by In Ukraine, a legislative framework is being prepared for the launch of the gambling market and the issuance of licenses to providers. The working group is finalizing project 2713-d from 06/19/2020, registered in the Verkhovna Rada. Based on it, specialists plan to prepare the ground for the full launch of online casinos across the country.
Such information came from the personal Telegram channel of Oleh Nemchinov — the Minister of the Cabinet. In the second half of 2020, meetings of the Commission on Gambling and Lotteries are actively held. A resolution by the Cabinet of Ministers is being prepared for licensing organizations and creating conditions for them to conduct economic activities.
At what stage is the consideration of the casino bill in Ukraine?
According to Ivan Rudyi, the procedural framework for the project’s start is already ready and implemented.
The first licenses will be issued to gaming clubs after the final adoption of the Cabinet’s resolution, where rules for conducting activities for each type of gambling are clearly outlined.
Analyzing successful gambling markets in other countries, leading establishments were taken as the basis for the bill. Service standards were evaluated, and rules were formulated for organizations wishing to obtain a license in Ukraine. A decision was made that gaming clubs would need to ensure player comfort following the example of Vulkan Casino on CasinoPlay and similar sites — such strict regulation of relations between the organization and the player is the only way to ensure transparency in the gambling business.
For consumer protection, an online monitoring project and the creation of a unified provider database have also been developed. Real-time jurisdiction control, gambling business monitoring, and player request processing, according to the working group in the Cabinet, will guarantee the creation of a transparent and legal market. This will also solve the issue of insufficient guarantees that cause major foreign providers to refuse operating in Ukraine.
What about taxes on casino winnings and conducting gambling business activities?
During the consideration of bill 2713-d, questions arose regarding potential grounds for laundering money obtained through criminal activity.
This was the reason for postponing gambling legalization until the end of the current year.
Experts demand amendments to the taxation provisions. In particular, debates revolve around tax holidays, which are intended to exempt the gambling business from paying taxes until January 2024.
Specialists also demanded the bill be supplemented with provisions for taxing winnings received by players. Following the working group’s meeting, a decision was made to revise the zero rate for online casinos. Forecasts suggest that the duration of the tax holidays will be reduced to at least one year.
According to bill 3899 from 07/17/2020, it was decided that funds received from the gambling business will be directed to finance important social projects in education, sports, medicine, science, and culture.
The project also envisions 100% budgeting from local gambling establishments to local government budgets. This will also help increase the budget for social programs in specific regions.
The provisions of the law do not specify which activities the received funds will be directed to.
When to expect the launch of online casinos in Ukraine?
The deputy head of the gambling regulator gave his forecast on this matter. According to his statement, the base for the full implementation of the gambling business will be ready by December 15, 2020. Thus, the first licensed online casinos in Ukraine may appear before the New Year holidays.
During this period, a positive vote by parliament members on the bill introducing amendments to tax rules following gambling legalization is expected.
Ivan Rudyi reports that 1 billion hryvnias from license issuance could flow into the country’s treasury by the end of the year. Revenue will be primarily obtained from large establishments, such as Vulkan Casino and Vulkan Casino Ukraine, as they already have a large audience among Ukrainian gambling enthusiasts. It is added that, to achieve these goals, it is vital to finally formulate transparent rules and regulatory bases for organizations wishing to enter the market.
