By: Aydin Guney
In spite of many unsolved issues before the first casino can open its doors to its long and patiently waiting customers, there have been improvements in the Ukrainian Gaming Market during the past several weeks. As it is clear to all of us now, before gaming operators can receive a license to operate any gaming, hotels, where the gaming operator is planning to start operation, must receive permission.
Before understanding which hotels are eligible to apply for permission to place gaming zone (live casino, slot arcade or sports betting) in their territories, they need to be categorized and certificated by European standards as Ukraine is approaching towards Europe under President Vladimir Zelensky’s ruling. Up until today, many hotels all over Ukraine have had to reconsider and replan their infrastructure and floor plan to be able to get in the right category and receive the correct certificate to be able to apply for permission to place a gaming zone. So far, 18 hotels from Kyiv, Kharkov, L’viv, Odessa, Rivne, Vinnitsa, and Bela Tserkva have applied to KRAIL for permits.
02.02.2021 – Ivan Rudy, the Head of UGLC, announced on his Facebook page that the first license was issued to online casino «СПЕЙСИКС» (SpaceX) better known with its brand name in the gaming market as «Космолот» (Cosmolot) who has been operating in Ukraine during the last several years under a lottery license. «СПЕЙСИКС» (SpaceX) paid 23,4 million Hryvnas to conduct gambling. Even though it costs 6500 minimum wages (~ 6000 Hryvnas) = 39 million Hryvnas to receive an online casino license and can be paid in 5 even yearly payments, since there is no online monitoring system established, operator had to pay 3 yearly payments in advance which made it 23,4 million Hryvnas.
09.02.2021 – While Hotel Rus and Hotel Lybid of Kyiv have received their permission to replace gaming zone (slot arcade) in their hotels, Hotel Intercontinental was turned down because of missing documentation.
10.02.2021 – Two more operators, «ПАРИМАТЧ» (PARIMATCH) and «ГЕЙМДЕВ» (GAMEDEV) have received their license to conduct online casino this week. It was announced on the official web site of КРАИЛ (KRAIL).
10.02.2021 – Hotel Tourist of Kyiv has received permission to allow gaming operation (slot arcade) in their hotel premises.
During legalization of gaming business, one of the most disputed subject was wining tax of 18% deduction from customers winning. As committee clears itself by explaining, this rule was created to prevent money laundering. Many operators understand that they will have to pay for their customer and that will cost double taxing of the operator and will tragically increase the operational costs. It was suggested to Verkhovna Rada (Ukrainian Parliament) to consider 18% winning tax from minimum 50.000 Hryvnas winning but unfortunately this was turned down by the parliament.
Another long-argued rule of legalization has been obligating operators to save video recordings of the operation during one calendar year, while operators have been arguing it is very costly to operation to save such big amount of information for such a long period.
15.02.2021 – Hotel Opera of Kyiv has received permission to allow gaming operation (slot arcade) in their hotel premises.
15.02.2021 – Hotel Bratislava of Kyiv did not receive permission to allow gaming operation in their hotel premises.
15.02.2021 – Hotel Intourist of Zaporizhia did not receive permission to allow gaming operation in their hotel premises.
17.02.2021 – City Park Hotel of Bela Tserkva received permission to allow gaming operation (slot arcade) in their hotel premises.
Hotel Ukraine of Rivne received permission to allow gaming operation (slot arcade) in their hotel premises.
Hotel France of Vinnitsa received permission to allow gaming operation (slot arcade) in their hotel premises.
Hotel Lviv of L’viv City received permission to allow gaming operation in their hotel premises.
Grand Hotel Lviv of L’viv received permission to allow gaming operation in their hotel premises.
Hotel Gagarin of Odessa received permission to allow gaming operation in their hotel premises.
Hotel Kharkov of Kharkov City received permission to allow gaming operation in their hotel premises.
18.02.2021 – New operator «Фьорст Элемент» (First Element) has received license to operate online casino.
18.02.2021 – Hotel Druzhba of Kryvyi Rih did not receive permission to allow gaming operation in their hotel premises because of expired certificate of three-star hotel category.
19.02.2021 – Fairmont Grand Hotel of Kyiv received permission, at their second attempt, to allow gaming operation in their over 1500 m2 hotel premises. Successful international casino operator “Storm International” told to operate in Fairmont Grand Hotel.
19.02.2021 – Premier Hotel Abri of Dnipro City and Reikartz River Hotel of Mykolaiv did not receive permission to allow gaming operation in their hotel premises because of missing documents.
28.02.2021 – Hotel Intourist of Zaporizhia received permission to allow gaming operation in their hotel premises at their second attempt after completing all the documents needed.
28.02.2021 – Premiere Palace Hotel of Kharkov and The Teatralny hotel in Zaporizhia also did not receive permission for the premises due to incorrectly executed documents and an incomplete package of submitted documents.
02.03.2021 – «ПАРИМАТЧ» (PARIMATCH) has received their license to conduct sports betting this week. Earlier in February «ПАРИМАТЧ» (PARIMATCH) has received license for online casino as well.
In spite of Marian Zablotskiy being strongly against, Committee of Finance approved the bill offered by Oleg Marusyak to lower the tax rates of gaming busines in return to attract more foreign investors to market but The Verkhovna Rada did not vote amended bill 2713-D to equalize GGR for all types of gambling to 10%. It is still discussed if the decision was made political or logical and Anton Kuchukhidze believes that 2713-D bill will be put to the vote again in the parliament.
It looks like still so much to solve before gaming legalization could start up and running in Ukrainian market no matter how eager to start operations.
*Originally published Casino Life Ukraine March 2021*
