Obtaining a license in Ukraine has been a very difficult task
Spaceiks LLC has become the first licensed online gambling operator in Ukraine under the rules of the country's Gambling Law 2020. The company's application was approved by the Ukrainian Commission for Gaming Regulation of Chance and Lotteries (KRAIL) and will have to pay a license fee of around $ 1.1 million and obtain a five-year online gaming license.
Obtaining a gambling license in Ukraine has been a very difficult task, Spaceiks was rejected a total of three times until the commission finally gave its approval, KRAIL has several important requirements for applicants. Before Spaceiks' approval, five other companies were rejected by the gambling authority.
The Ukrainian gambling market was recently re-legalized after 11 years
The history of gambling in Ukraine dates back to Soviet times when the communist government allowed state lotteries and gambling to work, but gambling also existed illegally in underground private casinos, hidden from any state control.
The first attempts to legalize gambling were made shortly after Ukraine gained its independence. In the early 90's, gaming machines became a new form of social entertainment and their popularity increased to incredible levels. The lack of restrictions on the location of gaming venues meant that gaming machines were to be found anywhere, in coffee shops, cinemas and other public places.
Before Ukraine's new Gambling Law was introduced by the Parliament of Ukraine, the Verkhovna Rada, on August 11, 2020, gambling was completely banned across the country. Parliament banned all forms of gambling in 2009, following a gambling hall fire that resulted in nine deaths. The official ban not only did not eliminate or at least reduce the levels of gambling in Ukraine, but it contributed generously to the further expansion of illegal gambling.
Multiple major forms of gambling were re-legalized in the country, including online gambling and slot halls. Land-based casinos were also legalized, provided they are located in hotels. Still, Ukrainian operators face certain limitations, they first need a KRAIL license, and companies with Russian shareholders or beneficial owners (UBO) do not need to apply. It is not yet clear how these recently accepted forms of gambling would be taxed, Ukraine's most recent tax bill, proposed a GGR tax of 5% for bookmakers, 10% for online gambling and lotteries and 12.5% for slot machines.
The future of online gambling in Ukraine
The objective of the law is not far from popularizing gambling among the masses but quite the opposite, it aims to establish state control over gambling in Ukraine and bring it to the legal scene. This time, the government is committed to taking all necessary measures to prevent excessive gambling and the emergence of hundreds of regular casinos throughout the country.
With the help of legalization of gambling, the government also aims to attract considerable investment to Ukraine and receive additional budget revenue, for this, the law prescribes a number of incentives for investors.This new law pursues the ultimate goal of making gambling in Ukraine not only profitable for the economy and the state budget specifically, but also to ensure the safety and reliability of the market. It is better to have a regulated gambling market that guarantees protection against fraud and the right conditions for all players than a shadow market that is not subject to rules and is often used for fraudulent reasons.
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