Despite all the circumstances and obstacles, Ukraine is still one of the prominent players on the iGaming scene. Read this article to discover how the attitude towards gambling in Ukraine changed throughout the years, resulting in significant legislation changes. You will also find out what are the requirements for opening your own gambling business in this country.
Long story short, Ukraine has an uneasy history with gambling.
Back in the 90s, gambling was legal in Ukraine, but not particularly well-regulated. The country gained independence after the dissolution of the Soviet Union, and like many other markets at the time, casinos and slot machine halls were free to operate almost completely unfettered.
Little by little, the government tried to impose regulations: in 1996, the new Law On Patents for Certain Enterprises instructed operators to purchase a patent from the government that allowed them to stay open, and in 2002 the Cabinet of Ministers discussed an automatic control system that would track movements of all funds in the casino business.
Being focused mostly on taxation, the focus changed dramatically after a fatal fire in Dnipro in 2009. Public discourse shifted towards problem gambling and player safety — both mental and physical.
After some discussion, Ukrainian legislators chose a radical way to address the problems. They anonymously moved to ban all gambling enterprises in the country: casinos and sports betting, both online and land-based.
New Ukraine — new legislation
So, is gambling legal in Ukraine now? All forms of gambling have been illegal for a decade. In 2019, Ukrainian president Volodymyr Zelenskyy asked the government to find ways to legalize the industry. A year later, on July 14, 2020, the Bill 2285-D about gambling regulation was finally passed.
New legislation introduced the licensing regime for online casinos, land-based venues for gambling and betting, lotteries, and testing laboratories that offer services to the industry.
The implementation and oversight of the new law are handled by KRAIL, at that time the newly created Regulatory Commission on Gambling and Lotteries.
A big concern for many investors was that while legal operators are burdened by compliance-related expenses, like newer slot machines, KYC, and monitoring systems; the black market — which suffers no such overhead — will continue to compete and cut into the profits of the legitimate business. So far, Ukrainian authorities have tried to prove the skeptics wrong, constantly clocking more and more illegal gambling websites.
Land-based venues that try to stay off the grid also became targets for authorities. For example, in June 2021, a series of illegal gaming halls disguised as stores or kiosks were discovered and fined.
Taxation
The popularity of gambling and betting in Ukraine has risen despite the hardships and all the skepticism of the critics. The numbers speak for themselves: in November 2023 alone gaming business paid UAH 2.26 billion in taxes, which is 10 times more than the entire year of 2021 and 3 times more than the entire year of 2022.
In 2024 the tendency of growth continues to develop, resulting in UAH 11.7 billion paid in taxes to the state budget in the first eight months of the year. It leaves us with a tremendous growth of roughly 57.4 times than pre-war levels in 2021, not counting that the year is not over yet.
Casinos and bookmakers are taxed 18% of GGR, gambling halls 10%, and lotteries 30%. All operators also pay a corporate income tax of 18% that applies to all companies regardless of industry.
Players’ winnings are also taxed at a rate of 18%. Ukrainian players also pay an additional military fee of 1.5% on their winning, as it applies to all sorts of income.
Interestingly, the gambling industry is one of the best contributors to the country's economy. Since its relegalization in 2020, approximately UAH 22.6 billion in taxes has already been deposited into the state treasury. These figures show that restoring the domestic casino market was certainly a good idea to implement.
Advertising
Advertising restrictions in Ukraine are in line with the European standards:
- Advertising is prohibited in the daytime
- Responsible gambling warnings should be displayed
- Gambling should not be presented as a guaranteed or easy source of income
- Ads can't target children or other vulnerable groups, and from 2024 they can’t contain any military symbols.
Players and social responsibility
Ukrainian legislation places significant emphasis on social responsibility and the prevention of gambling addiction.
In June 2021, KRAIL implemented a national registry of self-excluded and excluded players, aimed at protecting players who exhibit problematic behavior. A period of exclusion can last anywhere from half a year to three years. A player can be put on the list voluntarily, by court order, or at the request of a close relative or legal representative.
Additionally, the new law has recently been enacted. On April 20, 2024, Volodymyr Zelenskyy signed the decree to implement the decision of the National Security and Defense Council of Ukraine “On countering the negative consequences of the online gambling operation”.
The new restrictions prohibit using the symbols of the Armed Forces of Ukraine, and other military formations in gambling advertisements. During martial law, military personnel are prohibited from participating in gambling. This will be monitored by entering their personal data into a special registry controlled by the Ukrainian government.
This measure aims to fight ludomania among Ukrainian military forces, which has become a huge problem since the beginning of the full-scale Russian invasion.
Also, the Cabinet of Ministers should oblige the iGaming operators to set a limit on the player's spending per game with the possibility of changing it no more than once a month. Among the new government's responsibilities are preventing players from registering multiple accounts, limiting continuous playtime, and enforcing maximum weekly gaming hours.
According to the new law, The National Bank of Ukraine should develop recommendations for banks to blick payments with credit funds to the accounts of gambling organizers.
Moreover, the Ministry of Digital Transformation was tasked with negotiating with Apple and Google to ban unlicensed gambling apps in the “UA” zone of their app stores. In July it was reported, that after the Ministry's appeals, Apple has blocked 50 unauthorized gambling apps.
Gambling regulation system
There are several systems and regulatory bodies that monitor the gambling market in Ukraine.
The Gambling Act of 2020 includes the establishment of a central monitoring system that allows the regulator to connect to gaming equipment and monitor all gaming transactions in real time. That is how the project of State Online Monitoring System (SOMS) appeared. Its main purpose is to ensure compliance with licensing terms and facilitate taxation by providing oversight of all gambling operations. At the moment the project is still in development.
In Ukraine casinos and betting sites are controlled by Commission for the Regulation of Gambling and Lotteries (KRAIL or CRGL) – the official regulatory body overseeing the gambling industry. It's responsible for licensing operators, enforcing compliance with gambling laws, and ensuring the industry operates within legal frameworks. KRAIL manages the licensing process, revokes licenses for non-compliance, and implements regulations to safeguard against illegal gambling activities.
However, recent developments may change this structure. On April 24, 2024, the Verkhovna Rada voted to submit draft law 9256d. This law would lead to the liquidation of KRAIL, with its responsibilities being redistributed to other governmental bodies, including the Ministry of Digital Transformation.
This potential change could significantly alter the regulatory landscape for gambling in Ukraine, potentially affecting both the role of KRAIL and the implementation of SOMS.
Ukrainian gambling market
In 2020, the land-based and online gambling market in Ukraine was reborn.
As of October 2024, 10 land-based casinos, 15 slot machine halls, 26 online casinos, 3 online poker establishments, 6 online bookmakers, 1 land-based bookmaker, and 35 B2B iGaming businesses received a government gambling license, which allows them to operate on the territory of Ukraine.
After the COVID pandemic, the interest in online casinos in Ukraine has increased. The convenience and accessibility caused the rise in popularity of such platforms. Alongside online casinos, sports betting has emerged as a favored activity. Many Ukrainians engage in betting on both local and international sports events.
Despite people no longer needing to turn to the black market for entertainment, the illegal gambling market in Ukraine remains prevalent. Anton Kuchukhidze, chairman of the Ukrainian Gambling Council, claims, that 1,200 illegal gambling sites are operating in Ukraine, which of course does not compare to the number of legal casinos.
Why do people still choose the black market? The answer is quite simple: anonymity, profitability, diversity. Illegal sites take payments in cryptocurrencies, without a need in identification. The odds are also often more profitable, as the establishment doesn’t pay any taxes. And of course, they can offer much more games than the licensed sites, as they don’t need to pass software certification checks. However, all these seemingly positive aspects leave people deceived and unprotected.
This sad chain ends with widespread gambling addiction and huge underpayment of taxes to the country's treasury. As mentioned above, many measures are currently being taken in Ukraine to prevent gambling addiction among the population, including vulnerable groups. The government is also constantly monitoring tax evasion, which most recently led to the seizure of the bank account, containing UAH 700 million, of one of the country's largest casinos.
Despite these and other multiple challenging events, the legal land-based and online gambling market size in Ukraine continues to grow and help the country economically.
Gambling operators
Ukraine is a state with a booming gambling industry, so no wonder why many people consider having a business in this niche. The basic requirements for becoming an official gambling operator in Ukraine are:
- The status of a legal entity that is registered in Ukraine
- Authorized startup capital of UAH 30 million (approximately $1 million)
- Operators must have a security deposit or bank guarantee in the amount of UAH 34 million (approximately $1.2 million)
- Must not be directly or indirectly controlled by citizens of the aggressor state (currently the Russian Federation)
- Must not be a bank, other financial institution, or non-governmental organization
Types of gambling
The Gambling Act allows the following types of gambling activities to be organized within the territory of Ukraine:
- Land-based and online casino games, including table games, offline poker, and other games
- Betting in land-based betting shops and on online platforms (including real-life events such as sports matches and horse races but excluding virtual events)
- Slot machines (in gaming halls)
- Online poker
Land-based casinos (table games and slot machines)
Each license entitles the holder to operate a single casino. License fees are $9.2 million in Kyiv and $4.6 million in other cities.
Gambling will be allowed only in designated gambling zones:
- In Kyiv — 5-star hotels with at least 150 rooms
- In other cities — 5-star hotels with at least 100 rooms
- Countryside recreation zones with an area of 10,000 m²
- Special gambling zones established by the government (in Ukraine, there can be a maximum of five special gambling zones created; the casino area should be no less than 10,000 square meters; it should contain a minimum of 20 gaming tables (including four roulette tables) and 250 slot machines)
- The casino should have an area of no less than 500 m²
- The minimum number of employees is 50 people
Minimum necessary equipment:
- In cities with a population of more than 500 thousand people — 10 gaming tables (including two roulette tables) and 50 slot machines
- In small towns and rural areas — five gaming tables (including one roulette) and 20 slot machines
- The use of slot machines produced before 2019 is prohibited
- The casino must utilize certified gambling equipment connected to the State System of Online Monitoring
Online casino
The online casino market in Ukraine continues to grow and many people are interested in running this business. For their businesses, operators are required to obtain online casino licenses. The cost is UAH 39 million (approximately $1.4 million) for a validity period of 5 years.
The main requirements:
- Authorized capital of UAH 30 million
- Bank deposit of UAH 34 million
- Certified gambling software that records all transactions and complies with technical standards set by regulatory authorities
- The website used for online gambling must be registered with a .UA domain name that are added to a special register by the Ukrainian regulator.
Betting
In Ukraine betting sites are extremely popular. To run one of them, an operator should obtain a license and pay a fee of UAH 180 million (approximately $6.5 million) for a validity period of 5 years. One license allows the holder to organize both land-based and online betting.
The main requirements:
Land-based betting can only be organized in special gambling zones:
- In Kyiv — 3-,4-, and 5-star hotels with at least 50 rooms
- In other cities — 3-,4-, and 5-star hotels with at least 25 rooms
- At racetracks (for horserace betting)
- The betting room should have an area of no less than 50 m²
Online betting can only be conducted via mobile applications and/or websites with a .UA domain name that are added to a special register by the Ukrainian regulator.
Slot machines
Operators must obtain a land-based slot machine hall license. A single license enables the holder to operate up to 250 slot machines. A license fee is UAH 45 million (approximately $1.62 million).
Only in special gambling zones:
- In Kyiv — 3-, 4- and 5-star hotels with at least 50 rooms
- In other cities — 3-, 4- and 5-star hotels with at least 25 rooms
- The slot machine hall should have an area of no less than 300 m² and contain a minimum of 50 slot machines.
Online poker
Obtaining a license is a must for poker operators as well. The license fee is UAH 30 million (approximately $1 million) for a validity period of 5 years.
The main requirements:
- Online poker can only be conducted via mobile applications and/or websites with a .UA domain name that are listed on a special register maintained by the Ukrainian regulator.
- Authorized capital of at least UAH 30 million
- Bank deposit of UAH 34 million
Contact our team to learn more about gambling in Ukraine and get a free consultation about iGaming markets across the globe and license acquisition.
