Gambling business in Ukraine: requirements and restrictions
In addition, gambling business in Ukraine has become a regulated activity. Therefore, from now on only those entities that have received special licenses and adhere to all of the requirements provided by the Law and license conditions can engage in it. The licenses itself are issued by a special body – the Gambling and Lottery Regulatory Commission (Regulator).
The law provides for three types of licenses that allow online gambling business in Ukraine. These are the licenses for (1) online casinos (2) online poker and (3) online betting activities. Each of these three licenses has its own fee and validity period, as well as sets restrictions for its owner.
(as of 2021)
|UAH 39M (approx. USD 1.4M)
- license gives right to organize a limited list of online gambling activities – roulette, craps, card games and slot machine games;
- it is prohibited to conduct online poker and online poker tournaments without obtaining a license for online poker;
- it is prohibited to conduct gambling games that have lottery features (including acceptance of bets on results of lottery draws).
|UAH 30M (approx. USD 1M)
- it is prohibited: (1) to conduct poker games and poker tournaments not provided for in the poker game organizer’s rules; (2) offer as winnings alcoholic beverages, beer, soft drinks, table wines, tobacco products or other property, possession or disposition of which requires appropriate permits or licenses; (3) compel visitors to participate in poker games.
|Internet bookmaking activities
|UAH 180M (approx. USD 6.5M)
- there are a number of technical requirements for the software.
Only a legal entity that is registered in Ukraine can obtain one of these licenses. At the same time, a number of requirements and restrictions are imposed on the legal entity itself, in particular:
- its authorized capital must be formed in cash in an amount not less than UAH 30M;
- its managers, chief accountant, owners of a major share and ultimate beneficiaries must have an impeccable business reputation and may not be citizens of the Russian Federation;
- its participants (founders, shareholders) cannot be legal entities registered in the countries on the FATF special list;
- its participants (shareholders) cannot be ultimate beneficiaries of a Russian resident entity;
- it cannot have, directly or indirectly, any subsidiaries in another country.
Online gambling business in Ukraine is possible only with the use of certified software (online system), which will record the information. The license itself gives the right to accept bets from players, who are located both in Ukraine and abroad. It is necessary to use a website (including mobile applications) with a domain name in the domain zone UA. At the same time, in order to obtain the right to a domain name in the UA domain zone it is necessary to register a trademark in advance.
In addition to the established license fee it is also necessary to take into account the cost of a special bank deposit or bank guarantee in the amount of UAH 43,2M. (as of 2021).