In 2022, despite the war and economic challenges, the legal gambling market met the state budget targets. It confirmed the market stability and the effectiveness of CRGL as a regulator and manager and demonstrated the licensees’ readiness to work further. It was best confirmed by license fees paid by some legal operators in the first week of 2023.
2023 has just begun, but the state budget already feels the first positive results from paying license fees by UGC members. For instance, SPACEIKS LLC (Cosmolot brand) paid UAH 23.4 million for the third year of the online casino license. PARIMATCH LLC paid UAH 108 million for the third year of the betting license and UAH 23.4 million for the online casino license.
It means that in just three weeks of 2023, legal gambling transferred UAH 154.8 million to the state budget, comprising 10% of the gambling revenue planned for 2023.
Such a pro-government position of the majority of legal gambling representatives formed in the first months of a full-scale war against russia is crucial for the State’s economy facing a recession. It also shows several important features of the legal gambling market in Ukraine and its interaction with the State.
First, legal gambling has made its choice, demonstrating that it is not toxic as legalization critics are trying to present it, but a responsible industry that can support the State and function in challenging conditions. It is evidenced by the fact that the legal gambling remained in Ukrainian jurisdiction during the war. Online gambling operators could easily transfer their business to other countries and obtain licenses there, but they chose not to.
Second, despite all the unfavourable forecasts, Ukrainian legal gambling has not only survived but has continued to pay taxes and license fees. That is, legal operators, unlike representatives of many other industries, managed to maintain their business and continue fulfilling their obligations to the State without asking for benefits.
Third, war always divides everything into black and white, making each person or company pick a side. Gambling picked its side, demonstrating that the State made the right choice when it decided to legalize the industry two years ago. Today, the State benefits from hundreds of millions of hryvnias in the form of license fees and support through volunteer initiatives. Legal gambling has already transferred more than UAH 500 million for the needs of the army and people.
In 2023, legal gambling started strongly, having paid more than UAH 150 million to the state budget. At least, it gives hope that the budget indicators for gambling revenues will be met. At the same time, if the specialized tax draft law 2713 is adopted, the market will receive even more opportunities and incentives for development even during a full-scale war.