The document is yet to be signed into law by Ukrainian President Volodymyr Zelenskyy and will come into force on the next day after being published in the official media. The Ukrainian government has previously said that the legalization of the gambling industry, banned since 2009, would bring an additional US$400 million per year to the budget, accelerating GDP growth to 1%.
Casinos
The initial version of the law suggested to place a casino only in 5-star hotels. Now this list has been expanded and it also includes out-of-town complexes and territories inside special gaming zones.
Such special zones will be created by the Cabinet of Ministers outside populated areas or inside them, but outside residential areas or in “economically backward” areas. In Ukraine, it is planned to create no more than five such special zones.
Gaming machine halls can be placed in 3, 4 and 5-star hotels (the minimum number of rooms in Kyiv is at least 50, for other towns - 25). The license is given for 250 machines, in one hall there should be at least 50 of them.
Bookmakers
Bookmaker activity will be allowed both on the Internet and at ground points. However, such points can only be accommodated in 3, 4 and 5-star hotels and at the race tracks.
Bets can be placed solely on real events, there is a ban on virtual ones.
Conditions to open a casino
To open a casino in the mentioned zones, one needs to get a license for organizing and holding gambling in gambling establishments. For investors who are ready to implement a separate investment project or build a separate hotel complex, the document offers a discount.
If an investor is ready to invest a certain amount of money in a project that goes beyond the scope of a standard casino, the Cabinet of Ministers can provide individual conditions for the realization of such a project.
But if the investor is ready to build a hotel complex (5-star complex with a number of rooms of at least 200 rooms for Kyiv or 150 rooms - for other cities), then he automatically acquires the right to place a casino there.
In both situations, an investment license will be issued instead of a regular license. Payment for the issuance of an investment license is not provided, and its validity period will be 10 years.
Requirements for gamblers
The gambler’s age will increase from 18 to 21 years old, and the requirements for gamblers and their identification and strict financial sanctions for non-compliance with such requirements are established. Representatives of the state-occupant cannot be organizers and participants in gambling.
If a player, by participating in gambling, harms himself or his family by leading to a difficult financial situation, he/she may be restricted in visiting the gambling establishments for a period of six months to three years by a court decision.
The gambler may also be limited by the authorized body at the request of family members.
Allowed and prohibited activities
The document allows online poker. However, poker for money (not a tournament) will be possible only at the casino. Sports poker (poker tournament) is a sports game, so the procedure of holding the tournaments is determined by the relevant ministry.
In addition, video lottery terminals (VLT) and other visualization devices, that is, machines that allow to bet on the result of video games and work on the basis of a random number generator, are prohibited.
The law amends the Law of Ukraine “On Advertising,” introducing restrictions on the advertising of gambling. In particular, a ban is placed on outdoor advertising, except for signs, as well as restrictions on all other types of advertising.
Regulation body
The system of online-monitoring is imposed; it will allow to hold state control over the activity of the organizers of the gambling by data acquisition of the gambling equipment of the gambling organizers, which are connected to the unified system.
Moreover, the creation of the particular state body – the Commission on the settlement of gambling – is proposed. The composition: chairman and five members. It will hold licensing, monitoring and control over the activity of the market members.
The document says that the online monitoring system will start to work not right away but in 2.5 years. The price of the license for online casinos, bookmakers, gambling machines halls in the hotels will be thrice more until the implementation of the online monitoring system.
Forecast income for Ukraine
The authors of the current concept expect to gain from US$150 to US$ 200 million dollars from market participants annually (license fee and tax).
As for taxation, this bill does not cover this issue, it will be considered as part of a separate legislative initiative.
Source: GMB
