Ukraine has joined the long list of countries worldwide that are concerned about mobile casino revenues. This was after the war-torn country's parliament voted to reinstate a hefty 18% turnover tax on regulated operators.
Danylo Hetmantsev, the head of Ukraine's finance committee, announced the new tax decision via Telegram. The statement highlighted the possible monetary benefits of this move, stating that it may significantly boost the country's budget by UAH1.5 billion ($40.8 million) each year.
This is not the first time that the European country is seeking to introduce a new tax framework on its gaming space. In July 2021, the parliament approved new measures, with a gross gaming revenue (GGR) of 10% on all forms of regulated gambling and betting.
Ruslan Stefanchuk, the head of Ukraine's legislative body, the Verkhovna Rada, announced the latest measures during a plenary meeting on Thursday, August 10, 2023. The changes would alter Draft Law 6529, which he revealed, would change the nation's tax code. This is part of the broader plan by the Ukrainian government to establish new gaming laws for the expanding iGaming market and guarantee a consistent flow of cash for the nation.
Changes to draft law 6,529 go beyond introducing new tax measures for regulated mobile casino apps. It introduces further penalties that Ukraine's National Security and Defense Council may apply in a rogue market. These sanctions show Ukraine's determination to clamp down on operators and persons acting illegally.
Earlier in the year, Ukraine's iGaming market was shaken when a leading operator quit the market. The operator, which sponsors top English Premier League sides Newcastle United and Chelsea FC, left Ukraine after a decree from President Volodymyr Zelenskyy in March 2023.
The new sanctions targeted 120 individuals and 287 businesses, many of which were betting firms in Ukraine. The government believes some of these companies were not working in the country's interest. Last month, Zelenskyy asked Denys Shmyhal, the country's Prime Minister, to review a petition filed to lift the sanction on the leading betting company.
