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The Turkish Republic of Northern Cyprus has liberalized casino licensing, paving the way for the number of gambling establishments to double from 32 to 64, as the internationally isolated territory seeks new revenue streams amid economic turmoil.
The move, formalized through legislation passed in June, eliminates sector restrictions in a region recognized only by Türkiye and subject to international embargos. The decision aims to attract casinos banned in mainland Türkiye to the breakaway territory.
However, the prospect of 64 casinos operating in the small Mediterranean enclave has sparked concerns about the region becoming synonymous with gambling and criminal economic activity.
Northern Cyprus faces severe economic challenges, with its economy heavily dependent on tourism and higher education revenues that have failed to recover since the coronavirus pandemic. According to World Bank data, these two sectors account for more than 75 percent of GDP.
The economy contracted 16.2 percent in 2020 during the pandemic, while annual inflation reached 36 percent by June 2024, compounded by the Turkish lira's depreciation.
As long as we don't solve the Cyprus problem, we only have these kinds of activities left," said Kemal Baykalli, who works with European Union initiatives to promote trade in the UN-administered buffer zone.
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