On 16 January 2020 the Ukrainian parliament has adopted in a first reading a Draft Law on the regulation of the gambling industry. This law has a potential to persuade foreign companies that investments in a reborn gambling industry may bring substantial profits. It is especially true regarding the establishment of casinos. In this article we will briefly analyse requirements for establishing and functioning of casinos, bearing in mind that some aspects may change during the second reading of the Draft Law.

I. Who regulates casinos?

The state supervision and regulation of the gambling industry in Ukraine will be conducted by a newly created body. The main tasks of that body would be to safeguard equal treatment of companies, apply sanctions for violations, support registers on companies in the gambling industry, establish the list of international companies that develop acceptable for Ukrainian market gaming machines, grant and annul licenses, establish rules for social responsibility, conduct examinations on compliance with the law etc. 

II. Who may establish casinos?

The main requirements that a company has to meet to be able to establish casinos are the following:

• the company that is registered and conducts its business in Ukraine and the main economic activity of which is organisation and conducting of gambling;


• the minimum share capital of the company is UAH 30 million (approximately USD 1,2 million);


• the share capital may be formed only by monetary means and the company shall report about sources of funds;


• the company shall obtain a bank guaranty or a special deposit in a minimum amount of UAH 34 million (this price is subject to changes due to increases of the minimal wage); 


• the company cannot be associated with the Russian Federation (a state that is recognised as an aggressor state under the Ukrainian law).

III. What is the price for licenses? 

Organising gambling in Ukraine would be an activity that requires licenses. In terms of licenses for casinos industry, the Draft Law provides the following price segmentation:

• UAH 280 million (all these prices are subject to changes due to increases of the minimal wage) – for casinos that are located in 5-star hotels in Kyiv and have more than 200 guest rooms;


• UAH 570 million – for casinos that are located in 5-star hotels in Kyiv and have 150-200 guest rooms;


• UAH 140 million – for casinos that are located in 5-star hotels in other locations and have more than 150 guest rooms;


• UAH 280 million – for casinos that are located in 5-star hotels in other locations and have 100-150 guest rooms.

Draft Law also establishes prices for licenses for roulette tables and other gaming tables in the amount of UAH 1,65 million and UAH 826 thousand per table respectively. All these licenses are valid for five years. 

There is also a possibility to avoid payments for previously mentioned licenses for 10 years, in case a company receives an investment license. It is given by an authorised body to a company that builds a 5-star hotel with more than 200 rooms (if the hotel is located in Kyiv) or more than 150 rooms (if the hotel is located in another place).

IV. Where casinos may be opened and how should they look like?

The Draft Law strictly regulates the requirements for the venues, where casinos may be located. First of all, casinos may be opened only in 5-star hotels with more than 150 guest rooms in Kyiv and more than 100 guest rooms in other locations. Moreover, if the casino is located in a city with more than 500 thousand inhabitants, the casino should have no less than 10 gaming tables, amongst which at least two tables are roulettes, and, at minimum, 50 slot-machines. In the locations with smaller population or outside cities, the requirements are the following: no less than five gaming tables, while at least one of them is a roulette table, and no less than 10 slot-machines. 

In addition, the Draft Law requires that at least 50 persons shall be officially employed in each casino. The minimum area of the room for the casino is set to be 500 square meters. 

To conclude, the draft law on the regulation of the gambling industry may be adopted in the nearest future. Hopefully, this law would be able to strike a balance between the interests of different groups in practice and boost investments in Ukraine. Yet, the exact wording of the law may still change from the one, described above.