Content:

Parliament Supported the Gambling Legalization Bill No. 2285-D

23.01.2020

On January 16, 2020, the Verkhovna Rada adopted the Gaming Law in Ukraine. Bill No. 2285-D was approved in the first reading. Two hundred sixty deputies voted in favour of this law (mainly from the ruling party “Sluga Narodu”).

Legalization of Gambling in Ukraine

Legalisation of gambling in Ukraine by the Verkhovna Rada

The main task of the document is to legitimize the gambling business, which has been in the sidelines for more than 10 years in Ukraine. The government hopes to optimize relations in the “player — casino — state” chain, creating an effective management system for the gambling industry.

Another goal is to increase revenue in the country's budget. According to the Cabinet of Ministers, the gambling area will generate ₴4.0 billion income in 2020. Moreover, this figure will increase further.

Gambling in Ukraine will be presented in the following formats:

  • Opening of land-based and online casinos.
  • Betting will be available through fixed betting points and interactive websites.
  • It is planned to organize poker tournaments on the Internet and in the ground-based clubs.
  • Placement of slot machines.
  • Lottery draws.

Thus, the Gaming Law will legalize a whole range of gambling areas in Ukraine. The authorities hope for the intensive growth of this sector of the economy with a systematic increase in profits and the creation of new employment opportunities.

Gambling Control

Gambling business in Ukraine: regulation

Gambling in Ukraine will be closely monitored by the state. It is planned to form an authorized body of seven people (the chairman and six members of the commission). Each participant will be approved in the relevant committee of the government.

The functional responsibilities of the commission will include such points:

  1. Legalization of the gambling business in Ukraine by issuing appropriate licenses.
  2. Control of license agreements.
  3. Verification of compliance with laws, standards, and other regulatory documents by license holders.
  4. Creation and maintenance of public registries, which will contain information on the issued permits.
  5. Creation of an online monitoring system. Equipment from ground-based halls, as well as servers of online casinos, will be connected to a special online system that will help control the actions of operators. Representatives of the State Fiscal Service will have access to the platform (to verify the timeliness and completeness of tax payments).

The Licensing Process

In order to open a gambling business in Ukraine, it will be necessary to obtain a license. The conditions, terms, and cost of permits will vary depending on the chosen area of activities.

Online Casinos

Online casino business in Ukraine

To open an online casino in Ukraine, the following conditions must be met:

  • The businessman should obtain appropriate permission.
  • He or she must make a ₴3.4billion bank guarantee payment. A deposit issued at the same bank can become an alternative in this case.
  • Registration of the website and its operating should be carried out only in the “.ua” domain zone. The domain name must be approved by the regulatory authority.
  • Certified equipment purchase (servers, modems, access points).
  • Connection to the online monitoring system.

If the operator plans to buy a casino in Ukraine and use it for organizing poker tournaments on the Internet, then a separate permit must be obtained.

It is forbidden to provide any communication and advertising services using the already registered gambling business in Ukraine. Money earned by the user must be paid exclusively in the national currency (hryvnia), in non-cash form, using the integrated payment module.

The cost of a permit for a virtual casino is $2.4 million at the relevant exchange rate. The validity term is 1 year.

Ground-Based Casinos

Opening a casino in Ukraine is possible only in special gambling zones, which are limited to 5-star hotels with 100 (and more) hotel rooms. The area of the casino should be from 500 square meters (taking into account gaming halls, rooms for administration, office space for staff).

To buy a casino in Ukraine, the company must comply with the following requirements:

  1. A ₴3.4 billion financial guarantee.
  2. Fifty (or more) contracts signed with employees of the establishment.
  3. Five (or more) gaming tables and twenty (or more) slot machines within one casino.
  4. Certification of equipment installed in the hall.
  5. Connection to the online monitoring system of regulatory authorities.

Players can use not only money but also its equivalent substitutes (tokens, chips) within the gambling establishment. Financial transactions in the non-cash form are forbidden. The legislation implies making payments only through the cashier of a land-based casino.

The license is valid for 5 years. Then, the document must be reissued. The cost depends on the type of hotel in which the gambling room is located.

Types of hotels with gaming rooms

Number of rooms

License cost, $ million

Kyiv

Other cities

200+

11,3

The cost of a license is determined during the preparation of the document

150-200

22,6

150+

The cost of a license is determined during the preparation of the document

5,6

100-150

11,3

The prices are based on the minimum wage amount (UAH 4,723, according to January 1, 2020 data).

In addition to licensing of the casino, it will be necessary to obtain annual permissions to place gambling equipment in the hall:

  • a slot machine — $2.2 thousand;
  • a roulette table — $66.1 thousand;
  • a table for other card games — $33.1 thousand

How to Start a Gaming Project in Ukraine 

Rosloto is your reliable assistant in all issues related to the gambling business startups. We provide a wide range of consulting services, the formation of a package of documents, as well as legal support for entrepreneurs.

One of the most popular Rosloto solutions is the development of turnkey online casinos. Such a resource is legalized, has a colourful design, and a rich library of slots. A secure payment module and a good affiliate program are integrated into the system. The businessman is guaranteed to receive high income and rapid traffic growth.

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  • email: manager@rosloto.com
  • Skype: rosloto_connect
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