The Turkish Republic of Northern Cyprus’ (TRNC) casino industry has called for sweeping regulatory reforms, warning that restrictions preventing local citizens from entering casinos are harming the country’s economy and benefiting competing operators in South Cyprus.

Representatives of the Casino Operators Association said the long-standing prohibition on TRNC citizens accessing casinos is encouraging affluent residents to gamble across the border instead, resulting in lost revenue for the domestic tourism, hospitality and gaming sectors.

Association Secretary General Ayhan Sarıçiçek, Chairman Hasan Cihat Örek and board member Sertuğ Gülcan argued that the policy has failed to curb gambling activity and instead diverted spending to neighbouring jurisdictions.

The association said business leaders and high-net-worth individuals are regularly crossing into South Cyprus to visit casinos, while inflation and currency pressures are further accelerating consumer spending outside the TRNC.

To address the issue, the sector has proposed replacing the outright ban with a regulated access framework based on responsible gaming principles used in Europe and the US.

Suggested measures include maintaining the current minimum gambling age of 25, introducing an annual paid casino entry card, integrating casino access systems with tax authority databases and restricting entry for public officials and minimum wage earners.

The association said it is prepared to work with government authorities on implementing a responsible gaming policy supported by enhanced regulatory oversight.

Operators also criticised current enforcement practices, arguing that police raids carried out at casino hotels create a negative impression among international visitors. They called for inspections to be transferred from the police to a dedicated civilian regulator or specialist tourism police unit, saying visible law enforcement activity can undermine confidence among high-value guests.

The casino industry remains one of the largest contributors to the TRNC economy. According to tourism and social security data, the territory is home to 33 licensed casinos, with casino hotels accounting for around 18,000 of its 27,775 tourist beds.

The sector employs approximately 14,000 people directly, rising to around 25,000 when hotel staff are included, representing roughly one-fifth of registered employment in the TRNC.

Industry representatives also pointed to increasing competition from South Cyprus, where Melco’s integrated resort development continues to strengthen the island’s casino offering. They said regulatory reform is needed to preserve the competitiveness of the TRNC’s gaming and tourism industries and stem the ongoing outflow of customer spending.