Plans to Double Number of Casinos in Northern Cyprus Could Hinder Island’s Reunification

The government of Northern Cyprus — recognized only by Turkey and by no other state — plans to double the number of casinos operating in the territory under its control, from 32 to 64, according to the Financial Times.

Turkish Cypriots fear that the rapid expansion of the gambling sector further diminishes the island’s already slim chances of reunification under a single state.

The self-declared Turkish Republic of Northern Cyprus covers 3,355 square kilometers (for comparison, Greater London covers 1,572 sq. km). Its dense network of casinos, soon to be doubled, reinforces perceptions of the territory as a hub for shadow gambling operations, with Northern Cyprus ignoring international anti-money-laundering directives.

“We have openly embedded a criminal economy into our state system,” said Northern Cyprus economist Mertkan Hamit.

Local experts warn that further casino expansion will make it even harder to resolve the “Cyprus problem” — the frozen conflict that has divided the Mediterranean island since Turkey’s 1974 invasion into a northern (unrecognized) and southern (internationally recognized) part. Analysts argue that deepening reliance on the shadow economy will hinder any potential reunification with the Republic of Cyprus, an EU member state that enforces strict financial oversight.

Authorities in Northern Cyprus justify the removal of licensing limits as a move to attract more tourists from Turkey, where casinos are banned, hoping it will boost public revenues.

Still, Hamit cautions that the policy will only make the north’s economy more dependent on gambling: “We are creating a monster [the casino industry] that we cannot control.”

In the Republic of Cyprus, gambling is also legal but tightly regulated and supervised by the state. As Gambling Park notes, tax revenues from Cypriot casinos have reached nearly €80 million since 2018.