Ukrainian gambling market may undergo significant changes due to new limits
The Ministry of Digital Transformation of Ukraine has published a draft order that provides for the introduction of strict limits on deposits and gambling participation time. This may lead to a significant reduction in the legal gambling market and an outflow of players to illegal platforms.
According to a forecast released by Oleksandr Kohut, president of the Association of Ukrainian Gambling Business Operators (AUGBO), the legal market may shrink by one-third, with the state budget losses reaching 5.6 billion UAH per year. The introduction of stricter monthly limits will cause a massive shift of players to illegal online casinos, most of which are Russian-owned.
Kohut emphasized that although the goal of regulatory changes is to combat gambling addiction, they may lead to a shadow market, as limited legal opportunities will only strengthen the positions of illegal operators. This is confirmed by the experience of countries like the Netherlands, Sweden, and Germany, which have already faced similar challenges.
Deputy head of the Ministry of Digital Transformation Nataliya Denykiyeva noted that the ministry takes into account the market’s position and seeks to reach a compromise with operators to avoid a decrease in tax revenues and a transition of players into the shadows.
Research conducted by KANTAR, Gradus, and Factum companies showed that the share of the illegal market already ranges from 39% to 53%. The main reasons for players transitioning to illegal platforms include fast payouts, absence of betting limits, anonymity, and the use of cryptocurrencies.
| Consequences for the budget | Loss, billion UAH |
|---|---|
| Income tax | 3.7 |
| Personal income tax | 1.7 |
| Military levy | 0.257 |
