Author: Ivan Mostovoy28 september 2022
The legalisation of gambling is an important step for the de-shadowing and recovery of the market. Moreover, the launch of the active operation of this sector has a positive economic effect, stimulates the development of related business lines, and becomes a source of funds for the public treasury.
In the summer of 2020, the Verkhovna Rada legalised games for money, which retrieved the industry out of the shadows after almost 11 years of oblivion.
Let us consider the main facts about the domestic market:
Boris Baum, deputy head of the Regulatory Commission on Gambling and Lotteries, said:
At the end of 2021, 1.5 billion hryvnias in royalties were sent to the state budget. We believe that the plan to fill the public treasury has been fulfilled.
The government expects that in 2022, revenues from the sale of licences will reach 7.6 billion hryvnias. Besides, 2.4 billion should come in the form of taxes and another 1.3 billion hryvnias — as deductions from the winnings of punters (18% from the income of individuals and 1.5% of the military tax).
Anton Kuchukhidze, head of the Ukrainian Gambling Council, stated:
Casino operators are fully integrated into the economic system of Ukraine. The gaming industry has a cumulative effect, being an employer and consumer of goods and services of other companies.
The legalisation of casino entertainment provides the following tangible benefits for the country:
Anton Kuchukhidze said:
Licensed entrepreneurs do not exist in a vacuum. They interact with other companies, use their products and services, pay taxes, and support other sectors.
At the end of 2021, the overall economic effect of casino legalisation was estimated at 30 billion hryvnias. Essentially, these are tax revenues from operators and business representatives with which they collaborate.
The gambling industry generates revenues in the following areas:
To understand all the nuances of the legislation, operators cannot do without qualified lawyers who will advise them on all issues related to the acquisition of licences, equipment certification, company registration, and other aspects.
In 2022, the consulting industry is actively developing since many foreign managers and bookmakers entered the market
Services of banks and payment systems
In land-based establishments, operations involving the deposition of funds by gamblers and the payout of winnings must be organised through the cashier.
In digital casinos and betting offices, there is always a wide variety of money transfers, which stimulates the development of the payment industry. Flexible financial instruments that provide fast transactions with low fees are considered the most demanded
This is the lease of premises in 4–5 star hotels and entertainment complexes or land for the construction of new gambling facilities (casinos, locations with slot machines, and poker rooms).
Larger premises (from 100 square metres), which were previously considered illiquid objects, are extremely popular these days
HR and staff training
The domestic market is experiencing an acute shortage of qualified personnel. Business needs croupiers, dealers, administrators, managers, moderators of online platforms, technical specialists, and experienced directors.
The work on the search and training of staff is carried out by HR experts, which stimulates the development of recruiting in the country. Successful operators prefer to independently grow personnel using the services of freelance specialists
Construction and renovation of premises
This is a multi-million investment in the construction of entertainment complexes and related infrastructure.
For example, if the city decides to build a casino, it will receive a modern 4- or 5-star hotel with an enclosed area (squares, recreation areas), access roads, new utility networks (gas pipes, sewage), etc.
Release and maintenance of equipment
Companies need gambling (card and roulette tables, betting machines, lottery terminals, and slots) and standard solutions. These are computers, laptops, routers, cash registers, POS terminals, and video surveillance systems.
The demand for equipment certification and maintenance is increasing. Operators need timely repairs and prompt replacement of equipment
This is the purchase or rental of specialised software, including game content, administration systems, and modules for identification.
Support for the program functioning is carried out through the IT departments or by outsourcing these tasks
Gambling is a decent business that uses legitimate marketing tools. This thesis is confirmed by the Memorandum on Responsible Advertising signed at the end of 2021.
The document reflects the joint approach of casino owners to advertising their offline and online products. The memorandum which is valid until December 31, 2025, was signed by 11 licensed operators. The All-Ukrainian Gambling Organisation acts as a guarantor of compliance with the conditions stated in it.
The main clauses of the document:
Domestic operators are focused on honest advertising of casino services and the promotion of responsible gambling.
Business owners invest huge funds in the development of related industries:
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