17 March 2023
To:
Prime Minister of Ukraine
Denys Anatoliiovych Shmyhal
Chairman of the Verkhovna Rada of Ukraine
Ruslan Oleksiiovych Stefanchuk
Deputy Prime Minister of Ukraine,
Minister of Digital Transformation of Ukraine
Mykhailo Albertovych Fedorov
Head of the parliamentary faction of the Servant of the People party
Davyd Heorhiiovych Arakhamia
Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy
Danylo Oleksandrovych Hetmantsev
Chairman of the Subcommittee on the Organization and Taxation of Gambling Business of the Parliamentary Committee on Finance, Tax and Customs Policy
Oleh Romanovych Marusyak
Chairman of the Commission for Regulation of Gambling and Lotteries.
Ivan Tarasovych Rudyi
OPEN LETTER of gambling organizers
regarding the situation in the gambling sector
We, the licensed gambling operators, would like to express with this letter our respect to you and call on you regarding the following.
Since the legalization of gambling in the territory of Ukraine through the adoption of the Law of Ukraine "On State Regulation of Activities Regarding the Organization and Conduct of Gambling" No. 768-IX dated 14 July 2020 (hereinafter the "Law on Gambling"), the Commission for Regulation of Gambling and Lotteries issued 65 licenses for the organization and conduct of gambling, which ensured more than 3 billion hryvnias of tax revenues to the State Budget of Ukraine from license payments by gambling organizers.
Currently, more than 30 brands of licensed gambling organizers are already represented in the Ukrainian gambling market, and there are a significant number of new companies expecting to enter the Ukrainian market in 2023, especially after our Victory!
The legalization of gambling ensured tens of billions of hryvnias of direct investments in the economy of Ukraine; more than 10,000 high-paying jobs were created by the organizers; the development of related industries, in particular advertising, hotel, construction, service and other sectors of the economy received a significant boost.
After the beginning of the full-scale invasion of the Russian Federation into Ukraine, representatives of the gambling business actively participate in providing aid to the country, support the Armed Forces of Ukraine, and use all opportunities that bring our Victory closer.
Thus far, the total amount of aid provided amounts to more than one billion hryvnias.
Unfortunately, the reform of the gambling sector is not finished, because the changes to the tax legislation have not been adopted.
Adoption of the draft Law of Ukraine No. 2713-д "On Introducing Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Taxation of Income from the Organization and Conduct of Gambling and Lotteries" dated 19 June 2020 is a decisive step for the implementation of a full-fledged reform of the gambling sector.
We ask you to adopt the draft Law "On Introducing Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Taxation of Income from the Organization and Conduct of Gambling and Lotteries" (hereinafter referred to as "Draft Law 2713- д").
The lack of a balanced and clear tax legislation complicates the activities of the organizers of gambling that have already received licenses and prevents the development of the market, which leads to losses of the State Budget of Ukraine and the flourishing of the illegal segment.
Draft Law 2713-д has been adopted in the first reading and included in the agenda of the Verkhovna Rada of Ukraine. Adoption of Draft Law 2713-д intends to create a new system of taxation in the gambling sector, which will be adapted to the conditions of legalization of gambling in the territory of Ukraine.
In order to control the activities of the gambling organizers, monitor the operation of gambling equipment and ensure the rights of players, a State Online Monitoring System (SOMS) must be created.
However, the online monitoring system has not been created and has not been put into operation at this date.
We point out that the introduction of the SOMS must be done immediately with the adoption of Draft Law 2713-д.
These obstacles for the regulation of gambling in the territory of Ukraine cause significant adverse consequences for the development of the industry. First of all, it is about the impossibility of attracting more foreign investments and gambling organizers to the Ukrainian market, increasing the number of illegal gambling establishments, etc.
If Draft Law 2713-д is adopted and SOMS is put into operation, the state will be able to bring the gambling sector in Ukraine to another qualitative level, which will make Ukraine an Eastern European gambling hub.
We, the licensed gambling organizers, address the esteemed representatives of the authorities with the following.
We ask:
(1) To adopt the draft Law "On Introducing Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Taxation of Income from the Organization and Conduct of Gambling and Lotteries" (registration number 2713-д dated 19 June 2020).
(2) To adopt the draft Resolution of the Cabinet of Ministers of Ukraine "On approval of the Procedure for the operation of the State Online Monitoring System."
(3) To ensure the creation and commissioning of the State Online Monitoring System simultaneously with the adoption of Draft Law 2713-д.
(4) Davyd Heorhiiovych Arakhamia, the head of the parliamentary faction of the Servant of the People political party, to facilitate holding a faction meeting together with representatives of gambling organizers to discuss the situation in the gambling sector.
(5) Oleh Romanovych Marusyak, the head of the Chairman of the Subcommittee on the Organization and Taxation of Gambling Business of the Parliamentary Committee on Finance, Tax and Customs Policy, to organize a discussion of the issues outlined in this letter, to inform all operators of the date and time of such a discussion and to invite interested representatives of state agencies, and to participate in the discussion.
We are confident that the above-mentioned steps will become a starting point for solving issues of concern and will allow the gambling sector to continue its development at a qualitatively new level, the budget will receive significantly more tax revenues, and the related sectors will received additional income and investments, which will positively affect the economic capacity of Ukraine, required for achievement of our most important and most anticipated Victory as quickly as possible.