Ukraine’s attitude to gambling has swung back and forth. From the dissolution of the USSR until 2009, every form of gambling was allowed and thriving. In 2004, Law 4204 recognized slots, card and dice games, horse racing and bingo as legal games, and sports betting flourished even though the legislation did not mention it explicitly.
In 2009 a tragic fire in a slots parlour in Dnipropetrovsk forced the authorities to review the impact of gambling, which led to the notorious 2009 law on the Prohibition of Gambling Business. Online casinos and sports betting operators nevertheless used loopholes in the legislation to keep serving Ukrainian players.
The picture changed in Europe’s second-largest country when President Volodymyr Zelensky took the first steps towards legalizing gambling at every level. Those steps led to Bill 2285-D, approved in 2020, which legalized all forms of gambling and created a state regulator, the Gambling and Lotteries Regulation Commission (KRAIL), to license operators.
KRAIL issued the first online license at the beginning of February 2021 to Spaceiks LLC for its Kosmolot casino brand, for a fee of UAH 30.7 million ($1.1 million) and a five-year term. In March 2021, Parimatch became the first operator to receive both a sports betting and an online casino license from KRAIL, opening the way for more operators in a market that had been forecast to raise over $300 million in taxes alone.
Ukraine’s regulatory arrangements have continued to evolve since then, so confirm the current authority, fees and procedures before you apply.
Ukrainian License Types
The regulation issues licenses according to the type of service offered:
- Land-based casinos (a minimum investment in the region is required)
- Slot machine halls (up to 250 slots)
- Land-based and online sports betting
- Hippodrome pool wagering
- Online casino gambling
- Online poker
Slot machine halls, hippodrome betting shops, regular betting shops and casinos may also apply for a secondary license, for example so that a betting shop can install a slot machine or a land-based casino can add a betting shop.
Advantages of the Ukrainian Market
- Market size: according to some sources, the government values the market at over $1.4 billion. As an emerging market, it gives early entrants a considerable head start.
- A flat tax: a single 10% rate applies to every gambling vertical, lower than in most other regulated jurisdictions.
- No personal licenses: owners and employees of gambling businesses do not need licenses of their own, which would otherwise add cost.
- No cap on licenses: a registered operator can hold as many licenses as it needs, leaving plenty of room to expand.
Requirements for a Ukrainian License
Most requirements depend on the license type, but some apply to everyone.
General requirements
- Only a company registered in Ukraine can apply.
- The company needs authorized capital of at least UAH 30 million, around €1 million.
- It must not be owned, managed or controlled by a Russian citizen, or have a Russian company as a shareholder.
Land-based casinos
- In Kyiv, the casino must be in a five-star hotel with at least 150 rooms.
- Elsewhere, a four- or five-star hotel with at least 100 rooms is sufficient.
- The casino floor must cover at least 500 square meters.
- A special investment license allows companies that build a five-star complex with between 150 and 200 rooms to apply for a casino license.
Slot halls and betting shops
- Slot halls may have up to 250 machines on at least 300 square meters, and must be in hotels of at least three stars with at least 50 rooms in Kyiv or 25 rooms elsewhere.
- Betting shops follow the same rules, but need only 50 square meters of space.
None of these premises rules apply to online casinos, sportsbooks or poker sites.
License Costs and Taxes
Ukrainian licenses are issued for five years, at the following approximate costs:
| License | Approximate cost |
|---|---|
| Land-based casino in Kyiv | About €8 million |
| Online casino | Around UAH 30.7 million (€940,000) |
| Bookmaker | Around €5 million |
| Slot machine hall | A little over €1 million |
| Online poker | A little over €700,000 |
These amounts are linked to the national minimum wage, which changes regularly, so they are subject to change. Land-based casinos and betting shops also pay an extra fee for every gaming table, betting shop or machine on the premises; online operations do not.
On gambling taxes, Ukraine’s Committee on Finance, Tax and Customs Policy approved a tax bill under which all gambling verticals pay a flat 10% tax plus the 18% general corporate tax rate.
Application Procedure
Companies begin by submitting the required documents, such as confirmation of the source of funds, criminal records of owners, shareholders and key personnel, gaming equipment certificates and confirmation of the .ua domain and hosting provider. Land-based venues must also prove their location.
All operators must comply with the rules of the State Online Monitoring System, which watches gambling activity to make sure it is fair and lawful, and pay the fees for their license types.
How We Help
We help operators prepare and file their applications and set up compliant operations, with support at every step:
- Structure check: confirming that the applying company meets the registration, authorized capital and ownership rules.
- Document pack: source of funds, criminal records, equipment certificates and the domain and hosting confirmations, prepared and filed with you.
- Compliant operations: configuring the AML, KYC and responsible gambling tools in our casino platform and connecting game content and payment methods.
Ongoing Costs
Because licenses cover a five-year period, there are no annual maintenance costs. Land-based operators pay for any machine, betting shop or gaming table they add, but beyond the 10% tax on profits and the 18% general corporate tax, no other charges apply.
Exploring Ukraine? Contact our team or email sales@igamingsoftwaresolutions.com.
