Ukraine's gambling industry registers record tax contributions in February

Ukraine's Ministry of Finance has released its tax report for February, revealing a notable surge in contributions from the gambling sector. 

During the month, Ukraine saw a total contribution of UAH 184.8 billion ($4.85 billion) in taxes and fees from all businesses and sectors, marking a 65% increase compared to January. Payments to the State Tax Service accounted for UAH 107.4 billion ($2.82 billion), showing a significant uptick of 78%. This amount included various taxes such as corporate income tax, dividends, value-added tax, personal income tax, military levy, exercise tax, and rent.

However, income from the State Customs Service experienced a decline of 15.9%, amounting to UAH 39.8 billion ($1.04 billion). Despite this decrease, the general and special funds of the state budget received a total of UAH 229 billion ($6.01 billion) by the end of February, with approximately UAH 36.1 billion ($0.95 billion) allocated to the Pension Fund and social insurance funds.

Of particular note is the significant increase in tax contributions from the gambling industry, which totaled UAH 1.8 billion ($0.047 billion). This represents a 370% surge from the previous month, highlighting the sector's robust performance.

In January, the gambling industry's contribution stood at UAH 400 million ($10.5 million), making February's figures particularly striking.

In August 2023, the country reinstated an 18% turnover tax on online gambling, aiming to bolster revenue streams. Additionally, Ukraine has intensified its crackdown on illegal gambling activities and the influence of Russian gambling companies within its borders. Following Russia's invasion, Ukraine pledged to eliminate any entities funneling gambling proceeds to the Russian economy.

In this context, the US Gaming Control Board in Nevada has offered assistance to Ukraine in expelling Russian influence from its gambling sector. 

Notably, Ukrainian's Parimatch faced scrutiny over its alleged ties to Russia, prompting efforts to demonstrate its independence from the country. A petition urging the lifting of sanctions against Parimatch even reached President Volodymyr Zelenskyy.