The market for online slot machines in hryvnia in Ukraine: who is first in line for a license

The current situation around the world, pandemic related, significantly changed the planned course of events in Ukraine. But despite the difficulties that arose, the immediate solution of primary problems, no one canceled the already launched mechanism for further legalization of the gambling business. Recently, planned news appeared in the Ukrainian gambling industry.

Will the economic situation in the country affect the tax burden of activities related to online slot machines?

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At an extraordinary meeting of the Verkhovna Rada of Ukraine, the possibility of increasing taxes by 1,5 times in favor of the Ministry of Health was discussed, and it was also proposed to increase the percentage of contributions to the country's Pension Fund to support the least protected segments of the population. But such changes will not affect the gambling business.

Perhaps the deputies listened to the opinion of experts (such as the director of the Leviathan analytical group, Nikolai Melnyk), who had previously stated that the proposed tax plan for the gambling market in general and Ukrainian slot machines for money was significantly overstated.

A good sign remains that revenues to the country’s budget in 2020 from this segment of the economy are not excluded. That is, the process of legalization of establishments in which they will operate slot machines online for money remains open and there is hope for a speedy final decision on this issue.

Not long ago, the head of the budget committee, Yuri Aristov, gave an interview to a Ukrainian news agency specializing in financial, economic and political news in Ukraine. He emphasized that regional governors are interested in speeding up the process of considering the Bill in the second reading. Since, interest in investing in newly launched businesses is expected to increase, and officials are ready to address issues of integration of the gambling industry.

The lottery market as a monopoly and restriction of bookmaker activities

The reasons for the slowdown in the legalization of gambling, casinos and slot machines in Ukraine lie not only in today’s problems associated with COVID-19. Anton Kuchukhidze (a specialist in international politics) expressed the opinion that the president’s effective idea to legalize the gambling business is simply destroyed by the Finance Committee.

Analyzing his own sources of information, the expert stated that for the sake of profit from the lottery business, preparations are being made with a table of amendments that are proposed in the Bill for further consideration in the second reading. Thus, some deputies propose to exclude the lottery from the list of gambling entertainment, casinos and slot machines for real money in Ukraine and include it in a separate Law.

Viktor Skarshevsky (economist) made approximately the same conclusions, who suggests that the timing of the adoption of the project is deliberately delayed in order to monopolize the lottery market by individuals. He clarifies that attempts are being made to derive the concept of “lottery” from Bill No. 2285-d. It is also proposed to grant this segment the rights to conduct bookmaking activities. This may lead to the return of the old scheme, when the operation of slot machines in Ukraine was covered with the “Lottery” sign.

Skarshevsky clarifies that the current version of the draft Law differs from European norms, since in Europe bookmakers offer bets on any legal events, and not just on sports classics. That is, the proposed rules reduce the scope of the intended audience of bookmakers (only for those located in the country), minimizing the possibility of bookmakers entering the international market. Such rules limit the growth of shares during a crisis period.

The attitude of Ukrainians towards slot machines for real money

At the end of last year, residents of Ukraine were wary and distrustful of the idea of ​​legalizing the gaming business. Thus, the total number of negatively disposed people exceeded 60%. Only 11% were in favor of opening gambling zones without restrictions and 27% were in favor of sites in strictly designated areas.

Now the situation has changed a little. The sociological group “Rating” conducted a survey in early April. His results:

Comparing the indicators, one can note a five percent increase in the loyalty of the population to the opening of casinos and slot machines in Ukraine in hryvnia. Perhaps this is due to an understanding of the deplorable situation of our economy and the need to find various opportunities to fill the budget.

Who is ready to buy the license?

The candidates for priority acquisition of licenses are already known. So, Atis Zakharans (general manager of Kharkiv Palas) is ready to open a casino. He stated that a project for the necessary work has long been developed and the only thing that matters is the adoption of the relevant Law. Elena Varivoda (regional director of Vertex Hotel Group) speaks less specifically. She does not specify the type of gambling site she plans to open.

These are the first real representatives of the Ukrainian gambling industry, who can start working in the country’s gambling market today.

Author's source: spins.com.ua