On January 16, 2020, the Verkhovna Rada of Ukraine passed the Act №2285-d in the first reading. The gaming industry got the green light, and entrepreneurs got the right to launch interesting and profitable gambling projects. Experts are hoping for an influx of foreign investors, and the government is hoping for an increase in treasury revenues (approximately 4 billion hryvnias a year).
Among the legalised activities, there are casinos ― both land-based and online ones.
Rosloto will help you to open your own gambling service quickly and with cost reduction.
It is possible to open a casino in special gambling zones. They are limited to the territory of five-star hotels, while the capacity of the hotel is also important (for the capital of the country ― from 150 rooms, for other cities ― from 100).
The cost of a permit varies depending on the totality of the above-mentioned parameters.
The cost of a license, in minimum wages
A hotel in Kyiv for 200 rooms
A hotel in another city for 150 rooms
A casino should occupy at least 500 square metres, including both gambling zones and staff rooms. It is important for a gambling establishment to have a separate entrance/exit and audio and video surveillance in the halls.
The bill provides a separate permit for those investors who are planning to build a hotel with 5 stars and open a casino in it. A new edifice must be designed for at least 200 rooms.
A casino license in Ukraine is issued for a period of 5 years.
Apart from the gambling license, in Ukraine, there some secondary permits that should be obtained as well:
- a permit for the placement of slot machines ― 6 minimum wages for each piece of equipment;
- a license for the installation of one roulette table ― 175 minimum wages;
- a permit for the arrangement of a gaming table without a roulette ― 90 minimum wages.
All equipment must be certified and connected to governmental online monitoring. This system was developed by the state in order to control the work of gambling establishments in real-time. Representatives of the tax service will also have access to casinos to check if taxes are paid timely.
All companies operating in the gambling industry must pay VAT at the rate of 18%. In the near future, the Verkhovna Rada promises to adopt amendments on preferential taxation of 10% but so far, the project has been “stuck” in the relevant committees.
Moreover, the income tax in the amount of 18% should be paid by those users who have won good prizes. Such a tax rate is provided for the country’s residents. For non-residents, the percentage is higher ― 30%.
The gambling license in Ukraine in the online segment is issued for 5 years. Its cost is fixed ― 6 500 minimum wages. Companies may also receive additional permits for conducting poker tournaments on the Web. This document will cost 5 000 minimum wages and will be valid for 5 years.
To buy a license for an online casino in Ukraine, you must fulfil several conditions:
- Register the gaming site and applications on different operating systems in the .ua domain zone.
- Pass certification of servers and connect them to online monitoring.
- Integrate a payment module into your virtual resource. All payments are made only in the national currency ― hryvnias (in a non-cash form).
- Provide verification of all users of the resource. A scanned copy of a passport, an electronic digital signature, and MobileID or BankID technologies can be used. In the future, operators may request additional information on players but he can never disclose it to anyone else: it will be a serious violation.
Just like in the case of land-based gambling establishments, a casino license in Ukraine is available only to legal entities, the authorised capital of which is at least 30 million hryvnias. A foreign company can also open a branch or representative office in the country and apply for the permit. The exception is residents of the Russian Federation.
The conditions and tax rates remain the same as for the offline segment.
The information on all licensees will be stored in public registries. A special supervisory body ― the Gambling Commission ― will maintain these registries and timely add new gambling market participants.
The duties of the commission also include the initial inspection of packages of documents received from the applicants. After the inspection is passed, companies will be able to participate in the electronic bidding on the ProZorro website where permits will be drawn. The service will take 10% of the amount of transaction.
The Verkhovna Rada has provided for administrative and criminal liability for several violations related to the conduct of gambling business:
Organization of gambling activities without obtaining an official license
For gambling halls
170 thousand hryvnias
For land-based and online casinos
680 thousand hryvnias
For a bookmaker’s office (a land-based betting shop or a special website)
755,7 thousand hryvnias
Repeated violation (regardless of the type of activity)
Imprisonment for 6–8 years with the confiscation of gambling equipment, premises, and other assets of an entrepreneur
Mishandling of technical devices (the absence of licenses and certificates, introduction of changes into the operation of machines without discussing it with the manufacturer, refusal to connect to the online monitoring system)
4,72 million hryvnias
Non-compliance with the age limit
For land-based and online casinos, gambling halls, and betting shops (allowing people under the age of 21 to gamble)
2,36 million hryvnias
For lottery websites (acceptance of bets from minors)
944,6 million hryvnias
Breach of the legislation that is related to advertising of the gambling business
1,42 million hryvnias
The decision on the imposition of administrative and criminal sanctions is made by the Gambling Commission.
A permit can be revoked for several reasons:
- operation of online casinos and land-based equipment without the connection to the online monitoring system (in case of the 90 days delay from the date of the acquisition of a license);
- untimely payment of the cost of the permit or tax deductions (the delay of 2 months or more);
- refusal of a business entity to pay fines imposed by the regulator based on the results of inspections;
- the application for revocation filed by the licensee.
The procedure and rules for the advertising of the gambling business are determined by the Advertising Law № 270/96-ВР.
The document prohibits:
- sponsorship of other people's gambling establishments, events, and companies related to gambling activities (operators and bookmakers can only promote their products and services);
- placement of advertising banners and billboards with an area of more than 3 square meters, as well as the use of words “casino”, “bets”, etc.;
- marketing via print media, television, and radio broadcasts;
- advertising of gambling entertainment from 7 am to 9 pm and in public transport at any time of the day;
- employment of underage models for the creation of promotional materials;
- advertising during sports or entertainment events if their target audience is people under the age of 21.
Casino licensing in Ukraine includes a thorough working out of all aspects related to the fight against ludomania. Users can place themselves on the self-restriction register for a period of from 6 months to 3 years. The option will also be available to their family members but they will need a court decision to do that.
Operators should not allow people under 21 years old to gamble. It is also prohibited to advertise casinos as part of sports and cultural events or on some goods if their target audience is minors, financially disadvantaged citizens, and other vulnerable categories of the population.
The name of the gambling establishment should not contain the word “casino”.
The Rosloto company provides a wide range of services related to casino licensing in Ukraine. One of the best offers in our assortment is a ready-made online casino with a modern design and reliable software. A multifunctional payment module has been introduced into the system, and a huge number of generous slots will be a pleasant addition to any casino.
Such a resource will help you to earn good money and make your brand recognisable and competitive.
For more detailed information on current offers, please contact our managers: