Business

Gambling business in Ukraine significantly reduced tax payments

The gambling business paid UAH 1.5 billion in taxes to the state budget in November, which is 36% less than in November last year. This was reported by the chairman of the Parliamentary Committee on Taxes and Finance Danylo Hetmantsev, Komersant ukrainskyi reports

“Regarding budget revenues from the gambling business. In November of this year, there is a downward trend in revenues. Thus, a total of UAH 1.5 billion was paid, which is 36% less compared to the same period in 2023,” Hetmantsev said.

According to him, this figure was affected by a 49.7% decrease in income tax payments compared to November 2023.

Despite the negative November, the overall picture for the first 11 months of 2024 looks positive.

“The data on tax payments by companies that provide gambling services show a significant increase. For 11 months of this year, UAH 16 billion was paid to the budget, which is 1.7 times more than in the same period of 2023,” Hetmantsev noted.

Hetmantsev also provided detailed data on the structure of tax payments from the gambling business:

• Income tax – 62.6% of revenues. The increase for 11 months of 2024 compared to the same period of 2023 is 2 times higher: uAH 10 billion versus UAH 5 billion.
• Personal incometax accounted for 37% of the revenue. The increase for 11 months of 2024 compared to the same period of 2023 is 32.7%: uAH 5.9 billion versus UAH 4.5 billion.

It should be noted that in January-August 2024, gambling organizers paid UAH 11.7 billion in taxes to the budget, which is 2.1 times more than in the same period last year.

Gambling business in Ukraine

The gambling business in Ukraine has a complicated history. Until 1989, gambling was banned in the USSR. After gaining independence, the legal gambling business began to develop in Ukraine: the first casino opened in Kyiv in early 1991. However, in 2009, a law was passed to completely ban gambling, which led to its criminalization and the development of the illegal sector.

In August 2020, the law on gambling legalization came into force, allowing offline and online gambling, betting, slot machine halls, and poker. The Commission for the Regulation of Gambling and Lotteries (CRGL) was established to oversee the industry. Despite the legalization, problems remain: according to the expert, as of 2023, there were 14 legal and about 1,100 illegal casinos and betting companies in Ukraine. The authorities continue to fight the illegal sector by introducing new restrictions and sanctions against violators.

After the full-scale Russian invasion, the problem took on a new dimension. It is believed that there is a whole epidemic of gambling addiction among Ukrainian soldiers at the front. There is no concrete evidence of this, as well as no systematic journalistic or scientific research, but after a series of petitions, President Zelensky signed a decree to restrict online gambling. Gambling advertising and sponsorship may also be banned in Ukraine.