The Ukrainian gambling industry is on the brink of significant changes following the approval of a new bill by MPs, which includes a range of amendments aiming to overhaul the regulatory framework.
Initially introduced earlier this year, the bill was first read in April. It proposed an outright ban on advertising and introduced stricter licensing requirements. However, after further refinement, Ukraine has decided to relax some of these stringent proposals.
The second reading was approved by MPs on December 4, and the bill was subsequently ratified by the chairperson of the Ukrainian Parliament, the Verkhovna Rada, earlier this week. The legislation is now awaiting approval from President Volodymyr Zelenskyy.
The bill permits TV advertising restricted to the late-night hours between 11 p.m. and 6 a.m., while online advertisements are allowed but cannot be directed at individuals under 21. Sponsorship opportunities will continue to be available for market operators as well.
A notable change is the dissolution of the current Gambling Commission in favor of a new state-run agency. This agency will have the power to block illegal gambling websites and impose restrictions on certain types of games.
Additionally, the draft law proposes a B2B licensing framework for international companies, opens the lottery license to competition from foreign operators, and mandates that all payments be processed exclusively through banks.
Dmitry Hotsyn, head of the CIS desk and a senior consultant at 4H Agency, commented on these legislative updates in a conversation with EGR. He noted, “These are the first substantial legislative adjustments in four years since the establishment of Ukraine’s legal gambling market. Although final implementation depends on the President’s signature, this step is largely procedural.”
Hotsyn emphasized that the draft law aims to address existing market challenges overlooked during the initial legalization process, which should enhance the market’s appeal to legal operators.
Nonetheless, Hotsyn pointed out that unresolved tax issues continue to hinder the market’s growth in Ukraine. “From the outset, we’ve been observing this jurisdiction and can state that taxation remains an unsolved matter. The Ukrainian tax code isn’t aligned with business realities, leading to frequent disputes with various government bodies over tax payments,” he explained.
He mentioned that although amendments to the Tax Code were discussed during the drafting process, they were omitted from the final version. Hotsyn expressed hope that lawmakers will address the taxation concerns soon.
For further details, you can read the original article titled “Ukraine regulatory shake-up sent to President Zelenskyy for approval” on EGR Intel.