January 30, 2020

Lawmakers in Ukraine introduce new Bills to Establish Tax Rates

Lawmakers in Ukraine introduce new Bills to Establish Tax Rates

Lawmakers in Ukraine have just submitted three bills that seeks to establish gambling tax rates in the country once it becomes legal.

If any of the three bills are passed into law, it would immediately come into effect together with Oleg Marusyak’s bill to legalize gambling, which passed its first reading in the Rada with 260 out of 450 votes.

Meanwhile a bill submitted by Marian Zablotskyi and Marusyak, Bill 2713, sets the tax rate for lotteries and all forms of gambling at 25%.

An alternative, bill 2713-1, submitted by Dmytro Natalukha, proposes a 7.5% GGR tax rate from bookmaking, 22% from lotteries, and 12.5% from online gambling.

The Bill 271302, submitted by Oleksandr Dubinsky, on the other hand, would establish a 25% GGR tax rate for all forms of gambling –land-based, online, and lotteries.

The three bills are currently being taken into consideration by the Committee on Finance, Tax, and Customs Policy.

Legalizing Gambling in Ukraine

Marusyak’s bill that aims to legalize gambling includes a UAH 6.7 million ($277,300) license fee, and a UAH 41.7 million ($1,895,257.37) fee for casinos in hotels with 200-250 rooms. For casinos in hotels with more than 250 rooms, a fee of UAH 62.6 million is imposed. These license fees will track the country’s minimum wage to adjust for inflation.

The bill would help ascertain bookmaking licenses via a system where each licensee is allowed to open 5 bookmaking shops. There would be a total of 32 bookmaking licenses available in Kyiv, 16 between Odes and Kharkov (Ukraine’s other large cities), and another 32 for the rest of the country.

The number of gambling machines would be limited to around 40,000 and players must be at least 21 years of age to gamble.

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