On August 12, 2020, the law “On state regulation of activities for the organization and conduct of gambling” No. 768-IX of July 14, 2020 was published. At the same time, the law came into force on 13 August.

Due to the fact that for a long time Ukraine with varying success struggled with the shadow market of gambling and only state lotteries and sports poker were officially working, at this stage representatives of different strata of the Ukrainian population did not agree on whether to legalize or ban.

Having analyzed world practice and the Ukrainian draft law, experts are inclined to believe that at this stage, when Ukraine needs foreign investment, infrastructure development and replenishment of the state budget, the law is still a great opportunity.

What The Casino Law Provides

The main activities in the field of gambling provided by the law are casinos (including online), bookmaker bets, slot machine halls and online poker.

It is impossible to conduct the activities of a gambling organizer without obtaining an appropriate license. Obtaining a gambling organizer’s license is mandatory, while obtaining other licenses depends on the chosen type of activity.

Assessing international experience, we note that Ukraine has set a high cost of licenses for organizers, so the market is unlikely to be oversaturated.

The following basic requirements apply to all organizers of gambling:

• a Ukrainian legal entity whose main activity is the organization and conduct of gambling;
• the minimum amount of the authorized capital – UAH 30 million (this minimum must be formed in cash). The authorized capital cannot be formed at the expense of budgetary funds (an exception is the organizer of the betting activity, which owns the hippodrome);
• for officials, owners of substantial participation and ultimate beneficiaries of the organizer, the requirement for an impeccable business reputation has been established;
• the founders of the organizer cannot be local government bodies or legal entities from the Register of Non-Profit Institutions and Organizations (with the exception of the organizer of the betting activity, which owns the racetrack).

In general, there are many requirements in the law: it contains quantitative and qualitative requirements for equipment; requirements for information that must be posted on the organizer’s website; requirements for the place of gambling, etc.

For example, casinos can be accommodated in rooms of at least 500 m2 in 5-star hotels with 150 rooms or more (for Kyiv) and in 4/5-star hotels with 100 or more rooms (for other settlements).

The exception is cases of activity on the basis of a special investment license.

The requirements for players / visitors and their identification (verification) are also uniform: admission to the game and to gaming establishments is allowed only for persons over 21 years old.

Different identification mechanisms have been established for offline and online gambling. For the first offline identification, a person must provide a document confirming his identity and age; then you can use the ID issued by the organizer.

With regard to online gambling, verification is carried out using an electronic signature or a SIM card with support for Mobile ID / Bank ID or other verification methods. Acceptance of a bet on the Internet is possible only after determining the age of the player.

In addition to differentiated requirements for organizers of various gambling types, the law contains the basis of state control – it is expected to create a Commission for the Regulation of Gambling and Lotteries as an authorized body in the field of licensing and monitoring the activities of organizers of gambling.

Among the goals and principles of state policy, enshrined by law, are listed ensuring the principle of responsible gambling and combating gambling addiction (gambling addiction).

Among other things, the authorized body provides for the maintenance of a register of persons for whom access to gambling establishments and / or participation in gambling is restricted.

The Ukrainian gambling law is not intended to turn Ukraine into a new Las Vegas. The state has finally come to regulate activities that have been shady for more than ten years.

It is expected that gambling will be held under strict state supervision (a large number of by-laws are being developed that will help to establish the launched mechanism) and measures will be taken to ensure the principles of transparency and accountability of the game, as well as to combat gambling addiction.

The course chosen by Ukraine makes it investment-attractive for foreign investors, which can promise the strengthening and subsequent stability of the economic sector of Ukraine, the development of infrastructure and the creation of new jobs for the population of the state.

Foreign gambling companies such as Michael Boettcher’s Shangri La by Storm International praise the adoption of the casino law. Now it will attract serious companies to Ukraine, ready to work in the legal field and pay taxes.

The Managing Director of Storm International, Darren Keane, also said that the legislative changes will be positive for the citizens of Ukraine. So, thousands of people will get high-paying jobs. And people who have gone abroad for a decent job will be able to return back. For example, many Ukrainian citizens work in foreign units of the Shangri La, Darren Keane added, will gladly return home and work for the benefit of their native country.

Economic experts assess the legalization of the gambling business positively. In addition to taxes, this branch of business will help the development of the hotel, tourism and recreational sectors.