The Verkhovna Rada has registered the draft Law "On State Regulation of Activities in the Organization and Conduct of Gambling", elaborated by the Cabinet of Ministers of Ukraine, under No. 2285.

The Government's bill aims to comprehensively streamline the organization and conduct of gambling. In particular, the Government proposes to establish the following:

• limit in the number of licenses, gambling establishments and gaming equipment;
• the requirement to place gambling establishments exclusively on the territory of hotels (three-star - five-star hotels - for slot machines and five-star hotels - for casinos);
• mandatory verification of players when accepting bets/payouts and registering wins in the “Online Monitoring System” administered by the tax service;
• mandatory certification of gambling equipment according to international standards;
• increased financial and criminal liability for non-licensed gambling activities;
• mandatory targeting of fees for gambling licenses directed to the development of sports, medicine and culture in Ukraine.

Adoption of the bill will allow to regulate the problem of illegal gambling business distribution, prevent gaming addiction. The legalization of gambling business will also increase revenues of the budget up to UAH 5 billion, but the final figures of the expected budget earnings will depend on the version the MPs adopt the law.

Background

Since 2009, the Law of Ukraine “On Prohibition of Gambling in Ukraine” has been in force. But the results of this ban have led to gambling being a shadow business and their organizers receiving a surplus; the State budget hasn’t been filled through taxes and fees from such gambling industry. Involving minors in the gambling business was specific but not the only problem.