Events From the Ukrainian Gambling Market. Weekly News Digest
What options for taxation of gambling business in Ukraine were proposed by the deputies? When can the state budget receive money for the first licenses? What decisions did the gambling regulator make at the latest meeting, and who became the new member of the collegial body? Read the main news from the Ukrainian gambling market in the weekly UGW 2021 digest.
Deputies proposed five bills on taxation of gambling business in Ukraine
Members of the Servant of the People faction have submitted for consideration five bills on amendments to the Tax Code of Ukraine that relate to taxation of income from gambling activities.
In all five bills, deputies proposed to abolish the military fee and the personal income tax on gambling winnings. Thus, all documents propose a standard income tax of 18% after the financial results of the operators' activities are determined.
The key differences feature the size of the special tax rate on the gambling income of operators from different types of activities. For example, joint project by Oleh Marusiak and Marian Zablotskiy would fix the rate at 10% for all areas of the gambling business.
In the bill presented separately by Marusiak, the 10% rate remains for organizers of lotteries, online casinos, and online poker games. The tax rate on gambling income received in land-based casinos and slot machine halls is 12.5% and 5% for betting operators. However, the document also states that the tax on gambling income should be absent until 2024.
The bill proposed by Oleksandr Dubinskyi suggests creating a single rate of 25% for all types of gambling activities. Thus, same as in the project of Dmytro Natalukha, it indicates that tax on income from the organization and conduct of gambling activities should be removed, with only the usual tax for profit preserved before the state system of online monitoring is launched.
Natalukha’s draft law suggests to distribute rates as follows: betting business – 7.5%, lottery organizations – 22%, online and offline casinos – 12.5%.
In the bill submitted by Artem Dubnov, the tax on gambling income has been abolished, with only the standard 18% tax retained.
Draft resolution on the approval of licensing conditions was adopted at the Meeting of the gambling regulator
On December 17, members of the Commission for Regulation of Gambling and Lotteries gathered to agree on a number of issues. First of all, they approved the strategic goals of the collegial body for 2021-2023 and a plan for further activities. They also recognized the need to amend the composition of the Expert Council.
Regulator has confirmed a draft government decree on the approval of licensing conditions for the conduct and organization of gambling, except for lotteries. The amendments to the document, proposed by lottery operators, were considered unacceptable by the representatives of the commission and council.
Among other things, the members of the gambling regulator approved the procedure for issuing permits for gambling establishments that comply with all the standards specified in the relevant law.
Members of the Expert Council also discussed the issue of technical regulations for gambling equipment.
License payments from operators of gambling business can replenish the budget by the end of 2020
According to the head of the Servant of the People faction David Arakhamia, cash inflow for licenses giving the right to engage in gambling business in Ukraine may be here before the end of 2020.
The politician pointed out that despite the fact that there is still no clarity on the taxation issue, many operators are ready to buy a license. Separate budget accounts have been opened for receipts. Therefore, Arakhamia hopes that the sale of licenses can begin by the end of December.
Earlier, parliamentarians reported that in 2021 the issuance of licenses to representatives of the gambling business would replenish the treasury by 7.4 billion hryvnia.
The government has appointed a new member of the Ukrainian gambling regulator
The Cabinet of Ministers appointed Tetiana Kiriienko to the position of a member of the commission in charge of monitoring the gambling activities. A corresponding contract will be valid during the quarantine period.
Thus, Tetiana will enter the team of the gambling regulator together with Olena Vodolazhko, Yevhen Hetman, Oleksiy Botezat and Khrystyna Dutka-Hefko. Ivan Rudy will act as the Head of the commission.
On February 24, 2021, Chairman of the commission will deliver his speech and open the conference that will be held as part of the large-scale Ukrainian Gaming Week 2021 exhibition.
Read more materials about the peculiarities and prospects of Ukrainian gambling market in the "News" section