Ukrainian President Volodymyr Zelensky has followed through on a 2019 campaign pledge to bring legal gaming to the country. Last week, he signed Bill-22885D, which fulfills his promise to expand regulated gaming in the country beyond the lottery.
The bill approved by the Verkhovna Rada overturns an 11-year ban on gaming.
According to SBC News, the Ukraine Gambling Law will form a regulated marketplace for land-based and online casinos, retail and mobile sports betting, slot machine halls, online poker, totalizer contracts and lotteries. Important details must still be finalized, such as a licensing framework and industry tax rates.
Parimatch has confirmed that it will bid for one of the new operating licenses. CEO Sergey Portnov said: “I would firstly like to congratulate President Zelensky for delivering on his pledge to legalize gambling in Ukraine. He has shown that he is a man of his word and we fully support his agenda to liberalize the local economy. Parimatch has long argued that the development of a fair and regulated betting industry will really benefit Ukraine.”
Taxes will likely be decided once the Rada returns from recess in September. In June, Marusyak filed a new tax bill, 2713-D, which would set a 5 percent GGR tax on sportsbooks, 10 percent on online gambling and lotteries and 12.5 percent on slot machines. Bill 2713, jointly submitted by Oleh Marusyak and Marian Zablotskyi, sets the tax rate for all gambling and lotteries at 25 percent of GGR, while Deputy Oleksandr Dubinsky put forward bill 2713-2 which includes a similar proposal.
Meanwhile, Bill 2713-1, from Dmytro Natalukha, proposes a 7.5 percent tax rate on bookmaking, 12.5 percent on online gambling and 22 percent on lotteries.
Bill 2713-3, proposed by Artem Dubnov, would not levy gambling taxes but derive funds collected through license fees and normal business and income taxes.
Parimatch’s Portnov added: “We are fully committed to conquering our home market by delivering a product that can entertain the people of Ukraine. We are also proud that we can now contribute to the country’s economy and help grow its technology industry.
“However, for us to deliver these benefits in the long-term we need a fairer tax system which is currently too punitive and uncompetitive compared to similar international markets. It is vital that this is addressed as soon as possible to ensure the enduring viability of the industry in Ukraine.”
Portnov said a fair tax system would be important in securing the viability of gambling in Ukraine, especially as the country’s tax system was already “too punitive.”
“We are fully committed to conquering our home market by delivering a product that can entertain the people of Ukraine,” Portnov said. “We are also proud that we can now contribute to the country’s economy and help grow its technology industry.
“However, for us to deliver these benefits in the long-term we need a fairer tax system which is currently too punitive and uncompetitive compared to similar international markets. It is vital that this is addressed as soon as possible to ensure the enduring viability of the industry in Ukraine.”
