2020 promises to be a watershed year in the casinos history in Ukraine. It is not a secret for anyone that until recently, a huge number of slot halls has been functioning in the country. Usually these establishments operated under the guise of lotteries. Thanks to loopholes in the laws, starting in 2012, the gambling establishments owners have the opportunity to acquire a permit for their activities. Such permission could be obtained by contacting one of the state-licensed lottery operators. In the overwhelming majority, such slot halls are adjacent to pawnshops, which often leads to disastrous consequences.
Back in early autumn 2019, Volodymyr Zelenskyy, who had recently become a president of Ukraine, instructed the Cabinet of Ministers and the Verkhovna Rada to develop and consider a bill on the gambling legalization. Volodymyr Zelenskyy is of the opinion that with the gambling business ban lifting in Ukraine, the tourism sector and the country’s economy as a whole will only benefit.
The legal casino activities prohibition was adopted back in 2009. Despite this, many gambling establishments continued their work. Thus, bringing the gambling business out of the shadows will contribute to the transfer of shadow industry revenues into taxes and state profits.
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Historical Decision
And so, in July 2020, the Verkhovna Rada adopted a law legalizing the gaming business. The innovations will affect all categories of the gambling industry: land-based and online casinos, bookmakers, lottery operators, and poker clubs.
The new law assumes that the cost of licensing will vary depending on the type of gaming activity and the territorial location of the industry’s establishments.
To effectively regulate the gambling market, a special commission will be created, as well as an online monitoring system. However, this system will be introduced no earlier than two years later. This will affect the licenses cost. Before the online system starts functioning, licensing of the gambling business will cost three times more.
Where Can You Play
Previously, there was talk that the casino could be located only in 5-star hotels. The adopted law also allows other locations. This may be the territory of a suburban complex, but on the condition that the total complex area is more than 10 thousand square meters. m., and there is a five-star hotel on its territory. It is also allowed to place casinos in dedicated gambling zones. Such zones will be located outside of settlements, or at least outside of residential areas.
Placement of slot halls is allowed in hotels with a category of at least three stars. The license provided covers 250 machines. Moreover, it is permissible to use slot machines no older than 2019. Another condition is the placement of halls at a distance of at least 500 meters from educational institutions.
Carrying out bookmaker activities is possible both on the Internet and through land-based points. However, the placement of such points is allowed only in hotels of at least 3-star class, and at racetracks. At the same time, it is prohibited to accept bets on virtual events – only on real ones.
Who Can Play
The minimum age for players has been according to the new law, it is 21 years. Identification is carried out by checking the passport data at the gambling establishment entrance. If the regulatory authorities detect people under 21 years of age in such establishments, penalties will be applied, up to and including license revocation. Using gaming equipment without certification or making modifications to its system will be punishable by fines. In addition, the possibility of organizing or participating in the game process for citizens of the occupying state is excluded.
It also provides for a temporary restriction from visiting gambling complexes for a player who, by their participation in gambling, causes significant damage to the material condition, or leads to a difficult financial situation for their family. The data on such players will be entered into a special register.
The International Professionals’ Opinion
One of the world famous gambling entertainment operators, the Michael Boettcher’s Storm International holding supports the initiative of the Ukrainian government and is ready to enter the country’s market. The company’s management has a positive attitude to the lifting of the ban on gambling and makes optimistic forecasts regarding the development of the gambling industry in Ukraine.
As world experience shows, the state licensing introduction of gambling activities has a positive effect on the country’s budget. By removing this business from the shadows, the state will be able to receive taxes. Moreover, it helps to attract foreign investors. Positive dynamics is also expected in related areas of the economy, for example, in the tourism sector.
The operating on a legal basis gambling entertainment sphere is, among other things, a large number of jobs. By the way, many Ukrainian citizens work in the units operated by Storm International in Yerevan, Tbilisi, and Minsk. Now they have the opportunity to continue their careers in their home country.
In addition to Storm International, Darren Keane, the company managing director said, other global gaming entertainment operators are expected to enter the Ukrainian market, for which the most important condition for their work is legality and transparency of legal aspects.