The legalization of the gambling business in Ukraine is a topic that causes many discussions and disputes. After a long ban since 2009, 2020 has become a turning point. In this article, we will consider how the legalization of the gambling business in Ukraine took place and what opportunities have opened up for legal casinos.
Legalization of gambling business: history
In 2010, a draft law was proposed that provided for the legalization of casinos, bookmakers and other types of gambling. However, this draft law did not find support among the deputies of the Verkhovna Rada. The main reasons for the failure of the first attempt at legalization were:
- At the time of the first attempt at legalization, the country was not ready to implement the necessary infrastructure to control and regulate the gambling business.
- Politicians feared that supporting such a law would negatively affect their ratings among voters. The legalization of gambling was seen as a controversial topic that could cause significant resonance in society.
- At that time, Ukrainian society had a negative opinion about gambling. Many citizens believed that legalization would lead to an increase in gambling and other social problems.
Only in 2020, the legislators decided to lift the ban and passed a law regulating the activities of casinos, bookmakers and other gambling. This step was due to the desire to bring the business out of the shadows, create additional sources of income for the budget and attract foreign investments.
Basic provisions of the law
The law on the legalization of the gambling business provides several key provisions:
- Licensing requirements. In order to have the right to organize gambling, companies must obtain appropriate licenses. The cost of a casino license in Kyiv is about 36 million hryvnias, and in other regions - about 23 million hryvnias.
- Casino location. Casinos are allowed to open only in five-star hotels in Kyiv and four-star hotels in other cities.
- Age restrictions. Participation in gambling is allowed only to persons who have reached the age of 21.
- Liability of operators. The law obliges gaming business operators to adhere to high standards of responsibility to customers, in particular to introduce self-control mechanisms and restrictions for gambling addicts.
These provisions are aimed at ensuring transparency and security in the field of gaming business, as well as at protecting the interests of players and society as a whole.
Advantages of legalization
The official recognition of this field of activity in Ukraine had a number of positive consequences that favorably affect the economic and social development of the country.
One of the main results was an increase in revenues to the state budget. Thanks to the regulation and taxation of this area, the state receives significant funds that can be directed to the financing of various social programs and infrastructure projects.
Bringing this activity out of the shadows helps reduce illegal operators who previously operated without proper controls. This reduces the level of criminalization and increases the safety of citizens. The state also gets the opportunity to fight corruption more effectively, because licensed operators are obliged to follow strict rules and reporting.
An important aspect is also the protection of the rights of the participants of this activity. Legal operators are required to adhere to high standards of rights protection, which contributes to increased security and confidence in the industry.
The opening of new opportunities for the development of the tourism industry is another positive result. Investors actively invest in the development of hotels, entertainment complexes and other infrastructure facilities, which contributes to the growth of the country's tourist attraction.
Impact on the hotel business
The new rules for placing certain establishments have significantly changed the investment attractiveness of the hotel business. This created new opportunities for the development of projects in this area.
Establishments with a high level of service and infrastructure received an additional flow of customers, because now they can offer not only recreation, but also other entertainment.
Studies show that the development of a certain field of activity can stimulate the growth of the tourism industry in Ukraine. Visitors who come to the country use not only specific services, but also spend money in other areas: restaurants, shops, entertainment facilities.
This leads to the development of hotel infrastructure in regions where there was no significant flow of tourists before. The opening of special facilities in four-star hotels attracts new guests, which has a positive effect on the economy of local communities. Investors are actively investing in the modernization and construction of new hotels that meet new requirements.
It is important to note that establishments that offer additional services and entertainment become more attractive to visitors. This can include special offers, organizing events and tournaments, which also help to increase room occupancy and increase profits.
Having considered the topic of legalization of the gambling business in Ukraine, it can be seen that this process significantly increased the competitiveness of Ukrainian hotels on the international market. Legal casinos are becoming attractive for tourists from all over the world, which contributes to the development of tourist infrastructure and the improvement of Ukraine's international image.