The government of Ukraine has released the full text of the bill that aims to legalize various forms of gambling by the end of the year.
The bill contains information about the number of gambling licenses that will be issued by Ukrainian authorities and outlines the requirements that license applicants will need to fulfill in order to be eligible to be granted permits to conduct gambling activities on the territory of the country.
Ukraine criminalized gambling in 2009 after a horrific fire that raced through a gambling hall in Dnipropetrovsk killed nine people. Following the incident, the country enforced the On Prohibition of Gambling Business in Ukraine law that shut down all casinos and gambling halls.
While most forms of gambling were officially banned, Ukrainians have fueled a thriving black market that includes unauthorized online gaming and betting operations and illegal brick-and-mortar establishments.
Ukraine’s newly elected President Volodymyr Zelensky, fresh off his victory this past spring, tasked his administration with crafting a bill that would legalize gambling in a bid to clamp down on illicit operations taking place on the territory of the country.
The measure was presented to and approved by the Cabinet of Ministers in early October. It was then submitted to Ukraine’s unicameral parliament, the Verkhovna Rada. President Zelensky told lawmakers that he would expect the piece of legislation to be passed and enforced by December 1, 2019.
The Gambling Bill’s Provisions
Ukrainian lawmakers initially said that the new gambling bill would authorize casino gambling on the territory of hotels. However, the recently published text of the legislation shows that it also calls for the legalization of online casino gaming, online sports betting, online poker, and retail sports betting.
If the bill gets the necessary support in the Verkhovna Rada, Ukraine will issue 10 online gaming, 10 online betting, and five online poker licenses. In addition, authorities will grant 80 retail betting licenses. Each of these 80 licenses would allow its holder to open up to 10 wagering shops around the country.
As for casino gambling, it would be exclusively allowed at five-star hotels. There will be 20 casino licenses up for grabs. These will be available to five-star hotels with at least 200 rooms if those are located in the capital Kiev, and with at least 150 if they are located elsewhere in the country.
Land-based casino license fees for venues located at Kiev hotels will be determined by auction and will start at UAH37 million (approx. $1.5 million) per year. Fees for online gambling licenses as well as licenses for the operation of casinos located outside the capital will, too, be determined by auction starting at UAH25 million (approx. $1 million) annually.
The bill also provides for the establishment of a seven-member Commission for the Development and Regulation of Gambling. The regulator will have to draft licensing conditions for conducting gambling activities in Ukraine. Those must first be approved by the Cabinet of Ministers before taking effect.
Ukraine’s Finance Minister, Oksana Markarova, said last month that Ukraine could receive between UAH5-9 billion (approx. $200-$300 million) in taxes from regulated gambling.
Source: Ukraine releases gambling reform bill text, iGaming Business
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