Ukraine said last week it expects to make about $265,235,175 in gaming revenue this year. The Eastern European nation ended a ten-year ban on gaming last summer.
The member of parliament who chairs the committee on finance, taxes and customs policy, Danylo Hetmantsev, told Radio Svoboda, “The receipt of these funds is envisaged in the state budget of Ukraine for 2021. This is an income from fees for licenses to conduct activities related to the organization and conduct of gambling and licenses for the issuance and conduct of lotteries.”
Last year the Verkhovna Rada (parliament) approved a bill to allow for gaming in the country and it was later signed by President Volodymyr Zelensky.
The government plans to launch regulated gaming this year and the parliament is working on enabling legislation.
Andrey Astapov, an attorney who serves on the Expert Advisory Council of the Gambling and Lottery Regulation Commission, spoke to CasinoBeats recently about the potential for gaming in Ukraine. “Ukraine’s return to legalized gambling is a big event for many big industry players,” he said, adding, “According to some market estimations, the volume of the Ukrainian gambling industry in the shadows amounted to more than €5 billion.”
He called the potential for the market, “huge.” He added, “Though there are also many local operators interested in obtaining different gambling licenses, special attention is received from foreign investors and large international brands in the gambling industry.”
The length of time gaming was banned in Ukraine in part mandated it would take a long time to bring it as a legal activity.
“Developing the legal framework for the industry, which was prohibited and unregulated for many years, can be difficult for many reasons” said Astapov. “This process requires the in-depth analysis and consideration of all specifics of the industry, in general, as well as each gambling product.
Stakeholders were consulted, and opinions varied widely, he said. “And every such opinion shall be given fair consideration.”
He added, “Extensive public discussions started already at the early stages of the gambling law drafting. Initially, they led to the development of a few alternative gambling laws. And, later, to the many amendments introduced in the Verkhovna Rada.”
The parliament has simplified the licensing procedure compared to other countries. The goal, he said, “was and continues to be the development of legislation that is accountable, consistent and transparent.”
Those who wrote the gaming law drew inspiration from other countries whose regulatory framework has held up well, including Malta, the UK, Russia and Georgia, he said.
