Reports UKRAINE - MARKET REPORT
prohibition law at the time and some 100,000 gaming halls were shut down. Te law provided for a temporary ban on gambling until legislation for special gambling zones was adopted.
Initially, the Prohibition Law established a three month period to enable the Cabinet of Ministers to draft a new legislation for gambling zones. However, due to the unstable political climate in Ukraine this draft law ‘On Gambling Business in Ukraine No. 2156’ wasn’t released until 2013.
Something was required. Essentially, the ban on gambling during that time had merely shifted everything underground. Providers moved their servers abroad and offered online gambling services to Ukraine players, whilst the majority of casinos and slot halls underwent a re-fit and renamed themselves ‘internet cafes’ or ‘video lottery clubs’, providing access to online gambling resources or regular slot machines under the guise of video lottery vending machines.
Te draft law, however, failed to gain sufficient support. In 2017, the government issued a letter of intent to the IMF outlining a plan to raise tax revenues by legalising the gambling industry. Te idea was to enact economic reforms to qualify for around US$18bn in IMF financial assistance, but this also failed to restart the gambling industry.
In September 2019, the President ordered parliament to introduce a draft law to regulate gambling in a bid to revitalise the economy. His plan was to legalise casinos in five star resorts and boost the tourism sector near the Black Sea.
He announced he would start enforcing anti- gambling laws and Ukrainian courts ordered ISPs to block unlicensed gaming sites, whilst in early January 2020 more than 900 gambling establishments were shut down for illegal operations according the Office of the Prosecutor General. Some 437 criminal proceedings have been issued and 11,600 units of gaming equipment have been seized.
In October 2019, Oleg Marusyak introduced the 2285-D bill, as one of six alternatives to the reforms submitted by the Servant of the People Party-led government. It was rejected on the first reading, but after a few amendments the bill was approved in January 2020 and after several amendments and delays, the law was finally adopted in July after a landslide 248-95 approval in parliament and was signed by President Zelensky in August.
Te law ‘On State Regulation of Activities Related to the Organisation and Conduct of Gambling No. 768-IX’ gave the go-ahead for the following types of gambling activities:
P48 WIRE / PULSE / INSIGHT / REPORTS
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