Ukraine's parliament legalizes gambling

The Verkhovna Rada, Ukraine's parliament, has passed the bill on the legalization of gambling in the second reading and as a whole.

The adoption of the draft law on state regulations of activities regarding the organization and holding of gambling (No. 2285-d) was backed by 248 lawmakers with the required minimum being 226 votes, according to an UNIAN correspondent.

Legal types of gambling

The document lists the types of gambling allowed in Ukraine, namely: online and offline gambling; online betting and betting in shops; the issue and holding of lotteries; the organization and holding of poker games online.

Casinos & slot machines

The bill regulates that casinos could be housed only in four- and five-star hotels across Ukraine except Kyiv. Only five-star hotels in the capital city will be allowed to run casinos.

The document also limits the number of slot machines to 40,000 units. Their use will be licensed and licenses will be sold via e-auctions. The draft law sets requirements for premises where slot machines will be used – they could only be deployed in three-, four- and five-star hotels.

Minimum age for gambling

What is more, the bill limits the gambling age to 21 and older and sets the rules for players and their identification. Strict financial sanctions are envisaged for the violation of the rules.

State regulations

The draft law also provides that gambling activities will be regulated by a special agency – the Commission for the Development and Regulation of Gambling, subordinate to the Cabinet of Ministers of Ukraine.

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In addition, the document introduces an online monitoring system that will allow state control over the activities of gambling operators by receiving data from their gambling equipment connected to a single system.

The explanatory note says that the adoption of the bill will let the Ukrainian authorities secure additional budget receipts, which will be used to finance the healthcare sector, sports, and culture.

Gambling milestones

• Gambling in Ukraine was outlawed in 2009. Only lotteries remained within the legal field.
• Government-prepared bill No. 2285 on the legalization of gambling, which allowed casinos in five-star hotels only, failed to pass its first reading in parliament on December 19, 2019.
• After that, the Cabinet instructed police and the tax authorities to shut down all illegally operating gambling outlets, disguised as authorized lottery operators.
• Head of the Verkhovna Rada's Financial, Tax and Customs Policy Committee Danylo Getmantsev estimates that Ukraine may receive UAH 4.5 billion (about US$166 million at the forex rate as of July 14) this year thanks to the legalization of gambling.