**State Lottery Seeks Modernization Amid Declining Surplus**
The national lottery of Cyprus has reported a significant decrease in its surplus for the year 2025, dropping to €7.2 million from €8.8 million in 2024. This decline was confirmed by Angelos Efthymiou, the head of the lottery institute, in a statement to the Cyprus News Agency on Friday.
Efthymiou explained that the surpluses generated by the lottery are directed into the state’s permanent fund, which also includes unclaimed prize money. The recent downturn in surplus has raised concerns about the sustainability of the lottery's revenue, prompting calls for modernization to enhance its operations and competitiveness.
To address these challenges, the accountant-general has initiated a tender for modernization efforts, which is currently in progress. An announcement from the finance ministry in early August detailed that the estimated value of this tender is €1.23 million, excluding VAT. This amount will fund a six-year advisory contract, which is not limited to a single consultant's salary but will support a team of legal and financial specialists.
The modernization project will unfold in three phases: an initial six-month assessment, an eighteen-month to two-year implementation period, and three years of technical support following the launch of the new operating model. The budget also allocates €200,000 for additional assistance beyond the core scope of the project and €30,000 for potential extensions of support.
Bidders for the contract must meet specific criteria, including an annual turnover of at least €2 million and prior experience advising state lotteries abroad with contracts worth at least €500,000. Additionally, commercial and legal experts involved in the project are required to have a minimum of ten years of relevant experience.
The final operating model for the lottery has not yet been determined, as the cabinet will evaluate the proposals submitted by the selected contractor before any changes are implemented.
Despite the drop in surplus, Efthymiou reported that revenue for the current year is on track to match last year's figures, with approximately €12 million generated by the end of September. The lottery's revenue has fluctuated in recent years, with €21 million reported in 2024 and €19 million in 2023. Notably, scratch cards have been the primary source of income, accounting for 98 percent of total revenue.
Prize payouts have also been substantial, totaling around €10 million in 2024 and €9 million in 2023, which represents roughly half of the overall revenue. Efthymiou highlighted that the payout rate for lottery tickets is exceedingly high, exceeding 99 percent, and confirmed that all significant prizes have been claimed.
The state lottery, established in 1958, has faced increasing competition from Opap, a subsidiary of the multinational gaming company Allwyn. This competition has contributed to the notable decline in sales, prompting the need for a strategic overhaul to ensure the lottery's viability in the evolving gaming landscape.
As the national lottery moves forward with its modernization plans, stakeholders will be closely watching the outcomes of the tender process and the subsequent implementation of new strategies aimed at revitalizing its operations and enhancing revenue generation.