The Cypriot government licenses online lotteries, betting exchanges, casino gaming, and sports betting. In 2007, the Cypriot government began preparing a bill that would impose a stricter set of rules for the licensing of online gaming in their country. A previous bill had been submitted to Parliament in 2006, but it was soundly rejected by the parties involved.

The goal of the bill is to prevent underage children from participating in online gaming and to insure that the state does not suffer any losses in tax revenue.

The exact nature of the rules that the government seeks to implement has not been determined.