Located in Eastern Europe, Ukraine is a unitary republic with an estimated population of 43.9 million as of 2021. It ranks as the second largest country in Europe in terms of geographical area and covers over 603,000 square kilometers, including the Crimean Peninsula. The country has many of the traits of a major economy, including plenty of fertile farmland, an adequate education system, a well-educated workforce, and a developed industrial sector.
Despite this, Ukraine remains a developing country with a stagnant economy, plagued by high rates of poverty and rampant corruption. It topped the list of the poorest European countries in 2020, with a gross domestic product (GDP) per capita of US$3,727. Ukraine has had a turbulent relationship with gambling over the last decade, largely because of the tragic events that occurred in a Dnipro gaming hall, when a fire killed nine people and severely injured eleven others.
The accident prompted the Ukrainian Parliament to prohibit both gambling businesses and participation in gambling in 2009. The ban remained in place until July 2020, when current President Volodymyr Zelenskyy approved new legislation that decriminalized gambling and opened the industry to private operators. Ukrainian gambling laws are relatively flexible and cover a broad range of land-based and remote activities.
The Ukrainian Commission for the Regulation of Gambling and Lotteries is mandated to oversee both terrestrial and online gambling in the country. The local regulatory framework and the requirements for licensees in Ukraine are quite stringent. Each license application undergoes a thorough review by the regulatory authority, which can easily refuse permits to applicants that have not met all licensing conditions.
Laws That Govern the Ukrainian Gambling Industry
Gambling activities in the country were illegal from 2009 to 2020 under the Law on the Prohibition of Gambling Businesses in Ukraine. The legislation was enacted after a fire broke out in the Metro Jack Pot slot-machine parlor in the city of Dnipro (formerly Dnipropetrovsk). The blaze began in one of the slot machines and spread rapidly. The parlor was located inside a five-story apartment complex. Nine people died in the accident, including two staff members, and eleven others sustained serious injuries.
The 2009-2020 Gambling Ban in Ukraine
Law № 768-IX of 2020Licensing Requirements and Tax Rates in Ukraine
The 2020 legislation provides for seven main types of gambling licenses and three secondary ones. The primary licenses are for land-based casino gaming, land-based slot parlors, land-based sports betting, online betting, land-based hippodrome pool wagering, online casino gaming, and online poker.
Land-based license holders must also obtain secondary licenses for betting shops, gaming tables, or slot machines. Software companies can apply for business-to-business software supply permits. Ukrainian law does not impose any restrictions on the maximum number of gambling licenses. Furthermore, the same company can accumulate several licenses for different gambling services.
Another condition stipulates that only legal entities from Ukraine can apply for gambling permits. However, these entities can be funded or controlled by companies from outside the country as long as they are not Russian. Firms registered in jurisdictions on the FATF (Financial Action Task Force) blacklist cannot apply at all.
Requirements Imposed on Land-Based Gambling Licensees
Applicants for land-based licenses must also obtain permission confirming that the premises they intend to use for operations meet all requirements set forth by Ukrainian law. Land-based gambling premises can only be located in designated places. For instance, casinos in the capital, Kyiv, can operate only on the premises of five-star hotels with at least 150 rooms.
The minimum required floor space of such casinos must be 500 square meters or more, and the casino floor should be separated from non-gaming areas. Gaming venues in other major cities, such as Dnipro or Odessa, can operate in hotels with four or five stars and at least 100 rooms. Casinos may operate in larger recreational resorts outside Ukrainian cities, but only if the resorts cover at least 10,000 square meters and house five-star hotels.
Certain requirements are in place for the equipment used in land-based casinos. Venues in cities with populations of more than half a million must have at least ten gaming tables and fifty certified slot machines. In cities with smaller populations, a casino must have at least five gaming tables and twenty slots.
Land-based gambling venues must have at least fifty employees aged 21 or older. Management and staff members are not required to apply for special permits, as is the case in countries like the UK. The rules of all available games, their winning odds, and licensing information must be available in both English and Ukrainian.
Similarly, licensed slot parlors in the capital can operate in hotels with three to five stars and at least fifty rooms. The same applies to licensed betting shops, although they can also be located in designated hippodromes. Slot parlors must occupy at least 300 square meters, while betting shops must cover a minimum of 50 square meters.
License Fees and Duration
Upon application, interested Ukrainian companies must submit their documents to the local regulator for evaluation. Each applicant must confirm their source of funds. A company’s owners, significant shareholders, and key personnel should all present certificates proving they have no previous criminal record.
The Ukrainian regulator requires around fifteen business days to reach a decision and informs applicants within five days afterward. Approved companies must pay their licensing fees for the first year of operation within ten business days. Rejected applicants can appeal the regulator’s decision in court.
As for the license fees, they vary based on the minimum monthly wage set by the Ukrainian government at the beginning of each year. In 2021, license fees imposed on online gambling operators amounted to ₴39 million for casino games, ₴30 million for online poker, and ₴180 million for betting shops. The primary permits for sports betting cover both land-based and online wagering.
Lottery licenses are valid for ten years, while the primary permits for other gambling activities are valid for five years. Law № 768-IX does not contain provisions concerning the renewal or extension of gambling permits. Approved operators must apply for new licenses after their old ones expire.
Current legislation also disallows license suspension. However, the Ukrainian regulatory body has the right to invalidate permits on several grounds. For example, this could happen in cases of delayed licensing fee payments or if an operator has submitted false information in its license application documents. Companies with invalidated permits have the option to appeal the regulator’s decision in court.
Gambling Taxes in Ukraine
Gambling taxation in the country falls under the scope of the Ukrainian Tax Code. Under its provisions, gambling companies are subject to an 18% tax on their gross gaming revenue, plus corporate income tax, again at 18%. Slot games are taxed at a rate of 10% on their gross revenue. Additionally, gaming companies’ employees have 1.5% withheld from their salaries in the form of a temporary military tax.
Lottery operators are taxed at higher rates of 30% on their gross revenue, in addition to the 18% corporate income tax. Players’ profits resulting from gambling and lottery participation are exempt from value-added tax (VAT). However, the Ukrainian Tax Code requires gambling operators to deduct 18% of their customers’ winnings as personal income tax, along with 1.5% in military tax.
Social Responsibility and Gambling Restrictions in Ukraine
Under Law № 768-IX, authorized gambling operators must meet their social responsibility obligations, starting with mandatory verification of each customer’s age and identity. Employees must periodically undergo specialized training on responsible gambling and addiction prevention. All gaming venues, mobile apps, and websites must prominently display information about the game rules and responsible gaming.
Legal Gambling Age and Identity Verification
The Register of Excluded Persons
Restrictions on Betting ShopsRestrictions on Gambling Advertising and Promotions
Article 22-1 of Law № 270/96-VR imposes several restrictions on marketing activities related to lotteries, betting, and gambling in general. The article strictly prohibits gambling advertisements on radio and television between 6 am and 11 pm. The ban applies to all forms of signal transmission, including cable, satellite, and online broadcasting.
No Gambling Ads in Public Transport
Marketing Information Should Be Reliable
Bonuses Cannot Be Granted for Losing MoneyAML Policies and Payment Restrictions
Participants in the Ukrainian gambling market must comply with Law № 361-IX of December 2019, also known as the Law on Anti-Money Laundering. The legislation mandates financial monitoring of all licensed gambling businesses. It requires operators to perform customer due diligence checks for all transactions exceeding ₴55,000 (approx. $2,040). Operators may postpone or refuse the payment of winnings to meet anti-money laundering (AML) requirements.
All Stakes Should Be in UAH
No Gambling on CreditSanctions for Violations of Ukraine’s Gambling Law
Organizing and running unauthorized gambling is liable to punishment under Ukraine’s Criminal Code. Those found guilty face fines ranging from ₴170,000 to ₴850,000 (approx. $6,300 to $31,600). Authorized operators risk sanctions for violations such as using non-certified gaming equipment, including roulette tables and slot machines.
Those caught tampering with gaming equipment incur fines amounting to 1,000 minimum monthly wages, or approximately ₴6 million (around $223,000). The sanctions for underage gambling are equally severe. Operators who admit minors to their premises or allow them to gamble are subject to a ₴3 million fine. Involving underage individuals in gambling is punishable by three to seven years in prison.
Those who produce and distribute unauthorized gambling marketing materials are liable for fines of up to ₴1.8 million. Ukrainian nationals involved in unlicensed gambling activities may incur administrative fines of ₴25 to ₴425, and their stakes will be forfeited. That said, players rarely face prosecution, as local authorities mainly focus on sanctioning non-compliant operators.
The regulatory authority typically requests offshore online operators and hosting providers to restrict Ukrainian residents from accessing their websites. Payment companies, banks, and other financial institutions within Ukraine cannot facilitate transactions to gambling sites without local licenses. Local players can find a list of licensed online gambling providers on the Ukraine Gambling Commission’s website.
Conclusion
The 2020 legislation adopted by the Ukrainian government paved the way for the development of a properly regulated gambling industry in the country. With adequate regulations in place, local gamblers can enjoy higher levels of player protection, fairness, and security. Although some people opposed the legalization at first, many embraced it because of the numerous economic opportunities it offers.
The most tangible benefits of legal gambling in Ukraine are the jobs it creates and the additional tax revenue the state collects. Ukraine may attract more interest from gambling companies if the newly proposed Bill № 2713-D becomes law. It aims to standardize gambling taxes across all verticals and reduce them from the current rate of 18% to 10% of GGR. So far, the Verkhovna Rada has approved the bill only on first reading.
Legal Gambling Age and Identity Verification
Operators must ensure compliance with the minimum legal age, which is 18 years for lottery participation and 21 years for all other gambling products. The same age restrictions apply to staff members and visitors in land-based casinos. Online gambling sites must verify each customer by using electronic signatures, BankID, MobileID, or similar methods. If they are based in the country, they may accept bets only from Ukrainian nationals.