Gambling laws in Ukraine

Yes.

The Law of Ukraine on the State Regulation of Activity of the Organisation and Conduct of Gambling No 768-IX dated 14 July 2020 (the “Gambling Law”) is the main legal act governing gambling activities in Ukraine.

Yes.

The Gambling Law provides for separate licences for online gaming (casinos) and online poker. Online betting is covered by one unified licence for both land-based and online operations. 

Yes.

The Regulatory Commission on Gambling and Lotteries is the regulator for the supervision of gambling activities.

Website: gc.gov.ua

Yes.

Both the Gambling Law and the Law of Ukraine On Advertising No 270/96-ВР dated 3 July 1996 (the “Advertising Law”) regulate gambling advertising.

Yes.

The gambling operator must be a resident of Ukraine, i.e. be incorporated and act under the laws of Ukraine.

No.

The Gambling Law does not provide any explicit requirements regarding the legal forms of business for gaming companies.

Yes.

There is no explicit prohibition on this in the Gambling Law, except for certain specific restrictions on shareholders from a state recognised by law as an ‘occupier-state’ or ‘aggressor-state’ (currently, the Russian Federation).

No.

There are no explicit foreign investment restrictions regarding gambling activities in Ukraine, except for certain specific restrictions relevant to an ‘occupier-state’ or ‘aggressor-state’ (see section 2.3 above).

Yes.

The gambling operator must have a paid statutory capital of at least UAH 30 million (ca. EUR 830,000).

Yes.

There is no explicit prohibition on this in the Gambling Law, except for certain specific restrictions relevant to an ‘occupier-state’ or ‘aggressor-state’ (see section 2.3 above).

No.

Under the Gambling Law, gambling operators must report any changes to the regulator to the information in the operator’s licensing record within one month.

Yes.

The detailed licensing procedure for gambling activities is regulated by the Gambling Law and the gambling licensing conditions approved by the Resolution of the Cabinet of Ministers of Ukraine No 1341 dated 21 December 2020.

3.2.1 Betting?

Yes.

A separate betting licence covering both land-based and online betting. Ukraine also has a specific licence for totalisator betting on horse racing (hippodrome).

3.2.2 Sports?

No.

No specific sports licence other than a betting licence.

3.2.3 Skill games?

No.

No specific skill games licence.

3.2.4 Card Games?

Yes.

Licences for both land-based poker (covered by a gaming (casinos) licence) and online poker, requiring a separate licence. Sport poker is exempted from regulation.

3.2.5 Casinos?

Yes.

Separate licences for land-based casinos and for online casinos.

3.2.6 Lotteries?

Yes.

A separate licence. State monopoly.

3.2.7 Arcades?

No.

No specific arcades licence.

Yes.

The provision of gambling services (supply of software directly used in gambling activity) is subject to licensing.

All gambling licences are issued for five years.

The regulator has 15 working days to review the application.

No.

Yes.

Yes, the Gambling Law sets out different requirements for gambling operators in terms of gambling equipment, personnel, location of the website (for online gambling), etc.

Yes.

According to the Ukrainian AML laws, gambling operators are defined as primary financial monitoring entities, which are required to conduct a respective check (identification and verification of a player, checking the source of transferred funds, etc.) of the players in certain cases.

Yes.       

The law requires gambling operators to report to the respective regulators in terms of AML and data protection in certain specific cases. 

No.

Data protection matters in the gambling sector are governed by the general rules of Ukrainian data privacy legislation, mainly including the Law of Ukraine on Personal Data Protection No 2297-VI dated 1 June 2010.

No.

Ukrainian data protection laws do not explicitly specify the jurisdictional scope. However, they can be interpreted: (i) to apply to all personal data processed in Ukraine; and (ii) to have extraterritorial application only regarding data transfers to and from Ukraine.

Yes.        

The Human Rights Ombudsman.

Website: www.ombudsman.gov.ua/ua/page/zpd/

Yes.

Under a general rule, Ukrainian companies are allowed to purchase and transfer foreign currency abroad to do business in the aggregate amount of up to EUR 2 million (the “E-limit”) per calendar year. The E-limits do not apply to a range of transactions, the list of which is exhaustive and provided by law.

Ukrainian residents must use the purchased foreign currency within ten business days after the relevant amount has been credited to their account. If not used, the bank is obliged to sell the foreign currency credited to the resident's account within five business days.

There are no restrictions regarding the amount or timing for the repatriation of investments and dividends out of Ukraine.
During martial law, the NBU constantly changes currency regulations. In September, the NBU banned businesses from purchasing foreign currency until the currency available in the company’s bank accounts is spent.

Starting from October 1, companies can transfer foreign currency to the accounts of their subdivisions and branches abroad subject to several conditions, in particular: 

• such transfers are allowed only for the maintenance of the relevant branches or divisions;
• the monthly number of transfers should not exceed one-fourth of the total amount of funds that the business transferred abroad in 2021 to maintain its units;
• transfers must be made at the expense of the business’s own foreign currency.

6.2.1 What is the approval regime and process in place?

No.

Other than compliance with the E-limits.

6.2.2 Must permission be sought for each transaction, or can pre-approvals take place (subject to defined limitation, or otherwise)?

No.

Except for compliance with the E-limits.

6.2.3 Other comments

Ukrainian law provides certain rules for establishing and maintaining onshore and offshore bank accounts and making cross-border loans to Ukrainian residents.

Yes.         

Only for those advertisers that have a valid gambling licence and subject to specific restrictions provided by the Gambling Law and the Advertising Law. 

Yes.   

Gambling advertising is restricted, among others:

• on radio and TV, including via cable, satellite, IP-TV, online TV, mobile TV, digital terrestrial TV and other means of signal transmission in the period from 6.00 am to 11.00 pm;
• in all printed media except for specialised gambling publications;
• on the outer and inner surfaces of vehicles and the subway;
• by means of outdoor advertising;
• on goods (including clothing) intended primarily for persons under 21 years;
• in places of theatre events, concerts, and other events for persons under 21 years.

Yes.   

Subject to strict restrictions. The use of trademarks or other symbols that are used for provision of gambling is restricted for the sponsorship of TV, radio programs, theatre events, concerts and other events (including sport events) intended mainly for persons under 21 years of age, except for broadcasting of sports events.

Yes.         

Except for celebrities who are under 21 years of age.

Yes.        

Gambling operators must comply with the “responsible gambling” requirements, such as:

• restricting access to certain players;
• periodical training for personnel regarding “responsible gambling” principles;
• placement of the materials about “responsible gambling” and gaming addiction.

Yes.         

• All gambling advertisements are required to display the following warning message: “Gambling can be addictive. Follow the rules (principles) of responsible play”. The warning message must occupy at least 15% of the area of advertising, and the text must be black on a white background.
• The advertiser can only be an entity that holds a respective gambling licence, and the advertisement must contain the information on such licence, its number, date of issuance, and the issuing authority.
• Gambling advertisements must not be targeted at vulnerable groups of citizens (minors, low-income people, people with mental illness).
• Gambling advertisements should not create a perception that gambling is easy and that gambling can be a source of income or an alternative to work.

Yes.        

Currently, Ukrainian tax legislation sets out the following taxation rules for the gambling industry:

• Companies operating in the gambling industry, including casinos, gambling halls, slot machines and betting, should pay: (i) corporate income tax (CIT) on their financial results (profit) at general rate 18%; and (ii) additional income tax (“gambling tax”) on their proceeds from gambling activities.
• The “gambling tax” is currently established at the following rates: (i) 10% of gross income received from operation of slot machines; and (ii) 18% of income received from betting, casinos (other gambling activities) decreased by the amount of winnings paid to players (GGR).
• The amounts paid as “gambling tax” are not deductible for CIT purposes.

Separately, all winnings paid to players are currently taxable at the level of individual and general 18% personal income tax (PIT), and a 1.5% military levy. The company making the payment is responsible for withholding and remitting the tax amounts due from such winnings.

A new draft law on the taxation of gambling is currently under consideration in parliament (given the current war, it is not possible to predict the timeline of its adoption). The key provisions of the new draft law are:

• corporate income tax (CIT) at general rate 18%;
• the rate of “gambling tax”: 10% of GGR for all kinds of gambling activities;
• amounts paid as “gambling tax” are deductible for CIT purposes;
• the taxation of players: winnings up to eight times the minimum monthly salary (currently UAH 48,000 (ca. EUR 1,300)) exempted from tax, beyond which there is 18% PIT + 1.5% military levy.

During martial law in Ukraine, gambling businesses are temporarily allowed to be taxed under the simplified taxation rules and rates.

Yes.

Depending on the manner of transferring monies abroad, Ukrainian withholding tax may apply.

Yes.

The tax implications may vary depending on the type of payment, its recipient and underlying legal instrument.

It is not allowed to offer gambling activities into Ukraine remotely.

Yes.

The taxation regime for the gambling industry is expected to be revised substantially soon.

Find out more gambling regulation related to Ukraine in the CMS Expert Guide to online regulation in Europe.