For more than 10 years, gambling had been banned in Ukraine, and in August 2020 it became officially allowed. The system of this market control is still far from being perfect because it needs time. At the moment, some active actions have been taken to make the gambling business as transparent and reliable as possible for players.
When adopting the document in parliament, the relevant committee assumed that the budget from the legalization of gambling would receive from UAH2.5 billion to UAH4 billion in the first year alone. At the same time, the operators are stipulated with rigorous requirements. The organization and running of gambling business are permitted if the following requirements are satisfied:
- licenses for this type of activity;
- certified equipment;
- connection to the state online monitoring system.
This requirement is relevant for both online and offline organizations.
The head of the Ukrainian Gambling Council, Anton Kuchukhidze, says that the legalization of gambling in Ukraine has become an important step for the country’s economy. Today, both the state and the legal gambling business have created a legal and practical framework to protect the life, health, and dignity of citizens who like to play games in online and offline casinos.
The expert shared the data of the Antimonopoly Committee of Ukraine, according to which in 2018 the turnover of the shadow gambling market was approximately UAH30 billion. At the same time, the opinion of experts indicates that the turnover was much bigger.
But nowadays, the market is skyrocketing. According to the Ukraine Gambling and Lottery Commission (UGLC) https://gc.gov.ua/, 13 licenses have already been issued to organize and run business of online gambling, 8 ones in casinos, 12 ones in slot machine halls, 3 licenses to organize and run online poker games, and 1 a license to organize and run betting business.
Bringing in from the cold
Although the gaming industry in Ukraine is legalized, a significant share of the business remains in the shadow. Experts say that the owners of such establishments are not interested in transparent conditions and effective regulation. In addition, they are against bringing in from the cold and being accountable to society and the players.
International political analyst, Anton Kuchukhidze, says that the underground gambling business still resembles street crime – it is much easier for such organizations to pay extra to individual officials than to negotiate with the state. In addition, underground casinos attract people with gambling addiction, so it is possible that black gamblers can own lists of gamers to seize their money and property
Officials will never resort to such measures. Compliance with laws, certified requirements, restrictions for human gambling addicts are the basis of the legal gambling business. The goal of the shadow players is to make money because they lack any social responsibility. Ukrainian laws reliably protect addicted gamblers, to the point that they are prohibited from visiting legal casinos at the request of their spouses or children.
Lawyers working in this area also note that the rules of the law that protect the players prevail over the permissive rules. This means that from a legislative point of view, there is no threat to public or state interests.
And although the Commission for the Regulation of Gambling and Lotteries is already dealing with issues of underground casinos, law enforcement agencies are actively fighting them, as usual.
Many argue that the body regulating gambling in Ukraine, the Ukraine Gambling and Lottery Commission, has its special forces, which at any time can detect an underground casino, confiscate equipment, and put everyone behind bars. But they do not have such powers.
But in the powers of the commission – to notify law enforcement agencies about the facts of detection of clandestine casinos, as well as to conduct educational work with the public.
All you need to know about the prointernet.in.ua project
In 2021, an educational and informational project https://www.prointernet.in.ua about the gambling business in Ukraine was launched. It provides information about fair and legal internet online casinos, evaluates bonus programs, and makes honest reviews. All materials on the portal are based on the analysis of player reviews.
Each review includes:
- characteristics of online casinos;
- organization reliability;
- profitability for players;
- assortment of games;
- description and benefits of bonus offers;
- loyalty programs;
- gameplay features;
- interface analysis;
- site design.
Particular attention is paid to licenses confirming the legality of the institution’s activities in Ukraine.
The prointernet.in.ua project has a YouTube channel PRO INTERNET CASINO, where the reviews internet casinos, bonuses, free spins, and other useful information for players is published.
Portal visitors can find out the answers to the following questions:
- what are the best slot machines?
- how to get and unlock deposit casino bonuses?
- what are the types of bonuses offers and their benefits?
- what are free spins, and what to use them for?
- all about the procedure for registering, depositing, and withdrawing money from a personal account.
The prointernet.in.ua project is an opportunity to enjoy the game and win.
Taxes – synergy between the market and the state
The bill 2713-d was amended concerning taxation, which caused a positive reaction among market participants. Previous regulations did not exclude the risk of shadowing part of operators’ profits. It was also a threat to those players who visited the offline casino or web resources of the licensed casinos.
The document, which was adopted by the Rada, eliminated many contradictions that embarrassed both Ukrainian and foreign organizations. According to this document, the GGR (gross gaming revenue, gross gaming income) rate for all types of activities will be equalized to 10%, and taxes will be levied on winnings that amount to more than UAH48 000. The triple license provision was also repealed. And for those who paid for this service, the parliament decided to count it as an annual payment for a permit.
The main task of the Ukraine Gambling and Lottery Commission is to create the most favorable conditions for the development of the gambling sector while ensuring that it has a positive effect on the state. In addition, cooperation with foreign operators must be transparent, which is impossible without clear tax conditions.
Competent regulation of the market, including in matters of taxes, is the key to Western investment. Kuchukhidze is sure that compared to a small Georgia that managed to attract significant foreign investment, Ukraine has bigger potential.
Of course, no legal organization refuses to pay taxes. At the same time, the authorities should be interested in foreign tourists who can be brought by Ukrainian investors. But this will be impossible if the tax issue is not settled, which is especially important for national business and Western investors
What are the principles of responsible gaming?
The principles are the fulfillment of obligations not only by the operator but above all by the player. Each player should understand that the game is not a way to make money, they should not do it all the time and immerse themselves in the virtual world. It is just one of the leisure activities.
Today, at the legal level, there are three provisions for responsible gambling
- player identification;
- mandatory check of the player;
- impossibility of bonus loss.
The following principles were also added here: informing employees of the organization of gambling, the principles of social advertising, external activities, the principle of not stimulating a player to lose, and the principles of preventing and combating gambling addiction.
The document under consideration by UGLC has 4 provisions that explain the essence of the key points
- what principles are needed for;
- principle of the document;
- description of principles;
- the remainder of the responsible player.
Experts believe that this is a serious step for Ukraine on the way to creating a system that can establish European standards for the protection of players.
Summarizing the above, we can conclude that all the reforms in the legislation in the field of gambling business make it more transparent and safer for the state.
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