In January 2007 the Ukrainian Finance Ministry decided to tackle the legal vacuum that exists for gambling in the country and submit a bill to regulate and license lotteries and gaming. This year gambling regulation is a hot topic in the country, with Verhovna Rada, the Ukrainian parliament, expected to issue a comprehensive gambling law. There are now four bills under consideration and the Government has begun a review of its options.

In the early 90s the gambling market in Ukraine began to expand and the gaming industry has become one of the country’s most profitable businesses. At present there is no unified legislative act to regulate the various gambling sectors; licensing falls under a variety of different laws, including the Patenting Act and by-laws issued by the Cabinet of Ministers. The Ministry of Finance issues licences for the organization and maintenance of gambling outlets and totalizators whilst local state authorities issue licences for the organization of gambling activities.

In 2005 a moratorium on the issuance of lottery licences was announced. A Draft Act was submitted by the Ministry of Finance in 2007, which would provide for state regulation of lotteries and gambling activities if approved. The Draft Act establishes unified rules for gambling and a single regulator, as well as increasing mandatory payments to the State. It is also intended to close various existing loopholes in gambling legislation.

Present laws allow gambling businesses to operate in grey areas as requirements are unclear. This leads to profits being skimmed and the avoidance of payments to the State. The discussion of gambling in Ukraine has raised many controversial issues and the four bills under consideration range from prohibition to regulation and restriction. It is hoped that the final outcome of the debate will be a clear regulatory environment for gambling in Ukraine. (E-03.28.08)

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