written and last updated by
Sam Smith at
15 Jul 2020
Journalist, Editorial Department
On July 14, the Verkhovna Rada of Ukraine passed a law legalizing gambling in the country. During the discussions, over 3,500 amendments were introduced to the draft legislation. For the past 11 years, all forms of gambling, except for state lotteries, had been formally illegal in Ukraine. In practice, however, the gambling industry operated without regulation. Preliminary estimates suggest that bringing gambling out of the gray economy could generate between 2.5 to 4 billion hryvnias annually for the state treasury.
Casinos will be permitted in specific locations, with relaxed requirements for gaming halls and betting shops. These establishments can be located in three-star hotels with a minimum of 25 rooms, or 50 rooms in Kyiv. The minimum area for opening a gaming hall is set at 300 square meters.
Licenses for land-based casinos, gaming halls, and online casinos will be issued for a period of five years, with payments made in annual installments. The cost of a casino license is as follows:
- A license for a gaming hall will cost 1.15 million euros, with an additional annual fee of 916 euros for each gaming machine. A single license can cover up to 250 slots, but no more than 50 in one hall.
- An online casino license will require a payment of 1 million euros. Additionally, a separate license for online poker will cost 765,000 euros.
The regulation of the gambling industry will be overseen by the Commission for the Regulation of Gambling and Lotteries, with members appointed by the government. A State Online Monitoring System will be established to record all transactions in real-time, down to the second.
Only legal entities with experience in the gambling industry can act as organizers, and it is specified that the founder must be a resident of Ukraine. Organizers will need to provide a bank guarantee of 1.1 million euros to cover winnings.
Offering players free alcoholic beverages or beer as incentives for gambling is prohibited. Gambling establishments will not be allowed to accept bets on credit or issue loans, although players will be able to make deposits using credit cards.
Only individuals aged 21 and over will be permitted to gamble in casinos. Gamblers will have the option to self-exclude for periods ranging from six months to three years. The regulator can also prohibit an individual from gambling at the request of family members if the person has significant debts, spends beyond their monthly income, or fails to pay alimony.
It is worth noting that several significant changes were made to the draft law after receiving recommendations for its second reading. Notably, the required number of hotel rooms for Kyiv and major cities was reduced, and the auction system for obtaining licenses was eliminated, with fixed prices now established.
