Legislation that would bring land-based casinos, online gambling, sports betting and lotteries to the Ukraine has passed its first reading in the country’s parliament, the Verkhovna Rada.
Bill 2285-D, which would permit regulated gambling in five-star hotels and online, passed by a vote of 260 in favor in the 450-member body. Only a simple majority was needed to advance the statute.
According to CDC Gaming Reports, for hotels with 200 to 250 rooms, bidding for a casino permit would start at UAH41.7 million (US$1.72 million). For resorts with 251 or more rooms, the license minimum would rise to nearly $2.6 million. Licenses for online operations would start at UAH6.7 million (US$280,000).
“The adoption of Bill 2285-D in its first reading is the first step towards creating a fair and transparent gambling market, which will in turn attract investment and introduce new technology to the country,” Pari-Match, an online gaming bookmaker and casino operator, said in a statement.
“Once legalized, the market will create thousands of jobs, contribute to both state and local budgets, lead to an increase in tourism, and will help to counter corruption in professional sports. Also, the increased tax revenues generated will provide much-needed funds to support culture, medicine, and sports in Ukraine,” the bookmaker added.
The bill would create as many as 20 hotel-based casinos and 10 licensed iGaming platforms. The minimum age to gamble would be 21, and a government agency would be established to regulate the casinos.
Each casino must include at least 500 square meters (5,382 square feet) of gaming space. No more than 40,000 slot machines could be approved across the 20 land-based venues.
The bill must pass two additional readings before heading to President Volodymyr Zelensky for his signature. IMF Managing Director Kristalina Georgieva said last month that she commends Zelensky “for the impressive progress that he and his government have made in the past few months in advancing reforms and continuing with sound economic policies.”
With licensing and associated taxes, the Ukraine government estimates the gambling bill could generate more than $200 million annually for the country. Revenues are much-needed in the country, which is emerging from a long recessionary period. According to the Kyiv Post, last year saw the weakest global growth of gross domestic product since the recession in 2009. However, the situation began to improve by the end of the year, and experts forecast that growth will continue in 2020.
Prime Minister Oleksiy Honcharuk has set an ambitious goal: 40 percent economic growth over the next five years (approximately 7 percent per year). Zelensky is equally optimistic and says the economy is on the verge of a breakthrough.
