Ukraine Issues First Online Casino License
In November 2019, Ukraine made significant changes to their gambling laws, legalizing online gambling, sports betting, and land-based casinos in hotels. This was followed by months of discussions about the best way to regulate the industry. Now, over a year later, the first license has been awarded - to Cosmolot owner Spaceiks. This marks a crucial milestone for the company.
Spaceiks Obtains License after Four Attempts
The Ukrainian Commission for the Regulation of Gambling and Lotteries (KRAIL) awarded the first license to Spaceiks, a company that owns the Cosmolot brand, which was previously owned by Ukraine's national lottery. The license was granted after a series of attempts where Spaceiks' documents were rejected due to errors.
The license cost Spaceiks roughly 1.2 million euros, and they were granted a five-year license. Prior to receiving the license, KRAIL asked for more information about Spaceiks' ownership structure to ensure they met the expectations for Ukrainian licensees.
Restrictions for Licensees
The new gambling law contains several restrictions. Russians are prohibited from acting as shareholders or Ultimate Beneficial Owners (UBO) of companies eligible for a license. Only legal entities registered in Ukraine can obtain one. The owner of Spaceiks, Serhii Volodymyrovich Potapov, is based in the Zaporizhzhia region.
Potapov, the Managing Director of Spaceiks and Cosmolot, expressed excitement about the start of legalized gambling after years of waiting. He also praised the Commission for its efficient work.
Gambling was banned in Ukraine after a 2009 fire in a Dnipropetrovsk casino that killed nine people. Ukraine has been attempting to legalize gambling again since 2015 but was delayed due to global political tensions. In recent years, Ukraine has taken a more progressive stance on gambling, especially regarding the internet.
The new gambling law covers online gambling, sports betting, gaming arcades, and land-based casinos in hotels. The amendment took effect in August 2020 after being approved by the Ukrainian parliament, the Verkhovna Rada, with a 248:95 vote. They also passed the bill in the first reading in January.
Parimatch Left Waiting for License
Eastern European operator Parimatch had high hopes for obtaining the first Ukrainian license but was left empty-handed for now. In August, Parimatch CEO Sergey Portnov congratulated President Zelensky for keeping his promise to legalize gambling in Ukraine. However, Parimatch is still waiting to see if they'll receive a license.
License Fees Set, but Tax Model Unclear
The fees for the licenses have been set. Online casinos pay around 1.2 million euros, online sports betting is considerably more expensive at 2 million euros, online poker costs approximately 730,000 euros, and casinos in Kiev cost just over 4 million euros.
However, the tax model remains unclear. In June, Oleg Marusyak presented a tax bill (2713-D) that suggested taxes on gross gaming revenue: 5% for bookmakers, 10% for online casino games and lotteries, and 12.5% for slot machines. Four other models are also being reviewed.
An unusual alternative proposed by politician Artem Dubnov involves abolishing specific gambling taxes, making the government earn money through license fees and regular business and income taxes. New proposals can still be submitted.
Paraphrased using simpler, more informal language:
In 2019, Ukraine legalized online gambling, sports betting, and land-based casinos. After a year of debating how to regulate the industry, Spaceiks became the first company to receive a license. The license holder is Cosmolot owner Spaceiks, which had applied multiple times due to document errors. They'll now pay 1.2 million euros and have a five-year license.
Restrictions in the gambling law include Russians not being allowed as investors or 'Ultimate Beneficial Owners.' Only Ukrainian companies can get a license. The owner of Spaceiks, Serhii Potapov, saw this as a positive step.
Gambling was prohibited in Ukraine since 2009 because of a fatal fire in a Dnipropetrovsk casino. Ukrainians have been trying to legalize it since 2015 but were slowed down by global politics. They've recently become more open to gambling, especially internet-based activities.
The new gambling law covers all these areas. It became effective in August 2020 after the Verkhovna Rada approved it with a 248:95 vote. They had also passed the bill at the first reading in January.
Eastern European operator Parimatch wanted to be the first licensed but hasn't received it yet. In August, their CEO, Sergey Portnov, said President Zelensky kept his promise to legalize gambling. They'll continue waiting to find out if they'll receive a license.
The license fees have been agreed upon: €1.2 million for online casinos, €2 million for sports betting, €730,000 for online poker, and €4 million for casinos in Kiev. However, the tax model is still uncertain. In June, Oleg Marusyak proposed taxes on gross gaming revenue: 5% for bookmakers, 10% for online games and lotteries, and 12.5% for slot machines. He also discussed four other options.
Politician Artem Dubnov suggested a different approach: completely eliminating gambling taxes. In this case, the government would only earn money through license fees and other taxes. More unusual proposals could also be considered.
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Source: www.onlinecasinosdeutschland.com
