• Ukraine Unveils High Licensing Fees for Online Gambling

    10 December 2015

    Ukraine jurisdiction

    The online gambling industry is interesting in that it's regulated in completely different ways in virtually every country on the planet. Ukraine has recently been working on legislation that would see them open up and regulate the industry as well, and the first indication is that the licensing fees and costs for doing business will be rather high. This is typically a bad thing for a jurisdiction for a variety of reasons.

    A Ukraine National Gambling Regulator

    As is typical, the main call for regulating the industry seems to be coming from the Ministry of Finance. The idea is that Ukraine can raise funds from the regulation of this industry, and a government will typically do anything reasonable to raise taxes. The Ministry of Finance wants to have a national regulator for the industry, which will naturally be under their full control. They've suggested a number of requirements for the regulation of online gambling operators, and it looks like they're a bit out of touch with how the industry works in today's times.

    Suggested Requirements

    The list of suggested requirements starts with the requirement that operators be based in Ukraine. This is more or less ridiculous considering how international the best operators are. Additionally, operators will be taxed at a rate of 20 percent, which is above average, and they'll have to pay an annual licensing cost of a whooping €1.5 million. It's worth noting that this is 150 percent more than the highest fees that can be levied for a land-based casino operation, and that fact hasn't gone ignored by industry figureheads who think these costs are entirely out of line.

    The Results of These Rules

    While nothing has been finalized as of yet, these rules could have an equivalent effect of the UIGEA in the United States that effectively strangled the online gambling industry without directly making it illegal. It'll be interesting to see how top operators, especially software companies like Net Entertainment deal with these regulations, or if they just decide to ignore Ukraine completely until conditions become more favorable. At this point, it would be difficult to blame them, but the proposed regulations still have a bit of time to be modified before they are passed and made into law.

    Related News

    • Ontario gaming commission gives green light to playson

      Gambling News

      Ontario Gaming Commission Gives Green Light to PlaysonIvan Stefanovic01 September 2022

      Playson is excited to offer its popular product portfolio to licensed operators across Canada’s second-largest province. The company has successfully met the AGCO’s regulatory standards and is now able to operate in Ontario. With a strong focus on providing engaging content, Playson is well-positioned to service the Canadian market and capitalize on the growing demand for quality digital entertainment. Variety of Online Slots

      Read full article
    • Ragingpop combines excitement and adventure

      New Online Slots

      RagingPop Combines Excitement and AdventureIvan Stefanovic26 August 2022

      While there are many slot games on the market that boast exciting mechanics, few can match the sheer thrill of RagingPop. Developed by AvatarUX this new title contains the hugely popular PopWins mechanic, which allows players to accumulate massive wins with every spin. What's more, the game is packed with stunning visuals and an engaging soundtrack, making it a truly immersive experience. Win Up to 20000x the Bet

      Read full article
    • Check out new online casino chipz

      New Casino Sites

      Check Out New Online Casino Chipz Ivan Stefanovic24 August 2022

      Award-winning iGaming group Rootz Ltd has just launched their fourth brand, Chipz Casino. This new casino is a sister site to Wildz, Caxino, and Wheelz and is owned and operated by Rootz Limited. Chipz Casino is the ultimate destination for online casino gaming. Enjoy a wager-free welcome offer, instant registration and play, and thousands of top titles from the best providers in the industry.

      Read full article