The prohibition of the gambling business in Ukraine at the legislative level was implemented in 2009, but in fact many lottery operators circumvented this law in every possible way - enterprising dealers found various niches for this.
Such circumstances forced the Verkhovna Rada to adopt a decision in 2020 regarding the regulation of the gaming business. The new law allowed casinos to operate offline and online. It also legalized the activities of bookmakers, online poker and slot machines.
However, the presence of a license became a condition for conducting the relevant business. Currently, the absence of such a permit is punishable by a fine of up to 680,000 units of the national currency, and in the case of a repeated violation – up to 850,000 hryvnias or imprisonment or deprivation of liberty.
Licenses for virtual and land-based casinos are issued by a special gambling regulation commission.
Official casino license in our country. What should you know about the cost?
The size of the amount that legislators of institutions of the relevant industry have to spend for a legal, state permit for such a business depends on a number of factors. Among them are the city and location of the gambling establishment, as well as the number of slot machines and gaming tables.
Estimated costs for a casino license, taking into account these and other factors, are set out below.
The highest value of this permit is for those businessmen who open a casino in the capital. In this case, they will have to pay at least 400 million units of the national currency for licensing their business activities. In addition, the obligation of all Kyiv casinos is to make annual payments to the state budget in the amount of 80 million hryvnias.
A license to operate casinos in other regions of the country costs 201 million hryvnias, and the current legislation provides for annual tax payments for them in the amount of 40 million hryvnias.
Such conditions for obtaining an official permit are related to exclusively land-based gaming clubs operating online.
If an entrepreneur is going to open an online casino, a state license will cost him less. In this case, its value will be more than 43 million hryvnias, and the size of the annual payment will be 26 million units of the Ukrainian national currency.
Obtaining a state permit and the expense of paying annual taxes are only part of the financial challenges associated with opening a gambling business.
In addition, entrepreneurs will have to spend money to solve the following issues:
- purchase of own equipment necessary for the opening and operation of the institution;
- rent of premises for him;
- monthly wages of employees and service personnel;
- infrastructure investments.
A necessary item of expenditure is also the financing of advertising activities - in order for any commercial company, including a casino, to bring real profit, it must be popularized.
What are the state law requirements for obtaining a gambling license?
Not everyone can get permission to conduct this kind of business in our country - there are a number of legal restrictions in this regard.
A successful official licensing procedure is available only to those applicants who meet the following criteria prescribed in the regulatory documentation:
- have the status of a legal entity, Ukrainian registration, as well as the required amount of start-up capital;
- do not have dubious criminal histories - an impeccable reputation is necessary for both the applicant, the casino funder, and his managers, if they are different persons;
- operators are required to prove their financial stability and ensure the necessary amount of investment required for the process of starting the gaming establishment;
- the applicant must take care in advance to create a project plan for the location of his casino in the relevant territory.
Compliance with all the specified requirements for the state legalization of gaming business in Ukraine is mandatory.
There are also a number of grounds stipulated by the Legislation for refusing to grant a license to conduct a gaming business.
For example, it will not be possible to obtain a corresponding permit document if it is impossible to verify the origin and sources of funds, which are the authorized capital of the applicant, the founder of the casino or several persons who are going to establish the relevant business.
Persons with a criminal record will not be able to obtain a license, in particular, if the reason for such punishment was the applicant's violation of legal norms related to theft and other crimes in the field of economic activity, the field of using computer systems and providing public services.
The legalization of the gaming business is not available for persons who, as a result of state monitoring, have been exposed as recipients of income in an illegal way, investors in terrorist acts, and distributors of weapons of mass destruction, which are used against Ukraine.
If inconsistencies and unreliable data are found in the submitted documentation for obtaining an official license for a legal casino, this is also a reason for refusing to grant permission to open a gaming business.
If the applicant for a license has received a refusal and considers the reasons for this to be unfounded, he has the right to appeal the relevant decision - for this, he should file a complaint with the District Administrative Court.
Does the legalization of gambling have advantages in our country?
We can name at least three relevant priority features that are beneficial not only to operators of gambling business, but also to the entire society.
- An official opportunity for casinos and other gaming clubs to conduct their activities legally and openly. It is a guarantee of reliable and stable business development. After all, with the support of the state, operators are not threatened with repression by law enforcement agencies, nor the risk of reimbursement of significant monetary fines or confiscation of property.
- Attracting domestic and foreign investors. Operators are not deprived of the right and opportunities to attract the allocation of funds necessary for their business to successfully develop and update. The result of an appropriate strategy is the support of the local economy and the creation of new jobs. The direction of the investors' activity may be the implementation of projects aimed at improving the infrastructure in the areas near the casino. This has an important positive significance for the economic growth of the region.
- Activation of the tourist flow to Ukraine. As you know, fans of gambling clubs, including casinos, are forced to spend on accommodation in hotels, meals in restaurants, various types of entertainment and use of other types of services. Therefore, thanks to the flourishing of the gambling business, the local economy, including the transport business and the hotel business, will receive additional profits.
The specified features prove that the consequence of casino legalization is a positive impact on the socio-economic development of the Ukrainian state.
The validity period of the state license, which allows you to legally engage in business activities related to the organization and conduct of online gambling in Ukraine, provided for by the current legislation, is limited. He is five years old.