Ukraine Restricts Access to Offshore Gambling Sites Based in Russia
President Volodymyr Zelensky of Ukraine pledged on Monday that their troops will not withdraw from Bakhmut, a ravaged city in Eastern Ukraine that Russian forces have been trying to capture for over half a year. Although it doesn't significantly impact the on-going war, Ukraine revealed this week that they have taken measures to bar Russian businesses from accessing the country electronically through online channels.
Representatives from Ukraine's Security Service, in conjunction with the country's Gambling Council, stated on Monday that hundreds of illegal online casino websites operating from abroad have been successfully blocked. It is said that Internet users in Ukraine can no longer access these unregulated and unlawful iGaming platforms.
Zelensky lifted the ban on brick-and-mortar casinos in 2020. Only one casino has opened since then - the Billionaire's Casino in Kyiv, inside The InterContinental Hotel. This luxurious, boutique gaming room features approximately 50 slot machines and 16 table games.
Zelensky's gambling law only permits casinos within hotels, and the minimum age to gamble is 22 years old.
The COVID-19 pandemic, followed by Russia's invasion of Ukraine, has halted further gambling advancements. After Russia started invading Ukraine a year ago, Zelensky ordered all in-person gambling, including small poker clubs, to be halted. These gambling activities remain suspended indefinitely.
iGaming Crackdown
Zelensky's liberalization of gambling in 2020 also permitted gambling online. The law mandates that iGaming operators acquire an internet gambling and betting license from the Ukrainian Commission for the Regulation of Gambling and Lotteries and comply with all relevant regulations.
To be eligible, an iGaming company must not be owned or controlled by a Russian company or citizen. The entity must also not own shares of any Russian company or have significant shareholders residing in a jurisdiction on the Group of Seven’s Financial Action Task Force black or grey lists. Countries on those lists include North Korea, Iran, and the United Arab Emirates.
Following testing to verify compliance, Ukraine requires a one-time payment of approximately $1.3 million for an iGaming license. Gross gaming revenues collected by online casinos are subject to an 18% tax.
Despite its regulated online gaming industry, Ukrainian officials have acknowledged that since 2020, rogue offshore sites have continued to target the country. Many of these illegal platforms are operating from Russia.
Protecting the Legal Market
Ukraine's recent action against unlawful offshore gaming websites is to ensure that the country's land-based casinos and legal iGaming platforms aren't negatively affected by unauthorized operators.
However, the Ukrainian Gambling & Betting Association claims that the country isn't helping its members by recently declaring that tax payments and other financial obligations should not be postponed, as requested. Ukraine's Cabinet of Ministers stated last month that the Billionaire's Casino and legal iGaming sites must pay their duties for 2022 before April.
Companies that invested in the legal land segment have not even begun to recuperate their investment, and they remain closed today,” said Mykola Melnyk, a spokesperson for the Gambling & Betting Association. “It's extremely painful that the changes initiated by the Cabinet of Ministers will, unfortunately, affect investments, which are already very difficult to bring to the Ukrainian market.”
Russia's invasion of Ukraine has resulted in over 42K deaths, with an additional 15K people missing. The estimated property damage of the war is more than $350 billion.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage