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Hidden risks of Draft Law 10101 for the gambling industry

Control over the field of gambling in Ukraine is on the verge of losing due to the possible adoption of Draft Law 10101. Under the guise of regulating the field of gambling, this draft law hides the possibility of tax authorities to exert pressure on legal business by applying ridiculously high tax obligations.

The changes proposed in Draft Law 10101 would only strengthen grey schemes in state lottery operations, while providing additional powers to audit other businesses in the gambling industry. In essence, this opens the door to arbitrary inspections of legal gambling operators, those who already carry a significant tax burden. However, new regulatory mechanisms for the gambling market are not proposed at the legislative level.

It seems that the hidden purpose of Draft Law 10101 is to protect grey schemes in the field of lotteries. I would like to remind you that lotteries are not considered gambling in Ukraine and are available to anyone over 18 years of age, without restrictions, unlike other legal types of gambling, which are only allowed from the age of 21 and require expensive licenses, equipment, premises, service, etc.

Lotteries can make nominal license fees per month and operate with virtually no audits or fines. Is this fair in relation to other players in the gambling industry? Obviously not.

The draft law, proposed by Mr. Danylo Hetmantsev, was commented by the Chief Scientific and Expert Administration of the Verkhovna Rada. In eight points on five pages, the Administration made conclusions about the inaccuracy of the proposed terms, and also drew attention to unsubstantiated grounds. The above highlights that the professionals implementing these changes can be disconnected from the reality of industry’s operation.


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