyprus Sport Organization and the Cyprus Olympic Committee, as well as the vast majority of sport federations, the company stands by sport from the infrastructure level to the national championships, and even to the Cyprus Olympic Team, which will represent the national colors at the highest level globally.

In Culture, OPAP Cyprus actively cooperates with the Deputy Ministry of Culture and various cultural organizations, to preserve and promote cultural heritage, as well as to support cultural sector development. Among other things, OPAP Cyprus is the proud sponsor of the Cyprus Symphony Orchestra Foundation, folklore organizations, concerts, local and international festivals, theatrical performances etc.

Finally, in Education, the company has joined forces with the Ministry of Education, Sport, and Youth to benefit Cyprus’ youth – the country’s most valuable asset. In this area, OPAP Cyprus implemented impactful initiatives, including providing free meals to thousands of students in rural areas, when Cyprus faced the major economic crisis. Additionally, the company supports the creation and operation of music and sports schools, strengthens special schools, and supports innovative programs that aim to inspire young people, with a focus on the areas of science, culture, and sports.