The bill proposes an increase in the contribution rate from betting profits to football clubs from 1.5% to 3%. Members of the Finance Committee requested significant changes or even the withdrawal of the bill during Monday’s session, which foresees an increase in the contribution rate from betting profits to football clubs from 1.5% to 3%.

Lucy Herodotou, Director of the Ministry of Finance, explained that the bill increases the contribution by 1.5%, with the condition that this increase will go toward the tax obligations of the football clubs.

However, the Commissioner of State Aid, Stella Michaelidou, expressed serious reservations about this bill, stating that it contains elements of state aid. She emphasized that there should be appropriate safeguards to ensure that the debts will indeed be paid off. After learning about the bill from reports, she sent a letter to the Ministry of Finance, asking for her concerns to be formally considered. She added that in December 2023, when they were sent a plan to settle the clubs’ debts, she responded that there might be elements of state aid, and safeguards were necessary.

She also requested a rational assessment of the clubs’ ability to repay their debts and to ensure that any settlement was not disproportionate. Additionally, she stressed that the message should not be sent that there is tolerance regarding tax debts.

The Cyprus Sports Organization (CSO) welcomed the increase in this amount, which will be paid to the clubs through the CSO, following information from the Cyprus Football Association (CFA).

A representative of the CFA stated to the Committee that with this new regulation, the clubs are now receiving what they deserve due to their contribution to betting.

Speaking to the Committee, DISY MP Onoufrios Koulas noted that it is paradoxical to increase a tax to pay off the clubs’ debts, as this sends the wrong message. He said that DISY supports an increase in contributions to sports but opposes irresponsibility. He added that only clubs that meet their obligations should receive contributions.

AKEL MP Aristos Damianou stated that the bill violates good governance principles and urged the government to withdraw it, calling it unacceptable. AKEL MP Christos Christofides described it as a "tailored, favor-driven bill" for very specific clubs that owe money.

ELAM MP Sotiris Ioannou noted that the bill starts from the wrong premise and that there should be support for clubs, not the coverage of tax obligations.

In statements after the Committee's session, its Chair, DIKO MP Christiana Erotokritou, said that they are taking very seriously the concerns and suggestions of the State Aid Commissioner. The bill, she said, needs further processing because the increase in contribution to cover outstanding tax obligations is not acceptable.

Green Party MP Stavros Papadouris expressed surprise that the bill contains state aid issues, given that they had previously been assured that no such issue would arise.