Insight

Ukraine's parliament revokes 2009 ban on gambling

Ukraine's parliament revokes 2009 ban on gambling

Oleksii Atroshchenko

Oleksii Atroshchenko

November 18, 2020 10:39 AM

Kyiv, Ukraine

On July 14, the Verkhovna Rada (Parliament) of Ukraine lifted the ban on gambling by adopting the draft law "On state regulation of activities in the organization and conduct of gambling" (2285d) in the second reading and as a whole. The introduction of the ban in 2009 had not lead to the disappearance of gambling, but instead simply created "grey" and "black" gambling markets in Ukraine, amidst growing criminalization (the gambling business was bypassing prohibition by using gaps in legislation. Various types of gambling were acting under the guise of forms allowed by the legislation, primarily lotteries and similar betting games).


Background

The drive for the legalization of gambling had been signposted as part of Ukrainian President Volodymyr Zenelsky's economic plan. After his election in mid-2019, Zenelsky had promised to legalize the gambling business in order to secure additional budget revenue. The adopted law reflects the compromise reached between the State and market players who were actively engaged in the development of this legislative initiative and its improvement.


Key Provisions of the Law

The newly adopted law creates the legal basis for the State regulation of economic activity in the field of organization and holding of gambling in Ukraine, and determines the legal, economic, social and organizational conditions for the functioning of gambling. In particular, the law provides for:

1. An exclusive list of activities in the field of gambling that are allowed in Ukraine, including:
  • organization and holding of games of chance in casinos and gambling establishments;
  • organization and holding of games of chance by casinos online;
  • organization and holding of betting activity in bookmakers' facilities and online;
  • organization and holding of games of chance in slot machines halls;
  • organization and holding of games of chance in poker online.
2. The mandatory licensing of activities in the field of gambling (license fees depend on the type of activity, location of the gambling establishment, etc.);

3. Special requirements towards gambling equipment that can be used in Ukraine as well as criteria (incl. financial) which entities operating in the sphere of gambling should meet;

4. Requirements for players and their identification (gambling services are not allowed to be provided to persons under 18, etc);

5. Administrative and criminal liability for the violation of the Law; the establishment of a new state body responsible for gambling market – the Commission for the development and regulation of gambling and lotteries (subordinate to the Government).


Next Steps
  • Consideration by the Parliament of draft resolutions repealing the Verkhovna Rada's passing of the Law. The relevant draft resolutions were submitted by MPs from the political parties "Batkivshchyna" and "Opposition Platform – For Life" as well as the political group "For Future": 2285D-P, 2285D-P1, 2285D-P2. The lead Parliamentary Committee shall prepare its opinion on the suitability for their approval or rejection no later than three days after submission of these draft resolutions and the Verkhovna Rada shall consider them at the plenary meeting without a vote to include the matter on the agenda;
  • Signature of the Law by the Chairman of the Verkhovna Rada. The text of the law shall be submitted for signing by the Chairman of the Verkhovna Rada within ten days. The Chairman shall sign a law no earlier than two days and no later than 5 days after its submission. The Chairman shall send a signed law to the President to Ukraine without delay. Thus, the law shall be forwarded to the President of Ukraine for signing no later than July 29;
  • Consideration of the Law by the President of Ukraine. The President of Ukraine shall sign the law within fifteen days of its receipt, accepting it for execution, and shall officially promulgate it or return to the Verkhovna Rada with substantiated and formulated proposals for reconsideration. Thus, the law shall be signed by the President Ukraine no later than August 13.

Given the new Bill to end gambling prohibition was promoted by the Presidential party "Servant of the People", we do not expect the President veto to be applied. Rather, we can expect the Bill to pass smoothly in the coming weeks, signaling the re-birth of a major industry expected to contribute significantly to the State Budget via tax revenues.

Please click here to download the memo.

Related Articles

A Message From Best Lawyers Regarding Ukraine and Russia Listings


by Best Lawyers

Best Lawyers is pausing all research efforts in Ukraine and Russia for 2023.

Ukraine and Russian Research Update

Announcing the 2022 Best Lawyers in Ukraine


by Best Lawyers

The results include an elite field of top lawyers and firms.

Announcing the 2022 Best Lawyers in Ukraine

How This Firm Is Shaping the Economic Future of Ukraine


by Best Lawyers

Denis Lysenko discusses how AEQUO has helped build a new business environment.

An Interview With AEQUO

An Interview With Sayenko Kharenko


by Best Lawyers

Ukraine's 2020 “Law Firm of the Year” winner in Capital Markets Law

An Interview With Sayenko Kharenko

In the News: Texas 2019


by Best Lawyers

A roundup of relevant news from lawyers listed in Texas.

Legal News Roundup Texas

Return the Favor When Bidding


by Denys Myrgorodskiy

Denys Myrgorodskiy, the managing partner of Dynasty Law Firm, looks at the process of withdrawing insolvent banks from the market in Ukraine and its potential consequences.

New Bank Fraud Laws in Ukraine

How AEQUO Is Embracing Legal Tech


by Best Lawyers

Anna Babych discusses AEQUO's 2019 Ukranian "Law Firm of the Year" award in Mergers & Acquisitions Law with Best Lawyers.

AEQUO "Law Firm of the Year" Interview

Staying Competitive in Competitions and Antitrust Law


by Best Lawyers

Igor Svechkar of Asters talks with Best lawyers about his firm's 2019 Antitrust "Law Firm of the Year" award for Ukraine.

Asters Q&A Law Firm of the Year

Olga Prosyanyuk of Aver Lex on Her Criminal Defense Practice


by Best Lawyers

Aver Lex won the 2019 "Law Firm of the Year" award for Criminal Defense in Ukraine.

Meet Viktor Yanukovych's Lawyer

The Birth and Evolution of the 360 Deal


by Orville Almon

The first new artist 360 deal was created by him, along with attorneys Jim Zumwalt, Kent Marcus, and Jim’s partner Orville Almon in 2004.

The 360 Deal

Special Aspects for Attracting Investments into Ukrainian Agribusiness


by Dmytro Alexandrov

Attracting Investors Ukraine

Charlene Barshefky, 2017 Washington D.C. "Lawyer of the Year" for International Trade and Finance Law


by Nathaniel Barr

Ambassador Charlene Barshefsky of WilmerHale.

WilmerHale

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background