Ukraine it lies in eastern Europe. It has Belarus on its northern border, Russia to the northeast, Poland Slovakia and Hungary are to its west while Romania Moldova lie at the south. This article will be a comprehensive analysis of Ukraine’s gambling laws, the history of these regulations, the regulatory bodies involved, licensing fees, taxes and the difference between prohibited and permitted bets. Moreover, we will also share the present condition of betting sites in Ukraine and the status of sports betting in Ukraine.
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Evolution of Gambling Legislation in Ukraine
Early History (1991-2009)
- 1991: Ukraine gained its independence in 1991. Ever since the day of its establishment, gambling was never illegal.
- 1991-2009: This period is usually referred to as the “golden age of gambling” in Ukraine, when there were not many regulations, corruption was widespread and organized crime was involved.
The 2009 Ban
- May 15, 2009: A fire in a gambling hall in Dnipro was the cause of social demands for a ban on gambling. The Ukrainian parliament reacted to the law “On Prohibition of Gambling Business in Ukraine” by passing it which banned all gambling activities.
- June 23, 2009: President Viktor Yushchenko put the signature on this law.
- June 25, 2009: The law was in effect.
- January 6, 2010: The Cabinet of Ministers eliminated gambling from the list of economic activities that can be licensed.
Amendments and Loopholes (2010-2019)
- 2011: The Gambling Prohibition Law was modified to encompass online casinos, thus making them illegal irrespective of the server or company location.
Legalization and Regulation (2020-Present)
- 2020: The online casinos were once again made legal under the Law No. The Act 768-IX that managed both the offline and online casinos is so far the first of its kind in Ukraine.
- February 2021: The first gambling licenses were given to Spacex LLC (Cosmolot brand), and then, Parimatch and others followed. The price of a five-year license is ₴9 million, but some people pay up to ₴23 million.
Recent Developments
- April 2024: The new rules were the result of worries over gambling addiction among soldiers. President Volodymyr Zelensky has put a ban on the military to play online gambling during martial law.
Gambling Law and Regulation in Ukraine – 5 Things to Know
Regulatory and Licensing of Betting Sites in Ukraine
Ukrainian Gambling Council
The Ukrainian Gambling Council (Всеукраїнська Рада Гемблінгу) issues, controls and manages the online casino licenses. All the organizations that want to start an online gambling business in Ukraine must get in touch with this regulator.
License Types and Fees
- Brick-and-Mortar Casinos: Legally and a five-year license that is worth ₴9 million are needed.
- Online Casinos: Moreover, it has been legal since 2020 under Law No. 768-IX. The price of the license for five years is different but it starts at ₴9 million.
Gambling Taxes
In the first two months of 2024, Ukraine’s gambling business paid Hr 2. 2 billion ($56 million) in taxes, and Hr 10. 4 billion ($267 million) in 2023 will be the amount of money that the company is going to earn. The Chairman of the parliamentary Finance Committee, Danylo Hetmantsev, who has given these figures.
Permitted and Prohibited Bets
Permitted Bets
- Sports Betting: The 2020 legislation is the law that makes legal what was previously not.
- Online Casinos: Legal with the right to a license.
- Brick-and-Mortar Casinos: Legal with the right licensing.
Prohibited Bets
- Military Personnel: From April 2024, online gambling for the military is not allowed.
- Unlicensed Offshore Casinos: These are unlawful and do not pay taxes in Ukraine.
Timeline of Key Events
- 1991: Ukraine becomes an independent country; gambling is legal.
- 1991-2009: The golden age of gambling with the loose regulations.
- May 15, 2009: Gambling ban passed.
- June 23, 2009: The president has finally approved the gambling ban.
- June 25, 2009: Gambling ban now becomes law.
- January 6, 2010: Gambling is not covered by the licensable activities.
- 2011: The internet gambling is now illegal.
- 2020: Online casinos are now considered legal as per the Law No. 768-IX.
- February 2021: The first gambling licenses were given out.
- April 2024: The new regulations which prohibit online gambling for the military.
Conclusion
The gambling industry in Ukraine and the sports betting sector have changed a lot during these years. Starting from the golden age when there was no regulation to a total prohibition and then to re-legalization under strict laws, Ukraine’s gambling industry has passed through all these stages. The Ukrainian Gambling Council is now in charge of the industry and sets strict rules which make it a safer and regulated environment for both operators and players.