For over ten years, the Ukrainian government banned gambling of any form in the country. However, in 2020 the ban was overturned, and gambling resumed. The Gambling and Lotteries Regulation Commission is in charge of the regulations that guide all gambling houses and casinos. The gambling industry is up and running and has become very successful.
The gambling business has created jobs and brought in hefty sums of money into Ukraine. It is for this reason that a regulation commission had to be developed to monitor the activity of gambling entities. According to the regulations set, the following are considered legitimate gambling establishments.
▪︎Slot machine houses
If they meet all the requirements needed, these establishments may operate legally within Ukraine. In this article, we will look at the requirements needed to run a gambling entity successfully.
Overview of casino regulations in Ukraine
Casinos in Ukraine’s capital Kyiv, have different regulations from those in other cities. If a casino is built in Kyiv, it has to be in a five-star hotel. In other cities, it may be built in a four-star hotel. However, the four-star hotel should have at least a hundred rooms. Also, casinos may be built in suburban areas, in complexes covering an area of at least ten thousand square meters.
Special Territorial gaming zones were also created. In these zones, casinos may be built and operate legally. This was a government initiative to create employment for people residing in low-income areas.
To run a casino, investors need to acquire a license. This license is valid for ten years. If, however, the investor builds a five-star hotel with more than two hundred rooms, they may be exempted from paying for the license. Other aspects you should know regarding the gambling business in Ukraine are:
▪︎Casinos may also be run online;
▪︎No special rules govern the location of premises ▪︎when it comes to online betting;
▪︎The operator should be Ukrainian;
▪︎To register an online casino, a registered website is required;
▪︎The government may request information for ▪︎beneficiaries and documentation for the gambling operator.
Betting House Regulations
Betting houses in Ukraine may be built in hotels starting from three-star rating going up. These hotels should have at least 50 rooms, and the land they may be made on needs to cover at least fifty square meters. As betting on horses and dogs is common, betting houses may be located at the respective tracks. In Ukraine, betting houses may operate both online and offline. Licensing will differ depending on whether it is online or offline.
Slot machines houses
Slot machines are one of the most popular gambling tools. Slot machine houses may be part of hotels that have a 3-star rating going up. The hotels should have at least fifty rooms. Up to 250 slot machines may be installed in the house. Casinos may also apply for a license to install slot machines.
This, however, is an entirely different process from the one of acquiring a casino license. It would be essential to note that slot machine houses may not be situated in an area with less than 10,000 residents. Additionally, for obvious reasons, a slot machine house may not be built within five hundred meters of an educational institution.
Online Poker Regulations
In Ukraine, offline poker is not considered gambling. It falls in the category of sports games. Online poker is considered gambling as it is mostly probability at work. As is the case in all betting activities, a license is required to run an online poker club. The All-Ukrainian Sports Poker Federation (USPF) regulates the activity of all poker clubs. This body is responsible for inspections and verifying poker club documentation. Profits from online gambling are to be logged and must be reported to the USPF.
Obtaining a License
Licenses for gambling establishments are usually for five years. To acquire this license, a fee needs to be paid. The cost depends on what type of gambling establishment is to be opened. For online poker, UAH 24 million is to be paid. For a casino, approximately UAH 284 million needs to be paid. Additionally, UAH 826.5 thousand is to be paid annually for a roulette table.
If the casino has a slot machine, UAH 28.3 thousand must also be paid. Additional costs may have to be paid again depending on the type of establishment. All costs considered, the average total fee paid to obtain a five-year gambling license is in the range of UAH 40 million.
Since gambling in Ukraine has resumed, an investment opportunity is now available. Establishments have started opening, and the government anticipates revenue generation to be in the hundreds of millions. The government has not been disappointed as the gambling business has managed to rack fortunes over the past months.
To keep gambling legitimate and maintain cash flow, regulation of transactions and creation of gambling establishments is always closely monitored. Issues such as money laundering are key worries when it comes to casinos. The authorities have therefore invested time into ensuring that gambling establishments are operated in the most transparent manner possible. The intervention of gambling establishment development by the authorities begins right from the start. This has allowed the commission to have the upper hand in monitoring illegal activity.