A new casino law is generating controversy and friction in the government
Northern Cyprus has moved a step closer to a major expansion of its casino industry following sweeping reforms passed earlier this summer. The Assembly of the Republic approved a new law in early June that lifted long-standing restrictions on licensing and location, a decision the government argues is necessary to stimulate an economy weighed down by inflation and heavy reliance on Turkey.
The reform package eliminates caps on the number of casino licenses and scraps previous distance requirements from residential areas. One of the most controversial changes allows new casinos to be built just 100 meters from schools, a move that has sparked anger among opposition lawmakers and fueled public debate.
Estimates suggest the number of casinos could nearly double, climbing from the current 32 to around 60 in the coming years, with some projections reaching 100 if growth continues unchecked.
The law also softens penalties for local residents who enter casinos. Once considered a criminal offense, it will now be treated as an administrative violation carrying fines of up to €50. Critics warn that this change could normalize gambling among Turkish Cypriots and lead to wider social consequences.
Government officials, led by nationalist and conservative parties, have defended the legislation as a pragmatic step to attract tourists and generate tax revenue. With inflation at over 35% this summer and the Turkish lira under pressure, leaders see casino development as a way to bolster revenues from sectors already central to the economy, including tourism and higher education.
Opponents, however, argue the risks are too high. Lawmakers have raised concerns over gambling addiction, organized crime, and the possibility that Northern Cyprus could become a hub for money laundering and illicit activity. Some have even warned that the island might be labeled a “casino paradise,” inviting international scrutiny.
