Despite the war, the economic recession, and opponents of gambling legalization in Ukraine, licensed market representatives fulfilled their budgetary obligations. Thanks to legal gambling, our country’s budget has received more than UAH 1 billion. It gives optimism since the market managed to survive and tends to recover.
The fact that legal gambling managed to basically survive 2022 is already a huge achievement. However, the sector and CRGL representatives not only managed to keep the industry afloat but achieved their goals of filling the state budget.
In 2022, the state budget was to receive UAH 1.189 billion from the gambling industry. Of course, when this figure was introduced in the state budget, there was no war, and most informed market representatives believed that real income figures would be higher.
It seems that the war should have significantly changed these budget plans since gambling is not a priority for the authorities and citizens of the country at war. However, legal operators confirmed their ability to fulfil their obligations with the amount sent to the State Treasury account. The actual income from license fees is UAH 1.166 billion, that is, 98% of the planned amount. It is an achievement that speaks of some crucial market characteristics. It is these characteristics that will determine its development in the near future.
1. Even in extremely difficult wartime conditions, the State and market representatives have shown the ability to cooperate to preserve the industry and achieve their goals. This level of synergy between the State and business within the market functioning for only two years is exceptional.
2. Business has demonstrated a pro-government position and thus refuted claims about the danger of gambling legalization for the population. Gambling companies paid license fees and taxes and introduced several volunteer initiatives and projects to support the army and civilians.
3. The adoption of the specialized tax draft law 2713-d and the introduction of DSOM should become next year’s priorities. They will serve crucial catalysts for developing the market and attracting investment, even as the war continues.
4. The market’s potential is huge, and if there had been no war, the gambling business would have paid even more. If it manages to achieve goals set without taking into account such a risk as a war in an extremely difficult situation, under favourable conditions, the potential benefits for the State might be billions of hryvnias a year.
With the adoption of relevant legislative changes in 2023, the legal gambling market will be able to significantly increase its contribution to the state budget. Given how quickly gambling companies managed to adapt to the realities of the war, next year, we will also be able to see a growing market and even new gamblers, especially in the online segment.
Anton Kuchukhidze, Chairman of the Ukrainian Gambling Council, exclusively for the Ukrainian News
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