Tax Revenues from Ukraine’s Gambling Business Skyrocket

by Roman Cheplyk
Wednesday, June 12, 2024
Tax Revenues from Ukraine’s Gambling Business Skyrocket

In the first five months of 2024, tax revenues from Ukraine’s gambling business surged, bringing UAH 7.38 billion into the state budget

This remarkable increase was reported by People's Deputy Yaroslav Zheleznyak.

Key Points:

  1. Massive Increase in Tax Revenues:

    • The gambling business contributed UAH 7.38 billion in taxes from January to May 2024.
    • This represents a 101-fold increase compared to the same period in 2021.
    • It is 38 times more than the revenue generated in the first five months of 2022.
    • The revenue is also three times higher than the same period in 2023.
  2. Challenges and Achievements:

    • Despite some operators losing their licenses and a significant portion of the gambling sector remaining in the shadows, the tax revenue results are impressive.
    • The substantial increase reflects the government's efforts to regulate and tax the gambling industry more effectively.

Regulatory Actions:

  1. Restrictions on Online Casino Activity:

    • On April 20, 2024, President Volodymyr Zelenskyy enacted a decision by the National Security Council aimed at mitigating the negative impacts of online gambling.
    • The decision includes recommendations for law enforcement to intensify measures against illegal gambling activities.
  2. Legislative Measures:

    • On April 24, the Verkhovna Rada passed the first reading of a bill to dissolve the Committee for the Regulation of Gambling and Lotteries (KRAIL) and implement stricter controls on the gambling business and advertising.
  3. Public and Government Response:

    • The push for stricter regulations followed a petition on the president's website, calling for restrictions on online casinos, which gained significant public support.
  4. Simplified Taxation System Ban:

    • The Cabinet of Ministers ended the automatic extension of licenses and permits for gambling-related activities.
    • President Zelenskyy signed a law prohibiting gambling businesses from operating under a simplified taxation system, reinstating a rule that excludes gambling entities from using the simplified tax regime.

Economic Impact:

  • The gambling industry paid over UAH 10 billion in taxes in 2023.
  • The total turnover of the gambling business in Ukraine grew nearly 15 times in one year, reaching UAH 207 billion.

These regulatory and legislative actions, coupled with robust tax collection efforts, have significantly boosted tax revenues from the gambling sector, demonstrating the government's commitment to regulating the industry and increasing its contribution to the state budget.

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