International law firm Dentons’ CIS office sheds further light on Ukrainian gambling legalisation process.

Following last week’s news that the Ukraine’s parliament (Verkhovna Rada) had approved legislation legalising gambling in the country, the CIS office of international law firm Dentons has sounded a few notes of caution. 

With Ukraine’s Gambling Law set to progress through Rada oversight committees and receive presidential approval in summer, Dentons have pointed out that there are still likely to be changes, and the government has made it clear that any companies applying for licenses will be subject to strict checks. 

Specifically, Dentons said that all companies applying for a license, of which there are likely to eight to twelve different types, will be required to fully disclose their ‘legal identity’, including full ownership details – and that no one connected to the ownership of such a company can be residents of “foreign states recognised an occupier or aggressor to the Ukraine.” 

Furthermore, all those apply will be required to disclose a charter capital of UAH 30,000,000 (€1.1m), which can include corporate securities, receivables, and real estate. The government will refuse applications where the source of charter funds is unknown or unspecified.

Dentons also say that a fair amount still needs to be done before a regulated market is up and running in the country, including the incorporation of a regulator, passing of secondary regulation attached to sports and criminal laws, and of course, the settling of a tax framework for the industry. 

AYO.NEWS says:

As we explained last week in the iGaming NEXT Power Hour, though the Ukraine clearly holds a lot of potential for gambling operators, those eyeing the market should look at it as a very long-term project. 

Although gambling has been officially banned in the Ukraine for eleven years, it’s widely known that the country has been home to an extensive black market sector, run by oligarchs and crooks – many of whom are alleged to have political ties. 

Furthermore, the country remains in an extremely precarious security situation, with the Ukrainian armed forces still engaged in combat operations with Russian-backed separatists in the east of the country, and the ever-present threat of further open Russian intervention. 

Given this it’s not surprising that the Ukrainian government is keen to prevent Russian interests (the “aggressor”) gaining any control over the new gambling market. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020