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Ukrainian gambling continues to recover
Anton Kuchukhidze, Chairman Ukrainian Gambling Council
Despite the hostilities in Ukraine, there is much happening in the gambling sector.. By Anton Kuchukhidze
y position on cancelling the 1xBet license
Mis simple: The only public authority able to verify the data submitted to CRGL is the Commission itself, which can send requests to other public authorities, particularly law enforcement bodies, and establish the truth. That is why I operate with the information presented exclusively by CRGL, which discovered that the relevant Ukrainian company using the 1xBet brand in Ukraine provided false information. The Commission found this company’s actions to be a violation of the law, and, accordingly, the licenses were cancelled.
It is indeed a great example for future gambling operators trying to hide information about their activities or country of origin. No matter what islands they sit on or whatever Cyprus they are registered in, the truth will prevail. It is a truly difficult but positive case. Now we all know that the Commission will find information on any company. The case has been coordinated with law enforcement agencies, and the results are visible, there is no denying that. I would like to recommend all adequate companies willing to enter the Ukrainian market in the future take care of their documents and the data submitted to the Commission.
As for land-based gambling, it is gradually resuming its operations and taking off. Today, numerous establishments operate in Western Ukraine. In the frontline regions, most gambling operators have suspended work due to hostilities and danger. However, there are isolated examples of operational gambling halls. For instance, a Ukrainian Gambling Council member opened one of its gambling halls in Kharkiv. It is located in a more or less safe part of the city, enabling the operator to resume business without the issues faced by other frontline cities, districts, regions, etc.
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In Kyiv, almost all legal casinos and slot machine halls have resumed their operations. Of course, there are more gamblers in Western Ukraine, given the population influx from dangerous and occupied territories. In general, business is more active there compared to Central, Eastern or Southern Ukraine. However, people are gradually returning to Kyiv and starting to work. When life is more stable then, eventually, people have a natural need to relax and spend their leisure time, and some will likely choose gambling in land-based establishments.
We have to give credit to all UGC members who, in such challenging times, pay license fees and taxes, and at the same time help the state implement programs to support the AFU, as well as social and humanitarian programs to help internally displaced people and refugees. Extraordinary work is done by each of our members, who have our utmost respect. I wish them further success in resuming their operations, as well as returning to peaceful life as soon as possible.
As for the development models of domestic gambling, it is first of all crucial to restore a full-fledged market where possible. Indeed, it is complicated to do anything in the regions with active hostilities until Ukraine defeats the enemy. However, in most territories, the resumption of work is absolutely possible. In this context, gambling operators are still waiting for the adoption of the tax draft law, 2713-d.
Second, we and the rest of the industry look forward to the adoption of the CRGL legislative initiative to suspend licenses during martial law. At the public level, the Association submitted its proposals to this draft law on the possibility of a legal solution to the issue of license suspension aimed at preserving and avoiding the closure of various businesses. We fully support this initiative and hope that the Commission will agree on the text of the document at the regulatory level, and that the parliament will adopt this draft law. For its part, the Association is doing its best to publicly support this legislative initiative. We hope that the draft law will be adopted to help save jobs in the industry, and make other provisions of the legislation on the business operation during martial law clearer in the technical and legal sense.