Ranking of Successful Companies in the Ukrainian Lottery Business
Now Ukraine officially allows only such kind of the gambling business as lotteries. However, there are not so many lottery companies in the market. What operators work in the country successfully and will the law on legalization influence their activity?
development in Ukraine
After the ban on gambling in 2009, only lottery companies remained legal in the country. Apart from them, Ukraine allows the operation of sport poker clubs and betting houses work semiofficially using licenses of lottery operators and analytical centers.
Lottery business has been developing since the USSR when only state lotteries were legal. After the declaration of independence and until the official ban, the gambling business was flourishing in Ukraine: in 2008, market revenue reached €967 million and lottery accounted for €66 million of that sum. At the same time, companies acquired licenses and paid fees to the state budget.
In 2009, four operators remained in the market; they obtained licenses before the ban:
- Patriot Limited;
- MSL LLC;
- Ukrainian National Lottery (UNL);
In the next several years, all gambling companies gradually reshaped in lottery operators, in fact, not being them. In 2013, 80% of lotteries took place according to the rules that resembled the rules of prohibited games of chance (data of the Ministry of Finance).
In 2013, the biggest part of the market belonged to MSL but due to state sanctions, UNL gained the leading position. Currently, almost all lottery offices that function in the country are legalized through UNL.
Ranking of Ukrainian
The government attempted to legalize gambling several times. One of the attempts took place in 2015 and failed to succeed. Only sport poker managed to enter the legal field. It was officially allowed in 2018. In the lottery field, the largest companies remained and shared the market.
- Ukrainian National Lottery (UNL)
The largest operator in the country, which includes such lotteries as Super Lotto, Keno, Maksima, and many other smaller draws with minor jackpots. Founded in 1997, UNL has almost monopolized the gambling market in Ukraine.
UNL is a member of the World Lottery Association and the European Lotteries Association. Now the company is considered the biggest taxpayer among lottery operators in the country. In 2018, it filled the budget with UAH 199.6 million. Such brands as Favorit Sport and Parimatch operate under the aegis of UNL.
- Molodsportloto (MSL)
This company owns such brands as Loto Zabava, SportLiga, MegaLot, Zolotoy Triumph, and other lotteries. The lottery operator started operations in 1998. In 2016, the company got a certificate about the official record of Ukraine for the biggest number of millionaires.
Until 2014, when MSL fell under sanctions for the operation on occupied territories and suspicion of connection with Russian investors, the company was considered the biggest in the country.
MSL is a member of well-known global lottery associations. In 2019, the operator got WLA Responsible Gaming Certification.
Founded in 1997, the company specializes in the organization of instant lotteries. Overall, the operator conducts around 30 draws including Eldorado, Kozyrna Mast, Super Gol, and many other lotteries.
Partners of Patriot operator are state enterprise Oschadbank and Ukrposhta, where Patriot lottery tickets are distributed.
How changes in legislation
will influence lottery companies
The president of MSL George Lozhenko believes that today the Ukrainian lottery market is regulated very poorly. The specialist states that the main factors that hinder the development of companies are the unfavorable taxation system and nontransparent licensing conditions, among other things.
George notes that due to the taxation of the smallest winnings, people prefer using services of shadow companies, strengthening positions of the illegal gambling market. New regulatory norms can be hardly called ideal for lottery operators, as they give advantages to slot machine parlors.
Besides, the president of MSL thinks that the state has to introduce compulsory responsible gaming certification for companies. The European Lotteries Association sets the requirements and the acquisition of such a certificate indicates the operator’s integrity and transparent conditions of operations.
You can learn more about the Ukrainian gambling market, talk to industry experts, and listen to their opinion regarding the legislation intended to legalize the gambling business at the exhibition of gambling software and hardware Ukrainian Gaming Week 2020. The event will take place in Kyiv on March 11-12.