Ukraine’s gaming industry lives in hope of soccer’s Euro 2012, during which allegedly they may allow casino operations. It is periodically suggested that it would be appropriate to designate special gaming zones in the country for the gambling establishments. The new Prime Minister of the Autonomous Republic of Crimea, Anatoliy Mogilev, believes that gambling should be allowed in Crimea.

“Not anywhere, of course, but in special zones. The peninsula is a place where people come to relax and have fun. This kind of gaming zones there are, for example, in neighboring Belarus. And despite high taxes it will generate additional revenue for the Crimean budget," said Mr. Mogilev.

Experts estimate that legalizing gambling will generate over UAH 3 billion for the state. Prior to the ban on gambling there were about 13,000 gaming establishments in Ukraine. Their annual profit amounted to around UAH 16 billion. However, the experts and casino owners do not believe that there is any prospect of legalized casinos for Euro 2012 in Ukraine.

A proposed bill envisaged the restoration of the legal status of gambling, although only in large luxury casinos and online casinos. A substantial increase in revenues was planned due to the license cost that would be set at UAH 40 million for 7 years and rising cost of patents and certificates, as well as higher taxes. However the initial version of the bill caused much controversy and a few months later the Ministry of Finance presented its vision of the future law.

The Ministry of Finance suggested a ban on betting offices and slot machines and to locate casinos only in the resort cities of Ukraine on the premises of the premium hotels. However this concept displeased the experts and the casino owners. According to them, there is no point in opening casinos under such conditions since they would be unprofitable.

As noted by a market expert, Lyubov Loginova, Chairman of the Board of Alsart Group: “For example, even in the most luxurious casinos 90% of revenues are generated by slot machine arcades. Resort towns with poor infrastructure and low tourist flow are not interesting for potential casino players. Besides, the most popular Ukrainian resort area, the Crimean peninsula, has a major drawback due to seasonality. Therefore, throughout most of the year the casinos will stand idle. Experts believe that in the event of approval of such a law only a few casinos may be open, however there's a big question mark over their profitability.” (E-01.27.12)

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