Operator Origins Under the Microscope in Ukraine’s Draft Law

Earlier this month, Verkhovna Rada, which is the Supreme Council of Ukraine, approved Bill-2285-D which started the process to lift the ban on gambling in the Ukraine for the first time in 11 years. Up to this point, the country has had a tenuous journey with games of chance ever since a fire led to the ban on all forms of gambling in 2009. 

The work-in-progress mandate names eight gambling services and specifies that each of these require a separate license.  

So, whether you’d like to own a land-based casino, online casino, retail sports betting hall, online sports betting site, slot machine hall, online poker, totalizer contracts or lotteries, expect an extensive application process. 

This is, however, a draft document so operator requirements and licensing conditions may change as the government settles on a final framework for its regulated market launch. 

 Under the Microscope 

Ukraine’s government requires that companies who apply for said licenses fully disclose their, “legal entity, in which ownership, shareholders or management cannot be residents of ‘foreign states’ recognized as an occupier or aggressor to the Ukraine” according to the proposed policy. 

In addition, all applying incumbents must disclose a charter capital of UAH 30,000,000 (€1.1 million) on the application that may include corporate securities, receivables, real estate. Basically, you can expect the application to be denied if charter funds are from unknown or unspecified sources. 

 License Legalities 

The details around land-based casinos have been comprehensively fleshed out in the document with specifications like the number of rooms the hotel should have in order to qualify for the license and the number of workers that can be employed.  

When it comes to gambling software used within all gambling categories, “the gambling software and hardware must be tested and certified by an entity accredited by the Ukrainian accreditation body or a foreign accreditation body, (which accreditation is accepted by Ukraine under international treaty) for compliance with the requirements of ISO/IEC 17020 (DSTU ISO/IEC 17020) and ISO/IEC 17025 (DSTU ISO/IEC 17025) or other standards by which they are replaced.” 

Should online casinos wish to offer poker games or tournaments, they will need the online poker license in order to do so. 

In terms of monitoring the activities of license holders, the government hopes to implement an online system within 2 years of the approval of the law. 

 On the Clock 

The Ukraine government is working towards getting the necessary details wrapped up by summer 2020, however, given the number of stages still to come, and the amount of back and forth it has taken to get to this point, it is questionable as to whether the desired timeline is realistic.