Cyprus is considering new measures that could prevent recipients of the country’s Guaranteed Minimum Income from using welfare funds for gambling, as lawmakers examine options covering casinos, betting shops and online platforms.
The issue was discussed by the House Audit Committee, with representatives from the Welfare Benefits Administration Service, the Gaming and Casino Supervision Commission, the National Betting Authority and the Office of the Data Protection Commissioner taking part.
Guaranteed Minimum Income, known locally as EEE, provides financial support to people whose income and other resources are insufficient to cover basic needs. Cyprus requires applicants to provide financial information, including bank account statements, as part of the eligibility process.
Regulators have become concerned about a possible connection between welfare payment dates and increased gambling activity. Gaming and Casino Supervision Commission executive director Harris Tsangarides said the regulator has observed higher casino activity around the middle of the month, when GMI payments are typically distributed, since 2023. However, the available data does not establish that welfare recipients are responsible for those increases.
One option under consideration would allow authorities to cross-check a person’s identification details against GMI records when issuing casino membership cards. The proposed system could return a simple confirmation of whether an individual is receiving the benefit rather than transferring broader personal information.
Casino membership cards are not yet universally required across Cyprus, but authorities intend to make them mandatory at all casinos from around mid-2027.
Officials are also examining whether more detailed banking information could be accessed when investigating possible misuse of welfare payments. The Welfare Benefits Administration Service currently has only limited access to account information, which can highlight unusual balances but cannot necessarily establish that money has been spent on gambling.
Data Protection Commissioner Maria Christofidou said her office had revisited a 2022 legal assessment and determined that a legal basis may exist for obtaining more detailed banking information. Lawmakers nevertheless raised concerns over privacy and the potential stigma attached to identifying welfare recipients.
Another proposal involves a dedicated payment card for GMI recipients. One version discussed would operate like a normal bank card but could restrict gambling transactions and potentially cash withdrawals, allowing welfare money to be directed toward essential expenses.
Online gambling may prove easier to regulate. The National Betting Authority said roughly eight in ten gamblers in Cyprus play online, where customers can be identified more readily than at physical betting shops. The regulator already operates a digital self-exclusion system that could potentially be adapted to block GMI beneficiaries.
No final measure has yet been approved, and authorities must still determine how any restrictions could be implemented without breaching privacy rules or unfairly targeting welfare recipients.