Gambling business in Ukraine: How to start your own casino

The re-regulation of gambling in Ukraine after ten years of prohibition was one of the biggest and most closely watched stories in the industry. Draft law No. 2285-d was introduced into the Ukrainian parliament (also known as the Verkhovna Rada) in 2019. A year later, the bill was finally passed, re-legalizing gambling in Ukraine.

Now that gambling in Ukraine is completely legal and regulated, let’s talk about how to start a gambling business and open your own casino in this promising market.

Requirements for land-based casinos, slot machine halls, and retail betting shops

Operating land-based iGaming entities in Ukraine has some specific requirements and regulations.

When it comes to running a land-based casino in Ukraine, there are some requirements:

• A brick-and-mortar casino in Ukraine may only operate in a 5-star hotel with either 150 rooms (in Kyiv) or 100 rooms (in the rest of the country).
• Gambling areas must be at least 500 square meters.
• The minimum necessary equipment includes 10 gaming tables, with two roulette tables and 50 slot machines (in cities with a population of more than 500,000 people), and five gaming tables, with one roulette and 20 slot machines (in small towns and rural areas).

To operate a slot machine hall, you need to know that:

• Halls are allowed in hotels with 3 stars and more, with at least 50 rooms (in Kyiv) or 25 rooms (in the rest of the country).
• The hall should have an area of no less than 300 square meters.
• The hall must have a minimum of 50 slot machines.

Retail sports betting shop operators must remember that:

• Betting shops should be located in hotels with 3 or more stars, with at least 50 rooms (in Kyiv) or 25 rooms (in the rest of the country).
• Shops offering horserace betting should be located at racetracks.
• The betting room should have an area of no less than 50 square meters.

Moreover, lawyers specializing in the gambling industry play a crucial role in supporting land-based casinos by ensuring compliance with all regulations.

License fees

To operate a land-based gambling business in Ukraine, you must obtain a license.

To be eligible to apply for a gambling license, potential licensees will be required to have a legal address in Ukraine. Companies will have to supply tax, payment, and accounting information, as well as the identities of shareholders and the ultimate beneficiary of the business.

The cost varies: license fees for land-based casinos are $9.2 million in Kyiv and $4.6 million in other cities; for slot machine halls, they cost approximately $1.62 million; and for betting, approximately $6.5 million. Licensees can operate both offline and online.

As of October 2024, the Ukrainian government has issued 10 licenses for land-based casinos, 15 for slot machine halls, and 1 to a land-based bookmaker.

Taxes

Land-based casinos and bookmakers are taxed at 18% of their GGR, while slot machine halls are taxed at 10%. In addition, all operators are subject to a corporate income tax of 18%, which applies to companies across all industries.

Requirements for online gambling businesses

The demands for running an online gambling business are different from a land-based one:

• Companies are required to be registered in Ukraine.
• Operators must provide documents specifying the domain name of the online casino or betting site (should be registered with .UA domain name and added to a special register by the Ukrainian regulator, KRAIL).
• The software has to be connected to an online monitoring system, operate following international standards and certifications, and correspond to technical documents.
• An operator must have UAH 30 million of authorized capital and make a bank deposit of UAH 34 million.

License fees

To apply for an online gambling license, operators must submit documents detailing the company’s legal address, tax records, and payment and accounting information, as well as information about shareholders and the ultimate beneficiary of the business.

The cost of a gambling license in Ukraine for an online casino is UAH 39 million (approximately $1.4 million). It is issued for a period of 5 years.

As for betting sites, the cost of the license is UAH 180 million (approximately $6.5 million). Issued for 5 years, it allows the holder to organize both land-based and online betting.

Taxes

Both online casinos and betting businesses in Ukraine are taxed at 18% of GGR. As with land-based entities, operators must pay an additional corporate income tax of 18%.

Moreover, players’ winnings are subject to an 18% tax, and they must also pay a 1.5% military fee, which is applied to all types of income.

Process

Owning an online casino opens a wide array of possibilities for an operator.

Without being tied to a specific location, operators can expand their reach beyond Ukraine and target a global audience. By adhering to local regulations and conducting thorough market research, they can successfully operate in multiple regions worldwide.

Additionally, online casinos benefit from lower overhead costs compared to land-based establishments, as they don't require physical infrastructure. They also don’t have to hire as much staff as land-based casinos do.

With the right licensing, payment solutions, and marketing strategies, operators can scale their business and compete in the international iGaming arena.

However, operators shouldn’t forget about the possible threats facing their business. When it comes to your business’s security, don’t leave it up to luck — learn how to protect your casino or sportsbook from fraud.

How much does it cost to open your own casino in Ukraine? Land-based and online casino costs and conditions compared

So now that we’ve covered requirements for opening land-based and online gambling businesses in Ukraine, we can compare the costs and see which one is more suitable for your budget.

Look at the table below and see it for yourself.

Step-by-step instructions for opening an online and land-based casino in Ukraine

Now let’s get down to business – how to open your own online and/or offline casino in Ukraine.

We will guide you through both options, covering their shared fundamentals, as well as the unique considerations each requires.

Step 1. Business plan

A well-crafted business plan is essential — not only for daily operations but also for securing a license and attracting potential investors.

For your online casino, you’ll need to choose a business model first.

There are some of them:

• Real-money models, which involve direct transactions from customers.
• Cryptocurrency-focused models, which focus on cryptocurrency payments.
• Social casino models, which offer free-to-play games with optional in-app purchases for virtual goods.
• Free models (Freemium) models, which offer basic services for free, only charging for additional services.

You can learn more information about business models for online casinos from our article.

Running both online and land-based casinos requires creating a business plan.

To help yourself with this, you can use the business model canvas, one of the simplest and most popular tools for visually mapping out your business model. It’s a template divided into nine key sections, allowing you to organize each aspect of your business for quick and easy reference.

It is important to remember local Ukrainian regulations while planning to launch your iGaming business in this country. While creating your business plan, don’t forget to consult with an experienced lawyer.

By presenting a clear and strategic approach, you increase your chances of obtaining the significant funding required for your initial investment.

Step 2. Location

The main difference between an online and a land-based casino is that the second one requires a fixed location.

One thing to keep in mind is that land-based casinos must adhere to specific location requirements. In Ukraine, a casino can only operate in a 5-star hotel with either 150 rooms (in Kyiv) or 100 rooms (in other cities).

Online casinos, on the other hand, obviously don’t share the same problem. Without being tied to a specific location, an operator can target a global audience. Moreover, starting an online project doesn’t require nearly as much money and resources.

Step 3. Software

Choosing a software provider for your online casino platform is a big step to make.

It is crucial for a good platform to have a clear navigation, interactive design, effective security tools, and business modules.

With a Turnkey online casino solution from Slotegrator, you’ll get a comprehensive technical solution, which includes everything you need for a successful iGaming business.

Step 4. Payment methods

Selecting optimal payment methods for an online casino is essential, as it directly influences the business's success.

Offering the right payment options facilitates smooth, secure transactions and greatly improves the user experience, simplifying the deposit and withdrawal process for players.

Step 5. Advertising strategy

No business can develop properly without an efficient marketing strategy.

There are a range of tried and true methods for promoting your online casino. The only limit is local regulations. In Ukraine, advertising restrictions include no ads during the daytime, no targeting minors, no presenting gambling as a source of income and no displaying military symbols.

It can be tricky to adhere to all the relevant regulations when promoting your business. That is why we’ve created a guide on how to attract players without breaking the law.

Additionally, alternative promotional methods, such as affiliate partnerships and bonus systems, are among the most popular and effective strategies for boosting a gambling business. These approaches not only attract new players but also encourage engagement and loyalty, helping to drive long-term growth.

Step 6. Customer service

You can’t have good service without quick service.

The more timely and responsive your customer service is, the better your odds are of retaining your players, as well as developing a good reputation throughout the sector. Unfortunately, something can always go wrong, but first-class customer service is a reliable method of handling any hiccups.

Clients and casino representatives most often resolve problematic situations face-to-face, so building good relationships with your players is essential. Pay attention to the communication skills of your casino staff. They should be trained in all of the most common problems players have, exhibit professionalism at all times, and — most importantly — speak the players’ native language.

Conclusion

We’ve shared a comprehensive guide on launching your own gambling business in Ukraine, drawing on our years of expertise in the industry.

However, we understand that navigating the complexities of licensing, compliance, and operational setup can feel overwhelming, and even small missteps can incur growing costs in terms of both time and money.

At Slotegrator, we’re here to help you get your project off the ground smoothly, saving you time, reducing costs, and guiding you around common obstacles. Our team has the expertise to help with launching a project from ground up or enhance an existing venture.