Gambling business legalization will bring Ukraine 4-5 bn hryvnias annually

Gambling business legalization will bring Ukraine 4-5 bn hryvnias annually

Head of Committee on Family Matters, Youth Policy, Sports and Tourism of the Verkhovna Rada of Ukraine Artur Palatnyi revealed the prospects of the Ukrainian gambling legalization in his interview with the publisher Gazeta.ua. According to the deputy, the Ministry of Finance of Ukraine concluded that gambling legalization would enrich the country budget by 4-5 bn hryvnias annually.

About the Ukrainian gambling banning

The politician also listed the reasons for the adoption of the law banning gambling business in 2009. At that time, the country was facing the growth of illegal gambling. The wide availability of casinos and slot machines led to the abuse among minors. This business also was a gateway to criminals.

That is why this segment was banned at a state level and the authorities were to regulate it within 90 days. However, the problem wasn’t solved throughout 7 years. Moreover, shadow gambling parlors are still functioning with no contribution to the state budget.

Ukraine Gaming Congress: Gambling business legalization will bring Ukraine 4-5 bn hryvnias annually - 1

Legalization prospects

Due to the legalization, Ukraine would get dozens of thousands of workplaces, not mentioning billions of hryvnias from a license sale, revenue taxes on gambling parlors, and VAT on related services. It would also have a positive effect on the state budget and its internal market in general.

The deputy noted that about a dozen of similar bills passed the Verkhovna Rada of Ukraine but none of them was taken into account, which can be explained by the corruption and lobbying.

However, Artur Palatnyi is sure that the gambling segment will be legalized providing two major ways of implementing it:

  1. A compromise. The authorities along with all market players develop a bill satisfactory for each party. For this, the document has to be adopted in the first reading with amendments added later.
  2. A segment division. Three independent laws about casinos, betting shops, and lotteries are more likely to be adopted. If they are regulated autonomously, the needs of each gambling direction will be met in a more effective way.

 

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