The Ukrainian Parliament adopted Draft Law No. 2713-d in its first reading, which can reduce taxes paid by gambling businesses
What are the main ideas behind the Draft?

Following the resolution on lifting the ban on gambling, Draft Law No. 2713-d has been developed to regulate taxation and stimulate the development of legal gambling to finally withdraw its funds from the shadow market.
Draft Law No. 2713-d aims to bring the following changes to the Tax Code of Ukraine:
  • to tax the income from the organization and conduct of gambling, activities for the issuance and conduct of lotteries at a rate of 10% (by comparison, current legislation provides for taxation at 18% income tax on bookmaking, gambling (including casinos), 10% income tax on gambling using slot machines, 30% income tax on issuing and conducting lotteries). Thus, accrued income tax reduces the financial result that is subject to profit tax.
  • to abolish personal income tax on the prizes in gambling or lottery, the amount of which do not exceed 8 minimum wages set for January 1 of the relevant calendar year (UAH 48,000 as of January 1, 2021).

Draft Law No. 2713-d also aimed to abolish the triple fee for licenses to organize and conduct bookmaking activities, online casino gambling, as well as to cancel yearly triple fee payable for slot machines.

Taking into consideration the explanatory note, the reduction in the tax burden on the gambling business is explained by comparison with EU practice, where a balanced system of taxation of activities related to the organization and conduct of gambling has been formed. Yet, gross gaming revenue (GGR) at the rate of 10% in Ukraine would be one of the lowest in Europe.

Reducing taxes on the creation and conducting of gambling definitely makes it more accessible as a business. Adoption of the Draft Law No. 2713-d may lead to an increase in budget revenues in the long run together with the growth of casino chains around the country. Thus, Draft No. 2713-d raises profound questions, ones that are undoubtedly in the public interest to be answered, as to how it would bring such a high degree of benefit to national business or the economy, when the evidence of the social damage of addiction to gambling being inflicted on the public is so obvious and should be a concern to us all.


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