Northern Cyprus Withdraws Online Casino Regulation After Financial Warnings

The online casino regulation published in the Turkish Republic of Northern Cyprus (TRNC) Official Gazette on December 2 was withdrawn following financial risk warnings from both the domestic public and Turkey. The Council of Ministers decided to cancel the controversial article, while President Tufan Erhürman stressed that the country would not be branded with a “casino-mafia” image, taking a firm stance against online gambling initiatives.

📜 Background: How the Online Casino Regulation Began

The regulation aimed to bring virtual gambling activities into a formal legal framework through licensing, effectively adding a digital gambling sector alongside the long-standing physical casino industry.

Immediately after its publication, it sparked significant debate regarding the banking system, financial oversight, and potential money-laundering risks. Previous warnings by MASAK (the Financial Crimes Investigation Board) concerning similar activities were recalled, and the decision-making process raised public suspicion.

The government attempted to ease criticism by claiming that the article had been “mistakenly carried over from an old circular.” However, the explanation was not considered convincing, and the rapidly growing backlash pushed the regulation to the center of national discussion.

🛑 Reasons for the Withdrawal

The primary reason for revoking the regulation was the assessment that online casino operations posed a high risk to the financial system. Warnings from Turkey indicated that uncontrolled money flows and the potential for money laundering could seriously harm the TRNC’s banking structure.

Following these concerns, the government reassessed the situation and halted the regulation. During this period of escalating public reaction, the decision was silently removed from the Official Gazette, causing the newly enacted regulation to lose its legal force within days.

Although the government’s explanation of a “technical error” was unconvincing to many, the revocation ultimately nullified the TRNC’s online casino framework. The speed of the process was seen as a sign of the seriousness of both financial and political risks.

🎙️ President Tufan Erhürman’s Statements

President Erhürman played a decisive role in the outcome, stating clearly that uncontrolled online gambling would cause significant harm to the country. He emphasized that the TRNC had long been associated with a controversial gambling system, and the addition of a hard-to-audit online casino sector would mean “branding the TRNC with a casino-mafia image.”

Erhürman highlighted the risk such activities pose to the financial system, underlining that economic security and state authority must be protected. He welcomed the regulation’s annulment but warned that he would not hesitate to use his constitutional powers if similar initiatives were brought forward in the future.

His firm remarks were widely interpreted as the clearest political signal, effectively closing the debate surrounding the TRNC’s online casino decision.

🔮 Future Expectations for Online Casinos in the TRNC

With the annulment of the regulation, discussions are expected to continue on whether a new legal model for online gambling will emerge. Experts say it remains to be seen whether online gambling will stay fully banned or return under a more comprehensive legal framework. Strengthening the existing Games of Chance Law to safeguard financial oversight, protect the banking system, and reduce money-laundering risks is among the key recommendations.

Political and legal actors emphasize that any future initiatives of this nature must be discussed transparently with the public. The coming period may bring new political and legal steps on whether the TRNC will pursue legalized online gambling or maintain a broad prohibition.