Ukraine plans to change the legal regulation of gambling

The Ministry of Digital Transformation and PlayCity have prepared comprehensive amendments to the Gambling Law and the Tax Code. 

Gambling was legalized in Ukraine back in 2020. This sector of the economy was brought out of the shadows and placed under state control. Now, there are plans to transition from formal regulation to a system of real state control and digital monitoring. This also concerns the protection of players, which includes:

• Mandatory monitoring of gaming behavior;
• Responding to signs of risky behavior that could lead to gambling addiction — temporary or complete exclusion from the game;
• The ability for players to set additional personal limits and a self-restriction function.

They also mentioned:

• Strengthening control over the online segment;
• Introducing requirements for reporting and control over the activities of gambling service providers;
• Expanding opportunities to check license holders for ties to the aggressor state. 

Regarding the digitization of processes:

• A single state register in the field of gambling is being created as part of the online monitoring system.
• Licensing procedures are being simplified, and control is shifting to a data-driven format.

Regarding gambling organizers: 

• Introduction of a clear gradation of violations of legal requirements and commensurate sanctions for them.
• Differentiation of liability for formal and critical violations.
• Introduction of fines for technical and procedural shortcomings.
• Serious violations that pose risks to players or the state will result in license revocation.   

Tax Code: what’s new

• Establishment of a single tax rate on income from gambling activities — 18%;
• Elimination of double taxation for businesses;
• Clear definition of taxation of players’ income — tax is paid on the positive difference between winnings and funds deposited; 
• Synchronization of tax reporting with DSOM data; 
• Introduction of verification mechanisms in case of significant discrepancies in data on the activities of gambling organizers.