Ukrainian President signs legislation legalizing land-based and online gambling

In Ukraine and President Volodymyr Zelensky (pictured) has reportedly added his signature to a piece of legislation to officially legalize a wide range of gambling activities including those conducted online and via mobile devices.

According to a report from the Kyiv Post newspaper, the required Presidential approval of Bill 2285-D was obtained yesterday following the proposal’s overwhelming passage by parliament via a second reading in January. The endorsement purportedly means that the nation will now allow casinos to be located inside upmarket hotels following the payment of an operator licensing fee that is to stand at around $4.5 million with regards to properties located in Kiev or approximately $2.6 million for those situated elsewhere.

Pricey provisions:

The online news domain at iGamingBusiness.com used its own report on the matter to detail that Zelensky’s sanction has moreover legalized online gambling, sportsbetting and slot parlous with five-year licenses for the former set at roughly $1.1 million with an about $860,000 add-on for any operator wanting to offer games of poker. This source explained that bookmakers hoping to offer their services to the Ukrainian population will be required to hand over a $2.5 million licensing duty although all of these charges are to be tripled until the nation of 41.6 million inhabitants launches an official online monitoring system sometime in the next 30 months.

Security safeguards:

iGamingBusiness.com reported that the legislation also allows operators to market their wares online or via third parties such as affiliates while making clear that only entities registered in the Ukraine are to be permitted to hold operating licenses. This latter part of Bill 2285-D was purportedly included so as to stop those from possible aggressor states such as neighboring Russia from gaining a presence in the nation’s coming casino and iGaming industry.

Pioneer player:

First introduced in October, the legislation has now moreover reportedly set the legal gambling age at 21 and could eventually lead to an annual tax windfall of up to $190 million. iGamingBusiness.com claimed that locally-established online casino operator Parimatch is expected to be among the first to apply for one of the nation’s new iGaming licenses with the firm’s Chief Executive Officer, Sergey Portnov, having publicly thanked Zelensky ‘for delivering on his pledge to legalize gambling in Ukraine’.

Reportedly read a statement from Portnov…

“President Zelensky has a shown that he is a man of his word and we fully support his agenda to liberalize the local economy. Parimatch has long argued that the development of a fair and regulated betting industry will really benefit Ukraine.”

Tax tribulation:

However, before land-based or iGaming operations can officially get underway, Ukrainian legislators must purportedly pass an appropriate tax system. iGamingBusiness.com reported that the country’s politicians are now currently said to be considering five differing proposals that could see the eventual duty on online gambling services stand anywhere from a high of 25% of gross gaming revenues down to a more reasonable 10%.

Portnov reportedly pronounced…

“We are fully committed to conquering our home market by delivering a product that can entertain the people of Ukraine. We are also proud that we can now contribute to the country’s economy and help grow its technology industry. However, for us to deliver these benefits in the long-term we need a fairer tax system.”