The war in Ukraine has made its own adjustments to the work of all sectors of the economy, from engineering to retail. Of course, many industries suffer losses. Authoritative foreign sources predict that the fall in GDP in 2022 will be 45%. Will the hostilities affect the development of the country’s gambling industry? Read the material on our information portal Ratatu.
What happened to the gambling business in Ukraine?
The war affected the sphere of gambling services of our state. With the outbreak of hostilities, the ground segment almost completely stopped work, except for a few casinos in the Western part of the country. The online segment still continues to operate, although not in such volumes as in the pre-war period. The reasons for this are a decrease in the income of the population and the inability of some players to spend their leisure time online.
Aid to the Armed Forces of Ukraine and contributions to the state treasury
It is known that the All-Ukrainian Gambling Council UGC unites more than 80% of legal casinos throughout Ukraine. At the initiative of the association, many gambling sites support the Armed Forces of Ukraine and finance various humanitarian projects.
Ways to help:
- directing part of the profits to various funds;
- charity tournaments and lotteries
- special fundraising campaigns;
- and other events.
The accumulated funds are directed to the needs of the Army and Territorial Defense, transferred to humanitarian funds, animal shelters.
The majority of UGC members not only support the people of Ukraine financially, but also deduct license fees and taxes during such a difficult time. The money received by the budget is directed to the defense of the country, social security for internally displaced persons and vulnerable segments of the population, and the construction of destroyed infrastructure facilities.
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Gambling business supports the economy of Ukraine: information from CRAIL
According to CRAIL, representatives of online gambling support Ukraine even during a full-scale invasion of Russian troops, transferring contributions to the state treasury in a timely manner. To date, the budget of Ukraine, starting from 2022, has received over UAH 640 million. Another UAH 190 million is expected. from organizations that must pay an annual fee.
In 2022, payments were received from the following gambling establishments:
- UAH 23.4 million Parimatch LLC for the provision of gambling services on the Internet and UAH 108 million. for the implementation of betting activities;
- UAH 36 mln. LLC “PRIMUM” for the provision of gambling services in stationary casinos;
- UAH 23.4 million UKR GAME TECHNOLOGY (Pin-up casino) for online gambling.
Thus, many Clubs finance the needs of the state. Some do charity work, others transfer taxes and fees to the treasury.
Gambling Tax Bill 2022
In 2022, all legal institutions are counting on the adoption of law 2713-d, which should make adjustments to the taxation of the gambling business.
Legislative changes include the following:
- Cancellation of the 3-fold license fee (instead of UAH 23.4 million, online casinos will charge UAH 7.8 million for obtaining a license, and UAH 36 million will be taken from bookmakers instead of UAH 108 million) .);
- the tax rate on gambling business income will be fixed at 10%;
- The casino is obliged to transfer 18% of personal income tax and 1.5% of the military tax to the treasury if the client’s winnings amount to 10 minimum wages (approximately UAH 65,000)
According to experts, the total income from the legalization of gambling in 2021 is measured at UAH 30 billion. Expectations from the change in legislation 2713-d come down to one thing: the exit from the shadow of an even greater number of gambling establishments and bookmakers. The “white” gambling industry of Ukraine will not only fill the state treasury, but also provide high quality customer service. Recipients of gambling services of licensed operators can be sure of the honesty of payments and the safety of personal data.
Recall that the amendments to the Tax Code 2713-d have already been voted in the first reading in the summer of 2021. The bill was submitted to the Verkhovna Rada at the end of January 2022, but was never considered. It is expected that by the end of this year the deputies will still accept it.