Online gambling in Ukraine
Background
In June 2009 the Ukrainian government implemented a general ban on gambling that saw casinos, slot machine halls and bookmaker offices shut down almost overnight. Similar to Russia’s clampdown on casino gambling (in both intensity and timing), the move was condemned by many as ill-timed in the wake of the global financial crisis and responsible for many thousands of casino workers becoming unemployed. Nevertheless, the prohibition remained in place for some time.
But while traditional casinos had largely disappeared, a new gambling phenomenon emerged to take their place across Ukraine – Internet gambling cafes. Taking advantage of a loophole in the prohibition that makes no consideration for the legality of online casinos, many local operators set up Internet cafe’s allowing customers to log-in to offshore casinos and play remotely.
These cafe’s or clubs were located near every metro train station in Kyiv. Rather than containing slot machines or other gambling devices as they used to, they were filled with computers. The online gambling market generally, consisting entirely of unlicensed offshore operators grew considerably while authorities debated whether to extend the ban to online activity.
Significant changes came in 2020. After its more than decade-long ban on most forms of gambling, the Ukraine’s Verkhovna Rada passed the Gambling Act in July 2020, which legalised and regulated both land-based and online gambling. The new law marked a major shift in the country’s approach to gambling, aiming to curb illegal operations and generate revenue for the state.
Current Regulations
Ukraine’s online gambling market is governed under the 2020 Gambling Act with the Ukrainian Commission for the Regulation of Gambling and Lotteries (KRAIL) responsible for licensing, monitoring, and ensuring compliance with the gambling regulations.
Licenses are issued for a wide range of remote gambling activities, including online casino games (slots, poker, blackjack, roulette), sports betting, and lotteries.
