Ukrainian parliament introduces alternative licensing fee system
New draft law would create fixed licence fees for online gaming and betting operators
The Ukrainian parliament is considering fixed licensing fees instead of the planned auction system when its online gambling market goes live next year, EGR understands.
A new alternative version of the draft bill has been introduced, with the proposed cost for an online betting licence costing €4.5m (£3.8m).
A licence for online gaming would cost €240,000 (£205,342), while online poker licences would cost €225,000 under the new draft, with all licences running for a five-year period.
There will be no limitations on the number of licences available to online operators, however retail sports betting licences will be limited to 400. Licences for retail slot machine parlours will be restricted to 40,000 licences.
The initial draft bill would have created an auction process of egaming and sports betting licences, which would be organised by the yet-to-be created gambling regulator.
EGR understands that both remaining bills will now be scrutinised side-by-side, with clauses from both bills being used in the final bill which will be passed for approval later this year.
Ilya Machavariani, associate at European law firm Dentons believes it is currently unclear which licensing system will be adopted by the Ukrainian parliament with both now potentially up for introduction.
However, Machavariani cited the recent inclusion of €112m of gambling related income in Ukraine’s 2020 budget as an indication of potentially high tax rates being on the horizon for operators.