Gambling business in Ukraine more than doubled tax payments
11 September 2024 07:26
In January-August 2024, gambling organisers paid UAH 11.7 billion in taxes to the budget, which is 2.1 times more than in the same period last year. This was announced by the Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev, "Komersant Ukrainian" reports
“Over 8 months of this year, we have a several-fold increase in budget revenues! Thus, since the beginning of the year, the gambling business has replenished the state treasury by UAH 11.7 billion, which is 2.1 times more than in the same period of 2023,” the statement reads.
According to Hetmantsev, the main revenue sources are income tax – 63.6% and personal income tax – 35.9%.
Over the past 8 months, UAH 7.4 billion of income tax was paid, compared to UAH 2.5 billion paid by the gambling business in the same period of 2023.
PIT revenues also increased: UAH 4.2 billion was paid in 2024, compared to UAH 3.1 billion in 2023.
Gambling business in Ukraine
The gambling business in Ukraine has a complicated history. Until 1989, gambling was banned in the USSR. After gaining independence, the legal gambling business began to develop in Ukraine, with the first casino opening in Kyiv in early 1991. However, in 2009, a law was passed to completely ban gambling, which led to its criminalisation and the development of the illegal sector.
In August 2020, a law on the legalisation of gambling came into force, allowing offline and online gambling, betting, slot machine halls and poker. The Commission for the Regulation of Gambling and Lotteries (CRGL) was established to oversee the industry. Despite the legalisation, problems remain: according to the expert, as of 2023, there were 14 legal and about 1,100 illegal casinos and betting companies in Ukraine. The authorities continue to fight the illegal sector by introducing new restrictions and sanctions against violators.
After the full-scale Russian invasion, the problem took on a new dimension. It is believed that there is a whole epidemic of gambling addiction among Ukrainian soldiers at the frontline. There is no concrete evidence of this, nor is there any systematic journalistic or scientific research, but after a series of petitions, President Zelensky signed a decree to restrict online gambling. Gambling advertising and sponsorship may also be banned in Ukraine.
