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In the shadow of international isolation, Cyprus' occupied north is gambling on a high-stakes future: doubling its number of casinos to 64, according to a Financial Times article yesterday.
The breakaway region, recognized only by Turkey, has long depended on Ankara’s financial lifeline. But a collapsing Turkish lira and stubborn inflation have left the occupied north reeling, prompting its leadership to lift decades-old limits on casino licenses in June.
Critics warn the move risks cementing the enclave’s reputation as a haven for vice. “We are creating a monster we cannot control,” said economist Mertkan Hamit, who works with the World Bank. “Since Covid, new elements have entered the economy, mostly elements from the dark side.”
Already, casinos dominate an economy where traditional exports are stifled by international embargoes. For those who may not know, the World Poker Tour (WPT) makes a stop in the occupied north, pulling in thousands of Texas Hold ’em and Omaha pros. The sheer number of casinos and gaming options could make even the most stone-faced player crack a smile. On top of that, year-round guaranteed prize tournaments keep the action, and the money, flowing.
Moreover, services like tourism and education make up three-quarters of GDP, but both sectors are struggling. When Covid hit, GDP plunged more than 16%, the steepest drop in Europe. Inflation now hovers at 36%, gutting local businesses and reversing once-lucrative cross-border shopping from Greek Cypriots.
A fresh bill expected this month could deepen the unease: it would allow foreign currency deposits in return for a 3% interest payout. Economists say such a scheme could turn the occupied north into an enabler of money laundering.
For many Turkish Cypriots, the stakes go beyond economics. They fear that entrenching casinos and shadowy money will further dim hopes for resolving the island’s decades-old division, which began in 1974 when Turkey invaded after a Greece-backed coup.
“Unless we solve the Cyprus problem, we are only left with these kinds of activities,” said Kemal Baykalli of the EU’s One Stop Shop initiative. “We’re relying so much on Turkey’s investment, and that has political costs.”
*Source: Financial Times
