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Anton Kuchukhidze: In 2022, the license revenue will exceed UAH 1 billion

A year of operation of the legal gambling market in Ukraine generated more than UAH 1.4 billion to the state budget from license payments alone. At the same time, only UAH 137.5 million was allocated for the activities of the state regulator, the Commission for the Regulation of Gambling and Lotteries (CRGL). The state body’s efficiency is obvious, since the treasury received 11 times more revenues than was allocated for its operation.

Based on the figures in the 2022 budget, the trend of CRGL’s efficient operation will continue. UAH 107 million were allocated for the Commission’s activities in the next year, while the expected budget income from license fees alone is expected to be UAH 1.2 billion.

The estimates are more than optimistic and indicate that the market will grow rapidly, resulting in at least two positive trends in the gambling industry.

1. The State will receive additional budget revenue, meaning more opportunities for the development of health sector, sports and culture, which, according to the specialized law on the legalization of gambling, are financed, including by proceeds from the issuance of gambling licenses.

2. The Ukrainian economy will have an additional incentive. The issuance of new licenses will result in the opening of new gambling establishments, as well as new investors and companies in the Ukrainian market. This will stimulate economic activity both within the industry itself and in related areas, thus creating positive impact on the economic system.

At the same time, there are two key conditions which would result in achieving or even surpassing the profit margins included in the following year’s budget.

1. Adoption of the draft law 2713-д. No matter how strong and creative a business may be, the market needs operating rules and the tax system as their basis. Such rules of the game will make it easier for Western market giants to enter the Ukrainian market, open new establishments or invest in new products and services for players. A transparent tax system will allow companies to build long-term business models in the Ukrainian jurisdiction.

2. Fight against illegal market participants. Illegal gambling establishments fail to pay taxes, damage the country’s economy, and create anti-competitive conditions for legal gambling operators. In addition, they pose a danger to the players’ life and health, thus creating an extremely negative image for the entire gambling industry. That is why a systematic fight against illegal market participants is one of the key aspects of the Ukraine’s legal gambling market operation.

By my estimate, provided that the dynamics of the market development maintains, the relevant legislation is adopted, and technical issues are resolved, the license revenue in 2022 will amount to UAH 1.5 billion. At the same time, the combined economic effect from the interaction of the gambling sector with other business areas may continue to generate tens of billions of hryvnias.

Anton Kuchukhidze, Chairman of the#nbsp;Ukrainian Gambling Council, exclusively for the “Ukrainian News”


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