Operator News
Ukraine – Ukraine President signs in bill to legalise new gambling industry
By Phil - 11 August 2020
The Bill No. 2285-d to legalise the gambling industry in Ukraine has now been signed by President Volodymyr Zelenskyi.
The creation of a legal gambling market is expected to generate around UAH5bn in annual budget revenues, as well as act as an incentive for the growth of related business areas and the creation of 1,000s of new jobs.
Despite the presidential signature, the legislation doesn’t yet offer clarification that operators need to consider for licensing costs and industry taxes. This is expected in September.
The government has committed though to establishing eight forms of gambling; land-based casinos, online casinos, retail sports betting, online sports betting, slot halls, online poker, totalizer contracts and lotteries.
The new market is expected to be somewhere in the region of 40,000 slot machines. Casinos licences are expected to be limited to hotels in the capital of Kiev will cost UAH121.6m (€4m) whilst outside the capital they will cost UAH70.8m. Hotels in Kiev would need to have at least 150 rooms, whilst for other cities this will be at least 100 rooms. Out-of-town complexes, with a total area of at least 10,000 square meters, consisting of two or more buildings with a five-star hotel, and territories inside special gaming zones will also be allowed to host casinos. These zones, of which there will be no more than five, will be developed by the Cabinet of Ministers outside of residential areas.
Slot-only operations will be allowed in 3-star hotels and above with between 50 and 250 machines allowed.
Bookmakers’ licence fees are expected to cost UAH70.8m while online gambling licences could cost UAH30.7m ($1.1m). Russian-owned entities will be kept out of the market with the law stipulating that all operators and slot machine suppliers ‘must not be controlled by residents of an occupying state and/or the aggressor state in relation to Ukraine.’
Ukraine banned most types of gambling in 2009. The government is looking to generate UAH4.5bn (US$166m) from licensing and taxing various gambling businesses this year.
Ukraine entity Parimatch has already said it wants to be involved in the new operating landscape.
Sergey Portnov, CEO of Parimatch said: “I would firstly like to congratulate President Zelenskyi for delivering on his pledge to legalise gambling in Ukraine. He has shown that he is a man of his word and we fully support his agenda to liberalize the local economy. Parimatch has long argued that the development of a fair and regulated betting industry will really benefit Ukraine.”
Mr. Portnov added: “We are fully committed to conquering our home market by delivering a product that can entertain the people of Ukraine. We are also proud that we can now contribute to the country’s economy and help grow its technology industry.
“However, for us to deliver these benefits in the long-term we need a fairer tax system which is currently too punitive and uncompetitive compared to similar international markets. It is vital that this is addressed as soon as possible to ensure the enduring viability of the industry in Ukraine.”
