Ukraine plans to form Gambling Commision by November

Big news for the Ukrainian gamblers! Ukraine’s gambling sector is facing some crucial changes and if there were very few restrictions regarding the online gambling system in the country until now, from November things won’t be the same.

New initiative

According to European Gaming, Ukraine’s government announced its plan to form a Gambling Commission. The reason for this initiative was ensuring a safe user experience and protecting its citizens from the potential negative consequences of online gambling which is quite common in recent months after it was legalized in Ukraine in August 2020.

As the government of the former Soviet Union country says, creating such kind of commission is important for regulating the gambling and lotteries market which has been a concerning factor in official discussions recently. The announcement was exposed to the Cabinet of Ministers which is the highest body of state executive power in Ukraine.  The plan has quickly bought the attention of the Prime Minister and it was easily approved. As decided, the Gambling Commission will be launched this year by November.

The new commission will play a major role in issuing licenses, making new regulations, managing and monitoring the activities of gambling business operators in Ukraine, and controlling the whole gambling industry and its effects on the society throughout the country.

According to the Cabinet of Ministers, thanks to the Gambling Commission, from now on illegal gambling companies will no longer have the possibility to operate under the guise of state lotteries. As they say, the legalization of gambling will stimulate the economy and as a result, creating additional jobs, reducing unemployment, attracting new investors, and receiving a significant source of additional value is expected. All of this will definitely play a great role in the success of the financial sector of the country and help its economy grow.

Legislation of Gambling in Ukraine

It hasn’t been a long time since gambling became officially legal in Ukraine. The Gambling Act was first introduced in August 2020 and it was eventually signed into law by the country’s president, Volodymyr Zelensky. Under this bill, online gambling, bookmaking, slot halls, and land-based casinos are legal in Ukraine but casinos can only be located in hotels. Since this time, casinos aren’t banned anymore from advertising their services online or using third-party marketing. It’s important to mention that this bill also includes ownership restrictions for licensees but only entitles registered in Ukraine received an operating license.

Establishing the Gambling Commission is indeed a huge step forwards as it’s a guarantee for safe customer experience, which is important as the development of a fair and regulated betting industry will probably be beneficial for Ukraine. However, for making these benefits long-term, delivering a fairer tax-system is also important, as the current tax system in Ukraine is pretty punitive and uncompetitive compared to similar international markets.  Introducing such kind of regulations will secure the viability of gambling in Ukraine.

Although there are still a number of flaws in Ukraine’s gambling sector and further regulations are needed, the Gambling Commission will probably make some changes in the financial industry for good.