Ukraine passes landmark law to legalise online gambling
Special sitting of Verkhovna Rada accepts second reading of draft bill which looks set to become law in August 2020
Ukrainian gambling advocates received a welcome boost today as MPs in the Verkhovna Rada voted overwhelmingly to approve the second reading of a draft bill to regulate online gambling.
Draft bill 2285-D was voted through by 248 votes to 95 following a special sitting of the Rada.
Under the process, the bill will now be signed by the secretariat of the main Rada committee within a maximum period of 10 days, before again being signed by the main head of the Rada five days later.
Once this is completed, the signed bill will be passed to the President of Ukraine, Volodymyr Zelensky, who has a maximum 15 days to sign the bill into law. It will then be published in the Ukrainian official gazette before becoming law.
More than 100 separate amendments to the initial legislation were also approved by the Rada.
The passage through to a second reading ends a year-long saga for Ukraine, which first embarked on the road to regulation back in October 2019.
Betting operator Parimatch, which has actively lobbied for Ukrainian gambling regulation, welcomed the vote as a “landmark moment” for international operators and the Ukrainian economy.
A spokesperson for the firm said: “The development of a fair and regulated betting industry is excellent news for Ukraine. It shows the world we are open for business.
“It will draw international investment into and help grow important technology and payments sectors that are the foundation of the betting industry.
“The bill includes many best-standard international practices that will form the framework of a transparent and competitive market,” Parimatch added.
Under the approved legislation, sports betting operators will pay €2.8m (£2.5m) for a five-year Ukrainian licence, while online poker licences will cost just €160,000 (£142,000).
B2B operators will also be required to apply for a licence to operate in the country under the approved bill, with licence fees set at €48,000 for five years.
In the case of both online casino and online sports betting, licence fees will reduce substantially once the Ukrainian government launches its online real-time monitoring system for player bets, deposits and winnings.
The legislation includes a timescale of a minimum of two years for this to occur and operators will then have a minimum of six months to connect to the system.
Online casino licence fees will reduce to €208,000 (£185,000) thereafter, while sports betting licence fees will decrease to €960,000 (£850,000). Licence fees for online poker will remain unchanged.
Operators looking to expand into Ukraine must first create a legal entity incorporated under Ukrainian law.
The bill also calls for the creation of the new Ukrainian gambling regulator within two months of its passage into law.
Separate laws confirming tax rates applicable to online gambling operators are currently being debated in the Verkhovna Rada, with both a taxation on GGR and a no-GGR tax but increased licence fee model under consideration.