Ukraine gambling legalization bill passes first reading

President Volodymyr Zelensky instructed the Verkhovna Rada, Ukraine's parliament, to adopt a law on the legalization of gambling in Ukraine by December 2019, but it failed the vote on draft law No. 2285 in the first reading.

2020-01-20

Ukraine

Reading time 1:42 min

It was backed by 260 lawmakers last week. The number of slot machines is limited to 40,000, and there is no provision for the possibility of placing gambling machines and bookmaking points in separate buildings. Another bill tabled this month seeks to reduce the tax rate on gambling establishments' revenue from 18% to 10% of total income.

A bill on the legalization of gambling in Ukraine has passed its first reading. The relevant bill on state regulation of activities regarding the organization and conduct of gambling (No. 2285-d) was backed by 260 lawmakers with the required minimum being 226 votes, as reported by UNIAN.

The bill legalizes land-based and online gambling in Ukraine (including casino verticals and bookmaking), lotteries, and allows casinos to operate as part of five-star hotels only. The area of such establishments shall be at least 500 square meters. There is no provision for the possibility of placing gambling machines and bookmaking points in separate buildings.

Specific requirements are established for the compliance of gambling equipment used for gambling with generally accepted international standards, and the number of slot machines is also limited - up to 40 thousand, according to 112 Ukraine.

The age of the player is expected to be increased from 18 to 21 years, as well as requirements for players and their identification, and tight financial penalties for non-compliance with such requirements. It was also stated that a special agency will be set up in order to check compliance with both the law and license conditions. For the first year, the state can receive nearly 188 million dollars of income from gaming.

President Volodymyr Zelensky instructed the Verkhovna Rada, Ukraine's parliament, to adopt a law on the legalization of gambling in Ukraine before December 1, 2019. In October, the Cabinet of Ministers submitted the bill to the Rada, and on December 19, the parliament failed the vote on draft law No. 2285 in the first reading.

Following that, the Cabinet of Ministers ordered the police and the Tax Service of Ukraine to shut down gambling establishments operating under the guise of lotteries. On January 3, lawmakers tabled a bill in parliament to amend the Tax Code of Ukraine to reduce the tax rate on gambling establishments' revenue from 18% to 10% of total income. Moreover, it proposes that gambling winnings should be exempt from individual income and war taxes.