Ukraine eyes online gambling regulatory regime as early as January 2020
New bill establishes regulator, licensing process and opens door to international operators
The Ukrainian government is readying a full licensing and regulatory regime for online casino and sports betting as early as January 2020, EGR understands.
Legalisation efforts centre around a draft bill which has yet to be passed to the Ukrainian parliament, but sources claimed this will take place within the next week.
EGR understands the bill is expected to be passed by Ukraine’s ruling Sluha Narodu (Servant of the People) party, which commands a parliamentary majority, within the next month.
Under the terms of the bill, operators will be able to obtain a single licence for both online casino and sports betting, with a separate licence available to operate land-based and online poker.
EGR understands these licences will be sold through a public auction to be held by the as-yet unestablished Ukrainian gambling regulatory authority.
The regulator will be set up by the Ukrainian government as part of the bill, which provides for a three-month period for the set-up of the regulatory authority and potentially opens the door for licence auctions to take place as early as February 2020.
It is believed the auction starting price will be set at $1m (£812,000), with a potential cap on the number of licences available.
EGR understands there will be no restrictions barring international operators from entering the Ukrainian market, however they will be required to operate a Ukrainian-based subsidiary to qualify for a licence.
The taxation levels for online operators have yet to be agreed.
Maksym Liashko, a partner at Parimatch, welcomed the legalisation of the online industry and the specific deadlines for this to take place.
Liashko highlighted the need for an adaptation period for both the Ukrainian state in bedding in the new gambling regulatory entity and for those operators already targeting the Ukrainian market to adapt their software and corporate model to comply with regulations.
“The most important issue is taxation and how the future legislation is going to regulate it. We hope that the state will make the right decision and that the customers will be exempted from the tax on winnings,” Liashko said.
“Otherwise, the customers can make the choice in favour of other foreign offshore operators. It would be a losing option for the future legalized industry,” Liashko added.